The government’s new e-commerce policy, which restricts online platforms like Flipkart, Amazon and others from directly or indirectly influencing the sale price of goods, is expected to put an end to deep discounts used by these companies to draw business to their websites. This means the days of billion dollar discounts and dhamakas are virtually over. The only discounts that will be permissible will be those offered by manufacturers. E-commerce companies have been burning investor’s money to offer deep discounts in order to gain traction in the market. As a consequence, traditional brick and mortar outlets began to feel the heat. Larger conglomerates like Samsung and Sony struggled to work their way around discounts after retailers came together to protest against predatory pricing. E-commerce companies will now have to find a way to work around the restrictions in order to retain their customer base. Also by blocking 100 per cent FDI in inventory-based e-commerce, the government has prevented Amazon from leveraging its billions to overwhelm local players. The policy is aimed at creating a level-playing field between brick and mortar outlets and e-commerce players, but more checks and balances are required for it to become effective.
Grand flights of 'gut' bandhans
The word “gut” in the title of this article is deliberate. The grandstanding before the budget session of the assembly between the notorious and not so notorious boys of Goan politics was nothing but an instinctive hodgepodge of varied political interests and liabilities. It was their gut feeling “ time to come together! Babush Monserrate’s unimpressive victory in the CCP election furthered this devious sprint. The rhetoric was usual “ let’s put the government on the mat.…
