After making sure that all the heads roll on Flipkart's Big Billion Day sale. The e-commerce giant seems to have endless problems starting now.
Major consumer brands like Samsung, Sony and LG are planning to boycott or sue Flipkart because of the low prices that were offered to the public on Big Billion Day sales.
According to the report published in the Times of India, one of the top level managers of a secret society said:
"This is a clear case of predatory pricing only to increase traffic on their website and build unrealistic assessments. This is not acceptable and we will ensure that it does not happen again. "
On the large sale of billions of dollars, Flipkart has not only sent heatwaves among customers with one of the lowest prices exposed for the most sought after consumer products. But he made the retail giants believe that their market completely destroyed.
Kumar Rajgopalan, CEO, Retailers Association of India, said:
"E-commerce players have always given low prices and brick and mortar players are aware of it. Online stores are like a mall on the net. Retailers themselves look at omni-retail channels. still early to tell if the discount had an impact on sales ".
Another report published by the Hindu Business line, the operation of Flipkart according to legal norms entered the scene.
"The markets should technically provide only the technology. How have companies like Flipkart achieved such a big sale when they don't have inventories? Clearly, I'm a glove with sellers and would have earned between 5% and 20%, "he said said Praveen Khandelwal, of CAIT.
Another problem that is taken seriously into consideration is that these lower prices offered by Flipkart make it appear that they are buying from the gray market. The warranties are still provided when there is no guarantee even in the gray market.
The most striking aspect of high sales in online portals is the fact that consumers are usually in the 18 to 30 age range which ironically account for most of the sales that India has.
Future Group CEO Kishore Biyani said:
"Our laws do not allow us to sell below the cost price. This against fair trade practices. "
yet to be seen whether sales laws with such low prices are applicable or not. The fact that consumer goods completely boycott Flipkart or not has yet to be seen. What we have already seen that Flipkart has changed the way the Indian consumer stores. Will we remain without money or will we finish the products when we go to buy Flipkart next time?
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