Small traders led by CAIT have threatened to launch a nation-wide agitation
Discounts offered by e commerce sites during festival season is a concern for small traders
New Delhi: The confrontation between big boys of e-commerce Flipkart, Amazon and Snapdeal and small traders is set to get intensify in coming days. Concerned over discounts and promotion sales offers by the on-line shopping sites in the festival season, small traders have threatened to launch a nation-wide agitation if government doesn’t come out with regulations to regulate these e-commerce websites soon.
However on the other side industry chamber Assocham has asked government that recent Flipkart incident should not be used as a ploy to subject the fledgling and a hugely promising e-commerce space to regulation over and above the rules of the game which are applicable to normal business. It said that the sector holds big promise in terms of creating new market among the aspirational middle-class consumers and any over-regulation will “kill the business in its infancy, denting the entrepreneurial spirit of the promoters, most of whom are young”.
“What is noteworthy about the e-commerce phenomenon is that it is attracting a lot of first generation young entrepreneurs besides the global players like Amazon and e-Bay showing great interest,” said Assocham.Confederation of All India Traders (CAIT), which represents small traders and wholesalers, has convened a meeting of its National Governing Council on Monday to take stock of the current situation and to decide future course of action on the issue e-commerce. The meeting will be attended by prominent trade leaders of different states.
CAIT, which along with other small traders successfully blocked FDI in multi-brand retail termed e-commerce more dangerous than “MNCs retail chains”.“While we have to follow dozens of regulations, e-commerce has become a free for all. If government doesn’t bring regulation for e-commerce we will have to launch agitation,” CAIT, secretary general, Praveen Khandelwal told this newspaper.
Mr Khandelwal said that they were concerned how come e-commerce are selling products below the cost at which wholesalers get them. CAIT will also convene a meeting after Diwali with FMCG companies to discuss their concerns and product pricing.
About 50 companies, including LG, Samsung, Sony, Philips, Reebok, Puma, HP, Titan, Casio, and Guess have been invited, it said, adding that a White Paper will also be prepared from the discussion which would be submitted to the commerce and industry minister.
CAIT said that there is an estimated loss of business from 20 per cent to 35 per cent in various segments in last six months and if the present trend continues “it is apprehended that the off-line market will suffer a loss of about 50 per cent business by the end of Diwali festival”.
( Source : dc correspondent )
Next Story
