The recent amendments in regards to the eCommerce market in India have opened the space to new players with an opportunity to take a share of the market for themselves. Previous eCommerce portals namely ShopClues and Snapdeal are now graced with the opportunity to rival the eCommerce titans in a relatively level field. One of these ambitious players with a significant amount of potential to make it big in the field is DVCOMM.
DVCOMM is an online website that provides solutions to the technology related problems bringing in advanced technology from leaders around the world. DVCOMM aims to solve the issues that companies and users face when it comes to Information and Technology sector in terms of their distribution facilities. The company converts the needs of customers into efforts and appoints its team of highly skilled personnel that has helped in the growth of the company over the years. The company believes in satisfying the needs of its customers and has a 100 percent record of satisfying their needs from time to time thereby maintaining customer satisfaction and after-sales services. The name of the company is not promoted on the principles of hard marketing. Instead, the company focuses on improving its performance with every problem that it can solve and grow with the help of word-of-mouth and get more referrals from potential customers who heard about their performance and work from the existing customer base. The company is concerned with innovation and customer satisfaction and has time and again proved to provide solutions and live up to its goals and name. The vision of DVCOMM is to get into every doorstep and provide its clients with the latest and advance technology. New E-Commerce Rules As per the new rules implemented by the government of India, companies like Flipkart and Amazon will not be able to sell any more products of companies which they have an equity interest in. The government of India has also released a statement in which it prevents the big online retail giants into agreeing with the sellers. These rules have been in force since February 1. The online giants and retail companies can buy the products in the form of bulk purchases via the wholesale units of their company, and they can sell their products to some chosen sellers who can be affiliates to their firm or companies that they have signed an agreement with. After that, those sellers can sell the products purchased from the online stores to other business entities or directly to customers, usually at low prices to make the purchase more attractive from the customers’ point of view. These rules have been enforced by the government due to the complaints put forward by other Indian retailers as well as traders who believe that these online retailers are exploiting their control and power over the inventory acquired from their affiliates. And by making exclusive selling agreements, they are kind of getting a hold of the market in which they make the products available to the customers at lower prices which attract the customers to purchase with them. A petition was filed against the online e-commerce giant Amazon in October 2018 by the All India Online Vendors Association which alleged Amazon of favoring merchants and vendors partly owned by Amazon itself like Appario and Cloudtail. Another petition was filed against Flipkart by the lobby group in May 2018 which accused the company of violating the rules of competition through selective and special treatment for its selected sellers. This step to ban the giant online retailers from selling directly to their selected sellers is seen as an attempt to cater to the needs and provide benefits to the small business owners and traders. Also, this step is taken just a few months before the General Elections, and it is believed that this measure was taken because the small retailers and business owners form a majority of the voting base for the government. However, the small businesses and retailers suffer due to the intense competition they face by Amazon and Flipkart, and this step shall provide them with some relief. It is expected that this decision might cause a delay in the investment plans and might even compel online retailers like Amazon to create and adopt a more complex business structure. Impact of the Decision A research conducted by PwC which used the estimates given by the industry as well as details made available in the public show that the growth of the online retail sector, tax revenue as well as creation of jobs will be negatively affected if the companies decide to change their business structures to align themselves with the new decision enforced. PwC has not commented upon the report by Reuters and nor does it have any opinion as of now. But as per the research, it is forecasted that the gross value of the products sold online might fall by around $800 million from what is expected in the ongoing fiscal year ending in March 2019. Further, the sales would be expected to decline throughout the next three years, with a loss of over $45 billion according to the data. As a measure of performance, online retailers use the gross merchandise value which is based on the monthly sales online, because they make profits and earn in revenues by receiving the commission from their sellers. Also, it is estimated that this policy decision could lead to creating 1.1 million fewer employment opportunities and also lose out in tax revenues of about $6 billion by 2022. Both the giants, Amazon and Flipkart, have asked for an extension of the deadline of the new policy, but the government has not agreed on the extension. While Amazon has asked for a four-month extension period, Flipkart on the other hand, asked for a six month extension period. Morgan Stanley had forecasted that the Indian e-commerce sector would expand by 30 percent in 10 years (2027) by over $200 billion. As the number of users of the internet in India is constantly increasing, the online retailers have time and again made use of their attractive marketing and discount strategies to lure the Indian public into the online shopping culture for almost everything. From purchasing groceries to purchasing electronic devices, customers have started making use of the online retailing to buy everything they want. This new measure is a step to stop the big online retailers from making use of their attractive discounting policies which hamper the growth of the small retailers.
0 Comments
Leave a Reply. |
AuthorDVCOMM strong industry hold and ability to translate customer needs into actions and a highly professional and motivated team have been the key factors in building an ever-growing list of satisfied lists of customers. Archives
July 2019
Categories |