Big Billion Day is over but the big billion troubles for Flipkart. As after customers, now there are brands and traders who have raised their concerned about such sales, saying that these affect the traditional retail market badly. The issues raised by the traders has now reached to government which says that it will look into the concerns and take a call on whether more clarity is required on ecommerce retail business.
“We have received many inputs. Lot of concerns have been expressed. We will look into it,” commerce and industry minister Nirmala Sitharaman said.
Moreover, government might also look to think of a separate policy ecommerce. “Now there are many complaints. We will study the matter… whether there is a need for a separate policy or some kind of clarification is needed, we will make it clear soon,” Sitharaman said.
With the festive season hitting India, there are a number of online players who have come out with different sorts of discounts, sales etc. to increase their sales during this time. Earlier this week, Flipkart came out with its Big Billion Day from which it managed to get over 1 Bn hits on the site in one day, with over 1.5 Mn shoppers purchasing goods taking total sales done by Flipkart to $100 Mn in just 10 hours. Whereas, Snapdeal which was also running a marketing campaign, sold products worth INR 1 Cr. a minute. Amazon too ran a sale from October 4-6, calling it the ‘Mission to Mars’ weekend, however numbers of sales etc. are not shared by it as of now.
The level of discounts offered by these ecommerce players increased concerns among the traditional brick-and-mortar retailers. As traditional players can’t match the level of discounts offered by the online players and thus their business suffers.
Recently, Confederation of All India Traders and the Online Vendors Association of India (OVAI) have also suggested that there must be a probe into how these ecommerce players are offering huge discounts for these sales.