RSS wants Modi government to ban Flipkart, Amazon and eBay?

[prasad1]

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I could not decide category so it is GD.

Claiming that foreign e-commerce firms such as Amazon and eBay are 'killing domestic players in the Indian market', the economic wing of the RSS has asked the government to ban them. However, that is not the end of the story. The RSS reportedly wants Indian e-retailers such as Flipkart to be banned as well, as they have high foreign fund infusion.


Reportedly unhappy with the Modi government's FDI policy, leaders of the Swadeshi Jagran Manch (SJM) met Finance Minister Arun Jaitley earlier this month for a discussion on the budget and have sought a white paper on FDI.


"We are of the opinion that FDI in e-commerce should be prohibited by law. Though we do not allow FDI in e-commerce sites, they circumvent the law to sell their product in the country. Even Indian e-commerce firms like Flipkart have turned to be foreign now with funding from outside. There is a lacuna in the law and this cannot be allowed. We have asked the Finance Minister to plug loopholes in the law," Ashwani Mahajan, SJM national convener, told The Indian Express.


Indian law allows FDI in market places that link sellers and buyers. According to a Motilal Oswal report, the $11-billion e-commerce market in India is expected to grow 37% to reach $20 billion by the end of this year.


The government, however, does not have any data on the e-commerce industry. Neither is there a proposal for a regulatory framework for e-commerce.


What is the opinion of Indian Consumers? And does it count?

 

[krish44]

j bhagwathi in a recent interview on TV says modi has no reservation on ecommerce or multibrand

retail fdi limits

only it is a matter of timing

bjp in its original avathar jansangh drew its strength from small traders.

now it has a broad based appeal cutting across other sections of society.

so he might not be too dependant on traders.

this is bhagwathis assessment.

nor modi believes in distributive justice.

he is for growth and believes income from growth to be spent on education and health.

let us see what happens to these ecommerce companies.

modi would not like a wrong message to go to foreign companies on ecommerce or fdi on retail

 

[mkrishna100]

I do not know whether the BJP Govt at the Centre will ban Flipkart , Amazon and other online shops but one thing is for sure i.e many small traders are facing the heat and unable to compete with the online retailers and many are forced to close shop . The worst affected are those shops who are situated in the Big Malls paying huge rent and other big shops who were popular once . The small shops around the street corner still continues to do well . In Chennai I had a talk with some of these Mangers , Owners of these small and relatively big shops and they said that the buying pattern of people have changed and no longer people come to shops to buy and most prefer to shop online where they get good discounts and also they can save lot of time . They said that those people who still come to shop and buy are the Older generation people who are retired and have time . The younger generation i.e those in 20s,30s ,40s prefer to shop online and if at all they come for shopping they do so only during the weekends or on holidays and that too they choose shops that have good parking facilities .
The small shops say that only way they can compete with this new buying pattern is to keep the shops open all the 365 days of the week and rarely close the shop , do free door delivery of the goods even if it means employing couple of young men for the same .But many say that it is really a tough time to do business in the same way they did a decade back .

 

[prasad1]

We lament the changing times, sometimes not realizing that good old days were really not that good. I love comparative shopping and to me on-line shopping is a Boone. If the on-line retailer is honest the consumer is the ultimate winner. The middle man only increases the price and add a layer of cheating to the common consumer.

 

[sarang]

There are ways of controlling on line predatory pricing to protect small and medium retailers. In the pharma industry, the middlemen, doctors and retailers got big cuts because MRP printed on the pack bore relation to the factory price, sometimes even 300% markup. When a guideline was passed that excise to be paid was on 65% of mrp (35% to cover delivery and commission) many readjusted the mrp to reflect real costs. In book sales, sometimes e-edition is more than printed edition, even though printing, delivery, display costs are virtually nil. It will take several years to edge out local grocers and veg vendors, but electronic and consumer appliance dealers may have to rethink.
In the local landmark shop, computers, mobiles and electronic gadgets and music are all gone.

