ICEA declared that this comes at the expense of offline retail business as there is substantial predatory rates by e-commerce companies
Market body India Cellular and Electronic Devices Association (ICEA) said that last month, e-commerce companies have actually accounted for around 45-50 per cent of total handset sales in India. The market body alleged that this comes at the cost of offline retail service as there is extensive predatory pricing by e-commerce companies.Predatory pricing”In
the United States, the smart phones sale by means of e-commerce is most likely 2 per cent. In India, it has reached 45-50 percent as the e-commerce business’s pricing is extremely predatory,”Pankaj Mohindroo, Chairman, ICEA informed reporters at the launch of a joint report with McKinsey E-commerce business are doing something which they are not
expected to do. That is a huge challenge,”he added.Mohindroo further said that e-commerce industry is quickly growing in the country, but it is at the cost of offline retail sector.Impact on retail shops He notified that around 45 thousand store have actually been closed down in the past year, which is a major cause of issue. The association has carried out a small research study in the Noida area of NCR and found that there were 1,148 mobile stores a year ago and now there are 950 stores left.During the ongoing celebration season, e-commerce companies, like Flipkart and Amazon, have actually sold cellphones with heavy discount rates of up to 62 per cent.Mohindroo said the members of ICEA are
themselves divided on the matter however the association is raising this matter for ethical and ethical reasons.The joint report by ICEA and McKinsey launched at the event identified the gaps in method the mobile phones sector in India accomplishing the status of worldwide powerhouse. It also made recommendations on changing the growing mobile production eco-system in the country.