Flipkart is apparently afraid of Amazon, Says not in favour of FDI

Is Flipkart really afraid of Amazon?

  • Yes

    Votes: 56 87.5%

  • No

    Votes: 8 12.5%
  • Total voters
    64
  • Poll closed .
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Is it just me who thinks FDI in retail right now will totally demolish us. We need some good policies by govt. for our manufacturing sector. Once that is sorted out then we can have FDI in retail.
 
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I personally think Amazon did whatever they could with the money they bought last year > Build warehouses, Setup logistics.
They even maintained control over their service but from 3-4 months, their dispatch times are slow, no control over seller, piracy material are being sold.
This huge funding should help them improve their standards and expand their own logistics. One shouldn't forget even flipkart had trouble dealing with sellers in first 6 months when they switched to marketplace.
 
Switch said:
Is it just me who thinks FDI in retail right now will totally demolish us. We need some good policies by govt. for our manufacturing sector. Once that is sorted out then we can have FDI in retail.
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I totally agree with you Switch. It is a bad move for an economy like ours.
I gave my views on this in another thread. Govt is looking to remove the 30% local sourcing restriction clause from FDI in single brand retail. I am afraid that would ruin a lot of small businesses.
 
baccilus said:
Indian companies will never become mature and capable unless they have real competition. They "NEED" competition to become better. I will give you an example so that the situation becomes clearer:
I am a cyclist and like many other serious cyclists, I am forced to buy imported cycles because the ones being produced by the Indian companies are really really bad. They use poor quality and heavy frames and the worst and cheapest possible groupsets from big companies like shimano (so that they can advertise it). They don't bother with the sizing either. All good bicycles come in multiple sizes according to your height and inseam. It is like going to buy clothes and finding just one size. When riding for hours, bicycle fit is crucial. A typical road race goes on for hours. But Indian companies produce just one size.
Once cyclists started importing cycles from abroad these companies like Hero, BSA, etc used their political clout in Punjab to get the duties raised on bicycles to astronomical levels in 2012. They didn't improve themselves by even one percent. They are still produce garbage. They will not improve till they are forced to do so.
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They think Quantity Wise and not Quality Wise thats the reason most of the indian products lack charm..
 
rdst_1 said:
I totally agree with you Switch. It is a bad move for an economy like ours.
I gave my views on this in another thread. Govt is looking to remove the 30% local sourcing restriction clause from FDI in single brand retail. I am afraid that would ruin a lot of small businesses.
Click to expand...

Well that would be terrible cause as of now we buy inferior(Indian) and Chinese products at moderate prices. Once that happens we will actually be buying all inferior Chinese products at high prices(Once the Big Fish eats away most of the small fishes).

My argument is not about defending Flipkart. Heck I don't even like Flipkart or for that matter lot of big players like Snapdeal, Amazon etc because all they are doing right now is catering to a select few people. One who makes purchases through the internet. Eventually as the customer base will increase and the local shops will go down. But there is still time in that.

What I am actually worried about is then setting up shops in India and selling away Chinese products and not putting anything Indian in there. What will happen to local market. Our manufacturing sector. It will die down. And once that starts happening what will our kids do. The one who are educated will get a decent job(hopefully) but what about our skilled labour. What will their children do. Who will make those authentic Rajasthani chairs or that Pashmina Shawl. A factory in China or a man in a small hut in India. Why are looking to support people like Amazon or Walmart or IKEA. What will they do for our economy.

Right now the chunk of buying power is with the youth and the youth doesn't realise that. By the time they will realise whats happening most of the small units would be shut or would be selling these things on such prices that one would not be able to afford it. Heck its happening right now. We need our govt. to work for the manufacturing sector. We need Roads, Power, Low Tax Zones, Better taxation policies, Cheaper distribution system etc. Why doesn't big shots invest in those in India. We don't mind them taking our profit away from that. Why are we not making mobile phones. Is it that we don't have the skill or Is it that we are not good paymasters or Is it that govt. doesn't have policies where if once decides to open up a unit in India he has to run after every god damm deptt. to get a NOC. Or he has to bribe in big numbers to get a bigger power connection.

They say in China when you go to the govt. to open up a new unit they don't ask you how much will you invest or how much land do you need. They ask you how many people (local) will you employ. In India they tell you to get so much land you need to pay so much under the table over the lowest land rate(Reliance power project in Noida/Dadri).

I know this is not related to this topic but on the whole it is. Its good Amazon is planning to pump in 2 Billion. Its great till the time they sell Indian stuff too.
 
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They can't ban Amazon. Competition is healthy. FK is just insecure but they have no choice.
 
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