Traders to not supply goods to e-tailers over lesser pricing issue

avi

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Shopkeeper has to pay rent for the shop, electricity at higher rates and also pay the attendants that he employs.
Sorry, that's not my problem.

But you get the option to check out different products, get the product in your hand the moment you pay and even checking the product for DOA, in case of certain products.
In online, you also get replacement with DOA.

A free lancer will be much cheaper than contracting a company to write a software for you. And from what I have heard from my friends in the IT industry, even there the companies charge exorbitantly compared to the work that is being done.
Really bad analogy. Give some freelancer a large project, you will know. I agree 'some' companies charge exorbitantly, but thats the problem within client and company.

To all people who think Amazon/FK/etc is killing B&M shops and so that later they can control prices, what would stop anyone to start B&M shop again with fair prices?
 

flash23

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I personally don't give s**t for those blood sucking "middle men" and dishonest and rude shop keepers.
Most of the times they keep stock of only certain brand only. Once when I had to buy a router I walked in a shop and for Asus router and guess what, the guy replied that he does not stock low quality Chinese stuff. This coming from a guy selling power cords and UPS of god-knows-which brand.
A fair advice these guys is pack- up their stuff and move to lesser urban areas where these sites don't serve and people are apprehensive about online dealings.
On other note WS retail can source all the world who cares for this two bit association of greedy scum bags.
 

rahuljawale

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If I am not wrong, Ezone is the Electronics arm of Future Group which also own HomeTown brand of furniture shops.
 

swatkats

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After all the repeated discussions on the same subject, I think there should be healthy competition between online and offline channels.
Yesterday i did inquire with few B&M about their pricing, Seems Distributor is main culprit here with Different wholesale price for BM and E-retail.
E-retailers platform are forcing to sell products with a minimal profit which turns out to be the seller problem and offline channels shouldn't care about it. They move away from their traditional business plan and try to cope up with the competition.


If I am not wrong, Ezone is the Electronics arm of Future Group which also own HomeTown brand of furniture shops.
Yep.
 

rahuljawale

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@kidrow, I sympathize for you.

On the other note, B&M shops can also become part of the supply chain of the Online Shops and provide pickup services to buyers in a certain area. That way B&M continues to make up for lost sales and also maintain their business by directly interacting with Customer. They have better chances of selling more stuff (cross-selling) when a Customer walks-in for pickup. They can lure the Customer by attractive displays, Good Service, freebies etc.

In a way this is a Win-Win situation since a Customer does not have to wait for item to be delivered and can yet enjoy the benefits of buying online. I can not say for you all but I for one enjoy buying in stores. :woot:
 
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swatkats

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^but instead they become cry babies
I don't close my cosmetics shop just because Health & glow in my area is offering 15-20% discount on the same thing. What i should do is.. Source the same product in Bulk by increasing my buying quantity. Customer will be loyal to you.

PS: The place from where i buy shampoo and Sunscreen started doing this.
 

rahuljawale

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Whenever a competing industry emerges, it cannibalizes poorly performing part of the rival. Consolidation (read take-overs, chain forming) of the losing Industry will happen and it will emerge stronger and before and better equipped to take on the fight.

Take an example of Automotive Industry , Premier, Hindustan Motors, Maruti had free run before 1991 reforms, but domestic manufacturing held its own. Premier was shut down due to various reason, HM had to go into JV (joint ventures) with Isuzu, Mitsubishi, General Motors. Maruti is doing very well and is number one at the moment.
 
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raksrules

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I agree about the local pickup thing. People love to get products as soon as they order. So when I go online to order something and punch in my address and pincode, website can suggest me that "xyz item is available for pickup at abc store near my address, would I like to pickup myself?" If I chose yes then payment is done to website and I pickup from store.
Obviously the websites will need to tie up with lots of such stores and their inventories need to be in sync.
 
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Kilroyquasar

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(an off-topic, but perhaps still an on-topic for this thread) savour this - y'day, i saw the infamously-famous naaptol selling this on TV, graciously offering the 'technological marvel' to unaware & unassuming TV-viewers "for 999/- only!"
"so, hurry! book your case(s) with naaptol soon, and get yourself swindled first, earlier than others, before the stock gets exhausted!"
there's no dearth of avenues to get oneself royally duped & rooked, online or offline. :sour:
P.S. - the most hilarious part of the sale-commercial - the manner in which the hostess was extolling the supposedly 'cutting-edge technical aspects' of the product, as if the product was (being) launched after years of R&D at some IIT, to alleviate the sufferings of the hapless victims (with their drenched cards) of rainfall in this country.
am quite sure that the hosts of such commercials, when new, would be spending many bed-time hours shuffling in their beds sleeplessly, ridden with guilt on having to work brainlessly & unethically in/for such con-commercials!
 
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mrmash

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^ similarly (probably off topic but still here goes) a few months ago I saw an ad on TV of some tele shopping company which was selling some sarees with MRP of 1000/- per saree and giving discount and selling it for 600/-
Now I have a saree shop and we had priced the same saree for 495/-, and we had a comfortable margin in it even if the customer asked for some discount.
The point being, the customer can get duped anywhere, be it online or offline. If the customer doesn't have sufficient knowledge regarding the product, the people selling them will always take advantage of that fact.
 
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blr_p

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After consolidation there will be 3-4 serious players in market and by that time they will almost finish the business of small Brick and Mortar retailers. At that time, using their command on market they will dictate the pricing.
When exactly is this so called consolidation going to happen ?

I usually get books from my local book shop, fk or amazon are little cheaper but i can walk in and out immediately or i tell him the ISBN number and he gets them. The only time i use the online sites is when he can't get them.

A healthy competition is good for end users like me, but the current predatory pricing model is not healthy and is gonna affect us in long term. I wish I am wrong.
It's the way of the market, been happening long before online sites began.

Too long in this country the govt meddles in the affairs of the market, distorting prices. I am interested in a world where the goods chase the customers and not the other way around. It could be said the US is the only country where this holds true but that doesn't mean we can't improve.

What you're advocating is a lobby of 40 million traders holding 500 million to ransom. It sunk fdi in retail and it threatens to do more. Preserve the same non-competitive affairs and lack of choice. Why lack of choice because these guys will only inventory stuff they can sell. They won't get stuff that their customers don't want. So you end up with a situation where you are forced to import from abroad because for some reason you are unique. Just try and stray from the beaten path and you find your choices reducing to nil very quickly.
 
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