Smaller cities bail out e-tailers
Novelis, a subsidiary of Hindalco Industries, said the European Commission has approved its proposed acquisition of Aleris Corporation. The approval is conditioned upon the sale of Aleris' plant in Duffel, Belgium, which produces aluminum for the automotive and specialties markets. Novelis is working expeditiously to market the plant to potential buyers, a release said. The insurance regulator has directed all insurers to ensure that travel insurance coverage does not come as a default option when buying tickets on any ticket-booking portal.
The Insurance Regulatory and Development Authority of India (Irdai) also banned selling travel insurance cover to tickets bought 90 days in advance for domestic travel.
The move aims at checking mis-selling of travel insurance through online ticket booking portals and apps.
Insurers welcomed the move, saying it will benefit both the insured and the insurers. “Though domestic travel insurance remains a small portion of the business, the new norms announced by the Irdai will benefit both the insured and the insurers,” Gurdeep Singh Batra, head, retail underwriting, Bajaj Allianz General Insurance said. “Providing those booking tickets the confirmation option of whether they want the cover or not is a welcome step,” he added.
As per the Irdai circular issued last week, Irdai said, “Insurers shall ensure that any portal or app providing the travel insurance coverage shall not pre-select the option of buying the travel cover as a default option.”
The circular also said, “Premium shall not be received more than 90 days in advance to the date of commencement of the risk covered in case of domestic travel or along with the ticket while purchasing the travel tickets, whichever is earlier.”
The norms are not applicable to international bookings, said Batra. New customers from tier II, III cities and beyond are driving festive sales of ecommerce players. Broader customer base is helping e-commerce players grow their festive season sales despite the slowdown.
In the first 24 months of its Great Indian Festival, Amazon.in saw the single largest day of Prime membership sign-ups, with 66 per cent of Prime member shoppers coming from tier II and III towns. There were more new shoppers online than ever, of which more than 91 per cent came from tier 2 and 3 towns.
“We are humbled that first 36 hours of our Great Indian Festival has seen record participation from digital Bharat. With record Prime signups, more firsttime shoppers from small towns than ever before and tens of thousands of small sellers across India already seeing success, we are excited by how India loves Amazon’s commitment to offer largest selection, great convenience and exceptional value to its customers.” said Amit Agarwal, Global Senior Vice President and Country Head, Amazon India.
According to Flipkart, tier 2 & 3 cities ushered in the festive cheer for the company. The number of transacting customers from tier 2 and beyond doubled on day 1 over The Big Billion Days of 2018.
“This Big Billion Days, we witnessed the growing appetite of Bharat (tier II & III cities) for mobiles, large appliances and consumer electronics. As consumers from these cities upgrade, they are coming at par with the metros showcasing unique needs and spending patterns across these categories. We are glad that most of our affordability constructs have helped get India and Bharat closer this festive season,” said Kalyan Krishnamurthy, CEO, Flipkart.
Similarly, Snapdeal in the first three days of its 8-day “Snap-Diwali” sale, received nearly 92 per cent of the orders from non-metro locations. There has been a multi-fold increase in orders received from smaller cities.
“The trends from the Diwali sale are an unequivocal confirmation that ecommerce is now a strong channel for buyers in smaller cities. Through Snapdeal, we are effectively bridging the gap between the aspirations of the buyers and what is available in the local bazaars,” Mr Kunal Bahl, CEO and Co-Founder, Snapdeal.