Home / Knowledge / News / Apparel/Garments / Mohandas Pai predicts shake up in e-commerce in 2 years
Mohandas Pai predicts shake up in e-commerce in 2 years
24
Dec '15
Mohandas Pai
Mohandas Pai
Even as online shopping grows exponentially in India, Chairman of Manipal Global Education T V Mohandas Pai has severely criticised the approach of e-commerce players for offering discounts and termed them as subsidies.

He predicted a shake up in the e-commerce space in the next couple of years, or "even earlier".

Pai, a former Director at Infosys, faulted the business model adopted by e-commerce players, saying the model promotes growth without building customer loyalty.

Indian e-commerce majors like Flipkart and Snapdeal are just trying "to grow fast by giving subsidies, which is wrong because there is no customer loyalty".

"And in the last quarter we have seen... Amazon has overtaken them because it has superior technology and better processes. Snapdeal has fallen back," Pai, told a news agency in Hyderabad.

"I think, a very good shakeout... may come, maybe, in the next one or two years. Some of the weaker players will fall," he said.

While e-commerce majors are reporting sales growth of more than 100 per cent, the boom has been driven by persistent advertising and deep discounts, leading to huge losses and prompting analysts to question whether online retail can ever be a profitable business.

Earlier this year, a report by the Indian financial services unit of UBS Group AG said e-commerce is a viable business in India, although online retailers may take as long as five years or more to become profitable and could be overvalued currently. (SH)

Fibre2Fashion News Desk – India

Must ReadView All

Apparel/Garments | On 27th Mar 2017

NYCEDC announces $51mn package for NYC garment industry

New York City Economic Development Corporation (NYCEDC), in...

Apparel/Garments | On 27th Mar 2017

Fynd raises $500K Series A funding from Venture Catalysts

Fynd, an online to offline (O2O) e-commerce fashion marketplace, has...

Apparel/Garments | On 27th Mar 2017

India's fashion market to touch $30 bn by 2020: Report

The fashion market in India is estimated at $70 billion in 2016, with ...

Interviews View All

Veronique Lee
Modavanti

‘Sustainable fashion is trending upwards, slowly but surely, as people...

Amit Jain
Shingora Textiles Ltd

‘In terms of fabric, the fastest growing category for us is a blend of...

Poojaa Kumar Deepak
Zeven

Zeven's performance sports apparel is designed for the Indian body type,...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
March 2017

March 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search