As the popularity of Indian and foreign based e-commerce
companies are climbing day by day which upsets traditional major retailers of
the country, the big boys have finally come together to fight the onslaught of
their online counterparts.
Reliance Industries Ltd (RIL), Aditya Birla Group,
ITC, Bharti and Future Group have complained against predatory pricing on
e-commerce platforms.
In letters to the ministries of finance and
commerce, Retailers Association of India (RAI), an apex body of major retailers
whose members include RIL, Aditya Birla Group and Bharti demanded restrictions
on bulk and mega discount sale by online retailers.
Recent mega sales by some online companies drew
severe criticism from offline traders, as many products were sold at below-cost
prices.
A few established retailers have, however, started
leveraging the on-line marketplace model by venturing into this segment; some
are exploring e-commerce possibilities, while maintaining offline businesses.
India’s e-commerce sector, pegged at about $4 billion, is expected to grow to $15 billion in two years. Traditional sales still account for the bulk of India's $600-billion retail market, the majority of which is unorganized. The e-commerce sector's share remains only three-four per cent. This year, investments in this sector have risen to Rs 20,000 crore, four times the amount last year.
India’s e-commerce sector, pegged at about $4 billion, is expected to grow to $15 billion in two years. Traditional sales still account for the bulk of India's $600-billion retail market, the majority of which is unorganized. The e-commerce sector's share remains only three-four per cent. This year, investments in this sector have risen to Rs 20,000 crore, four times the amount last year.
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