The FlipKart Diwali offer in which consumers could not access juicy deals, due to massive response and in turn and led to jamming the online retailer’s website, should not be used as a ploy to over-regulate the fledgling ecommerce sector, says ASSSOCHAM.
It may be recalled that Flipkart had offered massive discounts on its massive merchandise as a Diwali offer a few days back. Massive response from Indian consumers had led to its portal getting jammed and consumers could not access the website.
Alongside, traditional brick and mortar retailers, including companies had raised a huge hue and cry over the massive discounts the etailer had offered to consumers by saying that these discounts were affecting their businesses.
Peeved by the complaints raised by traditional and modern retailers, Commerce and Industry Minister Nirmala Sitharaman said the government of India is looking into the concerns of traditional retail players and if required, will issue more clarity on ecommerce retail business in the country.
Leading trade body ASSOCHAM in a statement said, “The Flipkart incident should be taken at the most as one-off case and let it not be used as a ploy to subject the fledgling and hugely promising e-commerce space to regulation over and above the rules of the game.”
ASSOCHAM Secretary General Mr D S Rawat said “To suspect malafide on the part of Flipkart or to paint the entire e-commerce business with a brush of doubts will be wrong. If at all any regulatory issue is involved, let it be dealt within the existing laws concerning interests of the consumers.”
He said subjecting this sector which holds big promise in terms of creating new market among the aspirational middle class consumers will kill the business in its infancy, denting the entrepreneurial spirit of the promoters, most of whom are young and people willing to try out new ideas.
While the unorganised retail has been estimated at about USD 550-600 billion, the organised retailers have been able to corner a market of about something like USD 25-30 billion while the e-commerce is just about USD three-four billion.
"But given the kind of enthusiasm both on the part of the e-commerce players and the consumers, the sector holds a great promise. What is noteworthy is that it is attracting a lot of first generation young entrepreneurs besides the global players like Amazon and e-Bay showing great interest,” he added.
"In an era of technology, e-tailing is something which we cannot afford to miss or stop. Besides creating a new type of demand among consumers, e-commerce will have a sobering impact on the excessive cost of commercial real estates. To assume that e-tailing will spell doom for the organised retailing in the malls and traditional markets will be an incorrect assessment,” he informed. (AR)
