New Delhi, Nov 7: It has been turbulent times and the online market is in news as the offline channels claim that they were following unethical practices with protests being held across the country. Meanwhile, online places on their part have been claiming that they were merely marketplaces and only connect buyers with third-party merchants on their websites and mobile platforms.
Along with the partners filing complaints with government agencies to investigate their online channels’ business model, Enforcement Directorate is also probing for possible violation of FDI laws.
Reacting to the ongoing offline traders protest and allegation, Michael Adnani, Flipkart’s vice president – retail & head – strategic brand alliances, felt that instead of fighting ecommerce they should become a part of it.
CT: The offline traders are demanding government to investigate the e-tailers’ business model and carried out protest nationwide. How would you react to such developments?
Adnani: Yes, we have been hearing about offline traders protests. The dotcom boom in India is fairly new in India, I have seen these times in markets like US. Its not different what happened in the US when lots of companies in the brick and mortar and offline went through the same pains. I would call it, a sheer ‘frustration’ of the traders. These traders rather than blaming somebody, have to realize that ecommerce is here to stay and will grow exponentially. So rather than fighting it they have to become part of it.
CT: But traders are open to any fair competition. They are fighting against the predatory pricing offered by online marketplaces. Does Flipkart indulge in predatory pricing?
Adnani:I don’t believe there is such a thing called predatory pricing. We price based on what the customers is willing to pay. There are no low prices except the special shopping days like ’Big Billion Day’, which we will have on certain days in a year. To celebrate and to appreciate our customers, we will call it customer’s appreciation day. If we did that everyday, it will be a different story.
Traders should understand that our survival is dependent on the customers joy, happiness and satisfaction and delight of buying. One day in a year, we celebrate a special day with a limited quantity. Now, if these people think that our 10 hours of business has put a dent in their business, I have a serious problem. Therefore, that is just an excuse, these traders are lazy and not getting educated that we are a marketplace. Every single one of these people who are complaining, I invite them to come and sell products on our platform. As long as the product is authentic, fulfills the needs of our customers and keeps up with our standards, they can grow their business.
A trader who has customers within a radius of 10 kms, now they can sell their products to a customer 1,000 kms away. They can continue selling in their own space, but they have this option available to them, why aren’t they are using? Instead of spending energy in all these unnecessary and useless activities, they can educating themselves to grow their business.
In my view, we are giving these people a level playing field.
CT: There has been complaints that several associations have approached you, why haven’t you responded?
Adnani:We have tried to connect with any association who reached out to us and have explained them. We can only answer if these traders ask us that how can they grow their business on e-commerce platform. If the question is why do you sell a product at the price and make customers happy, then I am not going to respond to that. We are building our capabilities to make these sellers profitable. At the end of the day, we are just a marketplace. We are dependent on these sellers for our growth
CT: What is future of retailing in India, how Flipkart is getting affected by these protests?
Adnani: Future is going to be the convenience of the people and joy of shopping. We are working hard to make it more delightful experience for our customers. These traders have to make changes to their business model. We have not denied our services and partnerships to these sellers. If these sellers are not in business, we won’t be in this business. We want them to be stay in business.
Rather than arguing about it they should get educated and then make a decision after understanding it. I have spoken to many traders and explained then what we are about. Now they are on board, selling and no longer complaining. Our marketplace has grown hundred fold in last several months and we are building capabilities to support these retailers. We don’t want them to become e-commerce savvy and build their websites. We will make bring them profits. When they grow we will also grow and later will have little commission, but they have to reach out to us. Without knowing, what we are about and accusing us is not lead to any end.
CT: How challenging it would be for marketplaces once they come under the purview of regulations?
Adnani: I don’t think it will be challenging as online marketplace is fairly new to India. But before framing regulations my only request is understand the marketplace. Without understanding us and making it regulated doesn’t work. I think authority should look into our business model and finding it out. My experience has shown that this will continue to grow and I want to see more sellers on our platform to help us grow and at the same time give the best possible price, service and quality products to the Indian customers.