Policy changes, JioMart pose rising risks to global e-comm players in India: Fitch
PTI, Jan 10, 2020, 1:40 PM IST
New Delhi: Fitch Solutions on Friday said international e-commerce firms in India face the risk of increasingly coming under pressure in the current year due to key policy changes and Reliance Retail venturing into the digital market space.
While an e-commerce policy is still in the works, it is likely to take effect in March, Fitch Solutions said in a statement.
In addition to the earlier draft guidelines, which ban global online retailers from selling products from companies or affiliates in which they own an equity interest, the government is examining the possibility to set up a regulatory authority to resolve disputes between large online retailers and small enterprises in the country.
“Despite the continued investment, our view is that international e-commerce players (including Amazon India and Flipkart) face the risk of increasingly coming under pressure in 2020 due to key policy changes and Reliance Retail entering the digital market space with new e-commerce platform JioMart, in January 2020,” it said.
Smaller retailers have been claiming that companies such as Amazon India and Flipkart are pricing them out of the market.
“Under the new policy, international e-commerce companies in India would be banned from influencing pricing, employing unfair promotional activities, as well as misrepresenting the quality or features of their product offering,” Fitch Solutions said.
E-commerce players will also be compelled to store generated data on servers in India. This would put an additional burden on international players, which will be urged to establish local centres for the collection and storage of their data.
Fitch Solutions further said that the days for deep price promotions on online platforms are likely to be numbered in India.
“In addition, we project a significant acceleration of online purchases of food and drink products in 2020 and the remainder of our medium-term forecast to 2023,” it added.
Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.
Mangaluru: Man loses Rs 1.93 L in KYC scam
Police in K’taka arrest seven people for transporting buffalo meat, 14 Sri Ram Sene members for assault
World’s largest Hindu temple outside India in modern era to be inaugurated in October
Related Articles More
Deadline to add nominees for mutual fund investors, demat account holders ends on Sep 30
Tata Motors inaugurates registered vehicle scrapping facility in Surat
LIC to appeal against GST tax notice of Rs 290 crore
Sale of iPhone 15 sees 100% growth versus iPhone 14 series on day 1
IT conducts search operations at Lux Industries premises
Rahul Gandhi to launch rural housing scheme in Chhattisgarh on Sep 25
Cauvery issue: Agitation continues in K’taka against the release of water to TN
Security forces bust 2 terror modules in J-K, arrest 5 ‘hybrid’ terrorists
BJP protests against Haryana Cong chief, demands apology for ‘derogatory remarks’ against PM Modi, Khattar
UP: Fake currency notes with Rs 14 lakh face value seized, 3 held