Circumventing of policy by ecommerce players
Sinece Indian law did not allow FDI in B2C e-commerce but FDI is allowed only in B2B e-commerce—many players were circumventing the rule through the ‘marketplace’ route. The FDI would typically come into an entity investing in and handling the logistics, warehousing, sourcing, etc, and since this was a B2B entity, this was legal. This company, in turn, would have a contract with the marketplace that was a B2C entity and had, by law, no FDI. With this circumventing FDI was coming into the B2C space despite the ban on it.
this puts the Indian brick mortar retailer at a disadvantage as they cant get this same FDI capital. Law should be same for both retail and ecommerce. more
this puts the Indian brick mortar retailer at a disadvantage as they cant get this same FDI capital. Law should be same for both retail and ecommerce. more
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Oct 31
All over the world, specially the West/Australia etc. where they have no concept of FDI, the Brick-&-Mortar Retailers is happily coexisting with the E- tailers and there is no deep erosion except the normal Business ones !! The problem we have in India is that all the middle-men (distributor/dealer/transporter/etc. & the Retailer wants to still earn as high as earlier to retain their status as Lalas .. With the Scientifically+Logically Managed E-tailers managing to sell everything at much lower prices, it is only logical that the Old Brick-&-Mortar Styles will fail .. Why should I or you buy at substantially Higher Prices from them !! So, instead of regulating thru Taxes/Duties/FDI/etc., the Lalas need to change their style & be ready to work at Logical Margins .. more
Apr 28
The reason for enormous number of suits in Indian courts is the prsenece of loopholes left in every law passed : This is the work of beaucrats who want this to be so. Simplification of law and ensuring there is no loop hole is the first step to end corruption too. more
Apr 28
