{"id":16526,"date":"2016-03-30T13:34:41","date_gmt":"2016-03-30T08:04:41","guid":{"rendered":"http:\/\/www.officechai.com\/?p=16526"},"modified":"2016-03-30T13:52:34","modified_gmt":"2016-03-30T08:22:34","slug":"new-govt-regulations-to-prevent-online-retailers-from-giving-discounts","status":"publish","type":"post","link":"https:\/\/officechai.com\/stories\/new-govt-regulations-to-prevent-online-retailers-from-giving-discounts\/","title":{"rendered":"New Govt. Regulations To Prevent Discounts In E-Retail"},"content":{"rendered":"

The Indian online consumer has had a heady few years. Companies\u00a0have mushroomed faster than he could keep track of them, and buoyed by VC funding, have gone all out to woo him – there have been discounts, offers, cashbacks, double cashbacks, sales,\u00a0bonanza sales, and in odd instances, iPhones being sold<\/a><\/span> for a dollar. The Indian consumer has reveled in this environment. He’s taken to e-commerce like a fish to the water, and big e-commerce players\u00a0have attained some skyrocketing valuations<\/a><\/span>. But if the government of India has its way, this party might end soon.<\/span><\/p>\n

In a landmark directive<\/a><\/span>, the Indian government has instructed that e-commerce entities will not entice users to their services through discounts.\u00a0\u201cEcommerce entities providing marketplace will not directly or indirectly influence the sale price of goods or services and shall maintain a level playing field.\u201d, says the ruling from\u00a0Indian government\u2019s Department of Industrial Policy and Promotion.\u00a0<\/span><\/p>\n

\"no-discounts-tm\"<\/span><\/p>\n

This essentially means that discounts, which had become a feature of India’s e-commerce scene, could\u00a0soon be a thing of the past. India’s biggest online retailers, Flipkart, Amazon and Snapdeal rely heavily on discounts for their revenues, and notch up some incredible numbers<\/a><\/span> during their special sales. <\/span><\/p>\n

This move will help offline retailers compete with their online counterparts, who had managed to give heavy discounts thanks to FDI regulations which permitted foreign investment in retail marketplaces like Flipkart. Brick-and-mortar\u00a0retailers had complained that while online companies had access to foreign funds which enabled discounts, FDI was not allowed in offline retail. They had approached<\/a><\/span> the Delhi High Court seeking a level playing field last year.<\/span><\/p>\n

But\u00a0is it too late? Has the Indian consumer grown too accustomed to the convenience of online shopping to go back to retail stores, or will\u00a0his patronage of e-commerce companies\u00a0last only as long as the discounts are\u00a0lucrative?\u00a0<\/span><\/p>\n

You can bet that the entire e-commerce industry is waiting\u00a0with bated breath to find out.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

The Indian consumer has grown accustomed to discounts offered by online retailers, a new government ruling says that discounts are essentially not allowed in e-retail.<\/p>\n","protected":false},"author":2,"featured_media":16527,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[254,46],"tags":[319],"class_list":["post-16526","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-startups","category-stories","tag-ecommerce"],"yoast_head":"\nNew Govt. 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