 

[sarang]

There is already some action in this direction. On line ordering of essentials - grocery, fresh food, medicines, are routed to the nearby grocer for home delivery.

 

[mkrishna100]

In the local landmark shop, computers, mobiles and electronic gadgets and music are all gone

Many landmark shops are themselves closing down .
[h=1]10 Landmark stores shut, more in closure mode[/h]
10 Landmark stores shut, more in closure mode | mydigitalfc.com


[h=2]Tata venture runs out of steam as books go online, e-comm surges[/h] Tata’s Trent Retail has closed down around 10 stores of its leisure chain Landmark. Some of the existing stores, too, are in closure mode with depleted stocks.

The company was operating 21 stores when TVS Shriram Growth Fund exited the chain last year after staying invested for four years. However, that number is now down to 11.

In Chennai, where the Landmark chain originated in 1987, three stores were closed this year and the one remaining has only a fraction of the merchandise it used to have earlier.

Landmark stores have been suffering losses over the past few years. In March 2012, the company, as a subsidiary of Trent Retail, posted Rs 230 crore revenue but saw losses due to “restructuring expenses in terms of supply chain and merchandise.” Later, it was amalgamated with Trent Retail.

When contacted by Financial Chronicle, Trent Retail officials refused to talk about their plans with Landmark stores.

Landmark outlets were largely bookstores initially, but as the market changed, the stores too expanded their assortment to include other products in the leisure category.

“Five to six years back when we had invested, the onslaught of the digital channel was not foreseen. The market has changed considerably after online chains started selling books. Now books themselves are going online. Landmark could have gone into e-commerce much before Amazon or Flipkart came in,” said Gopal Srinivasan, CMD of TVS Capital Funds.

He said in the books category, bestsellers and magazines did not contribute much to the margins, but non-fiction and reference books did. Reference books like encyclopedia and world books and non-fiction were a big hit initially before the content went online.

Landmark has been tweaking the product mix of late by giving more importance to categories like toys. Talking to Financial Chronicle earlier, Sivaraman Balakrishnan, senior manager marketing, Landmark, had said: “The space consumed by books in the retail shelves has shrunk from 60 per cent to 40 per cent. Sales came down first and then the space.”

Last year, toys and stationeries accounted for more than 50 per cent of sales of Landmark stores, while books contributed to less than 25 per cent.

Brijesh Parnami, CEO of Destimoney Advisors, said the company would have thought that considering the market scenario the revenue from the venture was not commensurate with the investment being made.

“Typically Landmark has large format stores, that too in prime locations in each city. But the products they sell do not belong to high-margin categories. Every company sets up a certain hurdle in terms of returns and a specific timeline to achieve it. If things do not move as per the plan, they go slow or slowly wind up. Tata group, of late, seems to be focusing on e-commerce and probably it is finding it better to sell online than offline,” he said.

Other leisure chains, too, have been going through tough times dealing with the evolving market. Some of them have been trying to reinvent themselves.

Crossword stores of Shoppers Stop are increasingly reaching out to schoolchildren, trying to inculcate reading habits. “Our vision is to inculcate reading habits and to stay true to this. We do children’s hours every week in our stores across India,” said Govind Shrikhande, MD of Shoppers Stop.

Starmark has been conducting book exhibitions, meet-the-author events and reading sessions in over 50 schools in Kolkata.

 

[vgane]

E commerce is the way forward..Most of the e gadgets are brought online...From books to mobiles to computers online is ruling the roost...Even in case of other consumer items like Washing machines most of the stores do not have the variety...Also the stock is in a go down ..So you do not happen to see and feel the actual item that you are purchasing...When you get the same thing cheaper in an online stores customers are swarming

 

[tbs]

hi

thses things are very common in capitalist economy.....these are SIDE AFFECTS of growing economy...

 

[limat]

the e-commerce sites are great for customers who are technically savvy.
It is of no use to others. In India e-commerce is in its infancy.