New norms may freeze Flipkart, Amazon models

Discussion in 'Latest Technology News' started by 6pack, Dec 27, 2018.

  1. blr_p

    blr_p Well-Known Member
    Veteran

    For now. What if the trade war between the US & China intensifies ?

    Trump wants to reduce the trade deficit presently to the tune of $350bn with China to a manageable level. At the same time China will resist it as otherwise people there will be out of work and this means social instability. Neither party will back down. If they come to a deal then China keeps those investors otherwise those investors will get spooked and look elsewhere and this is where India comes in. In any case as wages rise in China there will always be a price advantage with India.

    Same applies to Indian companies as well, why invest a fortune only to have govt wrk against it. No, if companies are investing then they have a good idea of risk.

    Why allow online commerce at all ? they relented and we know what the size of the ecommerce segment is like and it will continue to grow. This is a good source of tax revenue. If we have understood this move completely it means that ecomerce will be affected. I find it hard to believe we are going to turn the clock back to pre-amazon/flipkart days

    We have the potential for scale.

    WTO is a possibility. Though we are supposed to have rule of law here too. There could be other angles as well. I'm seeing this solely through a domestic lens.

    Just watch this topic and post if you see something relevant. We will have a better idea after some time. Whether initial assumptions were correct or not.
     
  2. chetansha

    chetansha Well-Known Member
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  3. blr_p

    blr_p Well-Known Member
    Veteran

    How does selling private labels make much difference. The key contention was this no more than 25% inventory online thing. What is the change there ?
     
  4. adventureguy

    adventureguy Well-Known Member
    Veteran

    govt also stopped amazon flipkart from selling private labels because they only sell majority of them online and not offline. Govt wanted them to sell 75% stock offline and only 25% online like the new e-commerce policy dictates
     
  5. Lord Nemesis

    Lord Nemesis Overlord
    Veteran

    The ecom policy completely banned private labels linked to a FDI company from selling all together by basically considering then as having indirect FDI themselves. The 25% rule is only for the other 3rd party businesses. Private labels were never expected to sell offline.

    In any case govt seems to be back tracking on this after these brands lobbied hard.
     
  6. OP
    OP
    6pack

    6pack Well-Known Member
    ex-Mod

    I have a theory on why this u-turn came. Just look at the timings of Trump meeting with Modi and a day after that this news comes out. Most probably CEO's from Amazon and Walmart had a talk with some people in US administration (and they in turn talked to the Indian delegation). Maybe the Indian side thought they could outsmart the US business's in such things but got a kick in the ass instead. Maybe they were threatened with similar retaliation in the US. What happened is not known, but the timing is too perfect. A lot of Govt officials who usually brag, remaining tight lipped adds even more to the puzzle.

     
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  7. Lord Nemesis

    Lord Nemesis Overlord
    Veteran

    Not an ice cube's chance in hell of that happening, Trump is not the kind of person who would do something because it is good for his country. He generally does random things based on his own upside down assumptions and perceptions. But leaving that aside, Bezos is the polar opposite of everything that trump represents and Trump vehemently hates Bezzos and everything that he represents. He literally ranted about him online for years and it enrages him that Bezzos doesn't even care to take the bait and reply back to his taunts. Somebody who literally built his empire from scratch unlike Trump and completely immune to his taunts and rants.

    Trump went so far as to abuse his presidential powers to make things difficult for Amazon in US. One example is asking USPS to charge Amazon at double rate and even suggested that Amazon should be made to fund the entire budget of USPS. You think there could even be any kind of dialog between the two. Not a chance.

    More than likely, Its just Aamzon and Flipkart lobbying hard, meaning large amounts of money involved. This is election year after all.
     
    #87 Lord Nemesis, Jan 6, 2019
    Last edited: Jan 6, 2019
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  8. blr_p

    blr_p Well-Known Member
    Veteran

    I was thinking this could be a pre-emptive move in this regard against the US. But i think the domestic lobby argument is stronger. This policy isn't completely formed they are making it up as they go along.
    --- Post Merged, Jan 6, 2019 ---
    So ? and what about other labels.

    The article makes it sound like its a complete U-turn.

    Is that true ?
     
  9. adventureguy

    adventureguy Well-Known Member
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  10. Lord Nemesis

    Lord Nemesis Overlord
    Veteran

    Its already known last year itself that Reliance is venturing into e-com space which is why I said that this regulation is a preparatory ground work to put the competition at a severe disadvantage by the time reliance enters so that they can immediately capture the market. Kind of like how JIO was allowed to give free services in the name of testing their network while the competition would be penalized for doing something like that. Also, the nitty gritty in the regulations didn't at all look like the work of offline retail lobby at all and nor was it handiwork of govt bureaucrats. It literally looked like it was drafted by reliance legal team. The 25% rule in particular. This is to ensure that Amazon and Flipkart can't have any exclusive sellers on their platforms to give them an edge. They are also trying to kill all other advantages like free shipping, priority shipping etc.
     
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  11. Mr.J

    Mr.J Well-Known Member
    Adept

    How the hell is 25% rule is enforced? As a customer, my shopping is like 80% online cause I prefer that. And I'm sure there are many others like me. What are non-Reliance entities are supposed to do in this case? Keep 75% of their stock spread in outlets and malls or something?
     
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  12. yashvisent

    yashvisent Active Member
    Disciple

    Well just like I had mentioned in my earlier post.

    Now it almost proves that the PM is on the pay-roll of Mota-Bhai.
     
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  13. Lord Nemesis

    Lord Nemesis Overlord
    Veteran

    I have not gone into details, but I think the 25% rule is also to prevent exclusive selling on FDI based market places. Even if its not specified like that now, they will change it later. So, 25% in Amazon, 25% in Flipkart and 50% on Reliance if not in offline retail. There is no need to sell offline.

    There are many small scale sellers who operate on one single platform to keep things simple and optimal. They don't have the logistics to be on multiple platforms, let alone operate offline. So, if the 25% rule is only for FDI marketplaces or made so in future, they can technically push many sellers towards Reliance.

    The Ambani family has a proven track record of using political clout for disruptive tactics. In the present scenario, They literally can't survive Amazon without using every bit of his clout to extract every ounce of unfair advantage.
     
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  14. OP
    OP
    6pack

    6pack Well-Known Member
    ex-Mod

    Amazon is buying MORE retail chain now along with some Indian company to ger a foot in brick and mortar land. Motabhai forgot American dollars have more value than Indian Rupee. lol.
     
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  15. Mr.J

    Mr.J Well-Known Member
    Adept

    In India, laws have more value than Dollars and motabhai have lawmakers in his pockets.
     
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  16. Julian

    Julian om nom nom
    Veteran

    Bharatiya Jio Party ?
     
  17. OP
    OP
    6pack

    6pack Well-Known Member
    ex-Mod

    laws don't have any value. in this thread itself, the law was changed drastically in just 2 weeks or so according to the amount of money falling into politicians laps. bezos can buy out more indian politicians than motabhai if he feels like it.
     
  18. adder

    adder Well-Known Member
    Adept

    No idea how much motabhai is worth but Bezo is going to be poorer by as much as 50% after is divorce is finalized.
     
  19. Lord Nemesis

    Lord Nemesis Overlord
    Veteran

    About a little over half of Bezo's worth after the divorce is finalized and he loses 50%
     

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