Over the year there has been huge increase in e-commerce service in India.Some of them are Flipkart,Snapdeal,Amazon,ebay,paytm. Popularity of internet shopping has increased dramatically.With growing investment from other countries e-commerce in India is reaching higher heights. Is this right way to go?Or government needs better policy?How much will it affect local retailers?
As a Country India has large number of single local retailer shop in every corner of the country.India has a shop for every 100 citizen(approx).At the same time huge retail loss also happens in India due to various reasons like government policy and smartness illegal retailers. This also affect consumers while buying goods in local shops with increased price than production cost.
Recently Flipkart a Singapore based e-retail company has raised $700 mn for its business in India.Now flipkart is valued at $11 bn. This will help flipkart to increase its presence in e-retail with large amount of Ads and promotion.Similarly Amazon also invested over $2 bn to take on likes of flipkart.
Another E-retail company which had large investment last year is Snapdeal. Japanese Telecom Company SoftBank has invested in snapdeal and now snapdeal has raised its funding to $2 bn.
New addition to this is Paytm(one97 communication) formally a online mobile recharge company now started selling products through paytm. Recent information is that largest E-retail company Alibaba group will invest in one97 communication valued at $64 bn this year and huge investment latter.This shows how world values e-retail business in India.But problem starts here...
With huge investments from other countries they afford to give discounts below the market price to attract consumers for longer period. Recently flipkart made huge discounts in its website and got hit with its own strategies from people and government with misleading discounts.
Every company has its own plan to grow up but in India local retailers don't have investment to cover its members.This is a huge concern and government should regulate proper policy to control E-retail websites.
After large discount spray for many years E-retail websites has reduced discounts as they have attracted consumers.Now people prefer e-retail model for shopping.This is not the fault of e-retail websites its government mistake as they failed to look after.Betterment for consumers is great with one day delivery and other things.
Government should take proper steps to help local retailer and make e-retail more consumer friendly.
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