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

Md Siddiqur Rahman, president, BGMEA, addressing a press conference with other dignitaries. Courtesy: BGMEA

Apparel/Garments | On 29th May 2017

BGMEA asks govt for 5% incentive for 2 years in Budget

The Bangladesh Garment Manufacturers and Exporters Association...

Textiles | On 29th May 2017

Special package creates 7,50,000 jobs in garment sector

The special garment package of Rs 6,000 crore that was introduced by...

Textiles | On 29th May 2017

Tintex, Bruckner bring new effects to knitted fabric

The textile company Tintex has joined hands with the system supplier...

Interviews View All

Krishnanand Tripathi
Textrade International Ltd

We believe in vocational education for entry-level employees, offering...

Marazban F Velati
Sutlej Textiles & Industries limited

No training can be effective till the candidate believes in it.

Anavila Misra
Anavila Collection

Fashion shows are also encouraging and highlighting sustainable fashion

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

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

news category


Related Categories:
May 2017

May 2017

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

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search