PANAJI:
The announcement, however, is yet to be implemented. But, trade almost unanimously agrees that the retailers of mobile-phones, computer hardware and televisions will really gain as and when central government implements this move.
Felipe Alvares, owner, Prime Electronics, said, “Online retailers like Amazon and Flipkart offer discounts as steep as Rs 15,000-20,000 on LCDs and LEDs. Due to this, retailers like us lost around 20-25% of business on these items in the last few years. Therefore, the latest central government’s announcement is very favourable for us.”
Alvares added, “Customers have been buying TVs and mobile-phones through online retailers also because they can install these products themselves, which is not the case with air-conditioners.”
Brian D’Cruz, manager, Microciti, a retailer of computer hardware said, “Online retailers offer discounts as steep as Rs 10,000 on laptops. They offer high discounts on external hard-disks, ear-phones, bluetooth speakers and printers as well. Customers often come to our store, check the price, but ultimately go to online retailers to buy. That, I think, will stop now.”
Online retailers buy products in bulk from manufacturers. Besides, it is also believed that they share a part of losses, which manufacturers incur by selling products at huge discounts. Due to this, such retailers had actually threatened the very existence of brick-and-mortar shops, which will not happen now.
The other viewpoint has it that the central government’s latest announcement goes against the very principles of free market where people are allowed to price products at whatever level they wish. Whichever way you look at it, it is clear that brick and mortar retailers are breathing easy now.
A retailer of shoes, on the condition of anonymity, said, “We weren’t much affected because of high discounts on online platforms because we provide service like you can always bring your shoes to us, which we send to company’s factory, in case of a defect, which online retailers don’t do. So, for us, the latest announcement doesn’t make much of a difference.”
