The Threat in E-Commerce Industry, Republic Day Sale Offer
The republic day sale offered by amazon and flipkart are the lollipops which they give to general customers. They usually give discounts on product which no one buys and with the help of these sale they usually do the stock clearance.
It is a win win situation for the e-commerce companies as they gain the trust of their customers by giving discounts on their product which they were unable to sell through there platforms has been cleared because of discounts. No doubt there is a gain of customer in these but the main winner out of these sale are the ecommerce companies.
They earn their profits as well as gain the trust and loyalty of customers as well. But these competitions usually eat up the Indian companies and the foreign companies are earning profit out of it. The only company which is currently surviving in these neck to neck competition is Flipkart but flipkart is also facing a loss of 1crore per day which is not a good thing for any company.
On the other hand the foreign companies like Bestbuy and Alibaba are trying to penetrate in Indian market and with the current governments policy of 100% FDI we can expect these companies to enter Indian market by 2020 which will lead in wiping out of only lone survivor Indian Ecommerce company Flipkart. There is one proverb shark and crocodile can’t live in same water because they both are lethal and kill each other the same applies to ecommerce market as well if we allow all the foreign crocodiles in india it will eat the market share of flipkart which will result in killing of only Indian Ecommerce company Flipkart.
Also see The truth of Diwali Dhamaka Sale