Global Threads

A round-up of im­por­tant news and events

Apparel - - CONTENTS -

All stake­hold­ers miffed with ‘Big Bil­lion Day’ sale

 The leader in In­dia’s e-com­merce space, Flip­kart, launched their much touted ‘Big Bil­lion Day’ sale on Oc­to­ber 6, 2014, at 8 AM, la­belling it ‘the sale to end all sales.’ How­ever, there were ma­jor glitches and cus­tomers, ven­dors and brands alike were left fum­ing. It turned the pub­lic mood against Flip­kart and the e-tailer had to ac­tu­ally send out apol­ogy mails to cus­tomers. Off­line re­tail­ers and brands ac­cused on­line plat­forms of spoil­ing the sale op­por­tu­ni­ties en­vis­aged by them around the fes­tive sea­son. While Fu­ture Group has said that the big bang sale strat­egy be­ing adopted by on­line plat­forms is anti-com­pet­i­tive for sell­ing prod­ucts be­low the cost price, mer­chants sell­ing wares on th­ese mar­ket­place mod­els have said that the e-com­merce plat­forms are forc­ing them to sell prod­ucts at much lower prices than their ac­tual buy­ing price, which is ad­versely af­fect­ing their profit mar­gins. The On­line Ven­dors As­so­ci­a­tion of In­dia now plans to ini­ti­ate a mea­sure to com­bat their woes by cre­at­ing a fo­rum for on­line ven­dors and de­velop a clear on­line ven­dor pol­icy to reg­u­late pric­ing and avoid such price dis­par­ity since on­line stores; be­cause of their un­fair business prac­tices are killing the reg­u­lar business of a ven­dor.

Re­lief for Flip­kart after ‘Big Bil­lion Day’ sale fi­asco

Union Com­merce and In­dus­tries Min­is­ter Nir­mala Sithara­man said there was no in­quiry into com­plaints of preda­tory prices of goods and un­fair trade prac­tices against e-com­merce gi­ant Flip­kart dur­ing its re­cent ‘Big Bil­lion Day’ sale. “I would like to state that no in­quiry has been planned or pro­posed on the e-re­tailer on the con­cerns raised by cus­tomers on the big bil­lion day sale,” she told re­porters after a visit to the BJP of­fice in Ben­galuru. Sithara­man on Oc­to­ber 8 in New Delhi had said that the Cen­tre would look into the com­plaints of preda­tory prices on goods sold by Flip­kart after al­le­ga­tions of un­fair trade prac­tices were lev­elled against it dur­ing the dis­count sale on Oc­to­ber 6. “We have re­ceived many in­puts. Lot of con­cerns have been ex­pressed. We will look into it,” she had said. She said her ear­lier re­marks were mis­in­ter­preted. “My ear­lier three sen­tence re­marks were in­ter­preted in three mil­lion ways on the Flip­kart is­sue,” she said.

Counter strate­gies be­ing adopted by malls to beat the com­pe­ti­tion

Shop­ping malls in the coun­try are go­ing through a trans­for­ma­tion to make them­selves more of a ‘recre­ation’ des­ti­na­tion, adding more restau­rants, spas, sa­lons and even clin­ics, at least par­tially in­flu­enced by the re­cent boom in on­line shop­ping. Ben­galuru-based real es­tate de­vel­oper Pres­tige Group, for ex­am­ple, plans to bring food of­fer­ings to almost ev­ery floor of its up­com­ing shop­ping malls rather than re­strict­ing food out­lets mostly to the top floor. “Ear­lier peo­ple used to come for shop­ping and they would eat. Now, we think they will come for food and will shop as well,” said Suresh Sin­gar­avelu, Ex­ec­u­tive Di­rec­tor for Re­tail at Pres­tige. With on­line re­tail­ers cor­ner­ing a chunk of the ex­pected growth in In­dia’s over­all mod­ern re­tail­ing, in­dus­try in­sid­ers say a lot of mall own­ers are ner­vous. “We are all wor­ried. We are try­ing to find out how we can fight the on­line surge and the is­sue of cus­tomers mov­ing out,” said a Mumbai mall de­vel­oper. To beat the on­line wave, malls are com­ing up with new of­fer­ings to at­tract con­sumers. “Very few peo­ple come to malls only for shop­ping. They come to us for the whole ex­pe­ri­ence. That is why we have al­ways be­lieved in mak­ing the whole ex­pe­ri­ence at­trac­tive,” said Ar­jun Sharma, Di­rec­tor at Se­lect Ci­ty­walk.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.