11-09-2017, 12:38 PM
There is a lack of adequate clarity in the government's FDI policy and this has delayed the entry of retail giants like Wal-Mart, Ikea, Tesco in India. As a result, existing domestic retailers in the country are competing with each other. This retail competition has taken on a new form over the last few years. The new competition is about capturing the online sales space in the country as much as possible. This is because the growing reliance on computers from the Indian middle class segment has given an opportunity for the online retail business in India to be popular. The Internet has transformed the retail experience for consumers by activating their emotions and awakening the desire to buy through images, videos, virtual proofs, real-time feedback, free home delivery and ownership of products at discounted prices. Clearly, this new trend in consumer buying patterns is opening up new avenues for retailers to sell their product over the Internet, but at the same time it is becoming a serious threat to the conventional model of product sales through physical stores.
As a result several small retailers of stores have come together to protect their rights and have urged the government to protect e-commerce companies. Most of these conventional retailers are being affected by the predatory prices made by online retailers. This predatory price is helping these online retailers to provide goods to consumers at a very discounted price which in turn helps them to replace their counterpart in terms of doing business.
As a result several small retailers of stores have come together to protect their rights and have urged the government to protect e-commerce companies. Most of these conventional retailers are being affected by the predatory prices made by online retailers. This predatory price is helping these online retailers to provide goods to consumers at a very discounted price which in turn helps them to replace their counterpart in terms of doing business.