“DIPP has further clarified, that marketplace operators cannot participate in pricing or inventory models through any permissible structures like B2B wholesale, group company structures, etc, thus removing all ambiguities in the interpretation of the policy,” CMAI president Rahul Mehta said in a press release.
Additional clarification on restricting ‘exclusive’ product deals including private labels etc, further reaffirms the policy’s intent to not allow any FDI in ‘inventory based e-commerce’, Mehta said.
“With these clarifications, e-commerce marketplaces will only act as facilitators of the transaction and not be responsible for the actual product. All product sales facilitated by marketplaces will be a contract between the customer and the actual seller.” Mehta said.
The policy further mandates filing of statements by marketplaces, to affirm compliance of rules. “This new clarification will bring much needed level playing field for sellers on marketplaces. With complete restriction on marketplaces to participate directly in retailing, the policy will give Indian companies the opportunity to build stronger retail models and avoid channel conflicts,” he added.
According to Mehta, Indian companies will get the opportunity similar to what the Chinese companies received initially, which led to building of giants like Alibaba, Tencent and JD.
He, however, requested the government to appoint monitoring agencies to ensure compliance to norms and initiate action against marketplaces that flout the policy. (RKS)
Fibre2Fashion News Desk – India
Textiles | On 15th Dec 2019
Global economic growth is likely to fall to just over 3 per cent in...
Apparel/Garments | On 15th Dec 2019
The International Organisation for Migration (IOM) and H&M Group have ...
Textiles | On 15th Dec 2019
Founder's Hemp and Nufabrx have joined hands to reinvigorate the...
Zenitex Mill Pvt Ltd
Full of green energy
Dolphin Jingwei Machines
Taxation policies need to be made simpler
Athleisure is the current buzzword in fashion
From the very beginning, Loris Bellini's aim was to produce dyeing...
Petit Royal, co-founded by entrepreneurs <b>Ritu Ajbani and Neha...
Japan's Epson, a leader in digital textile printing, Italy's For.Tex, a...
A team of engineers at the Vanderbilt University has designed a smart...
<div>RocketLife, an award-winning developer of breakthrough visual...
S Ziya Gumuser
Turkish nonwoven manufacturer Teknomelt has been around for only seven...
Yash P. Kotak
Bombay Hemp Company
One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...
Silvia Venturini Fendi
"Yes, my confidence and positive attitude are my strengths and should be...
Gildan Activewear SRL
Gildan Activewear, a manufacturer and marketer of branded clothing and...