Govt to examine e-commerce policy end to friction between online and offline retailers

India is witnessing growing discord between online and offline retailers over heavy discounting. Last October, traditional retailers protested against Flipkart’s Billion Day Sale as they were being hurt by its alleged predatory pricing.. Following this, Amazon’s October 10-16 Diwali Dhamaka Week was subdued affair with sharp discounts were restricted to stock clearances and products sold exclusively on the site. The complaints from traditional retails has compelled the government to examine e-commerce policy.

In order to steer clear of the war between online and offline retailers, consumer brands may soon ensure that their products on e-commerce platforms such as Flipkart and Amazon are different from those retailing at traditional brick-and-mortar outlets.

Ashish Jhalani, Founder of advisory and consultancy firm E-tailing India said that segregating the product portfolio is a middle path that will benefit both online and offline players. In fact, some of the larger brands are looking at manufacturing different models and products for online and offline distribution.

Textile major Arvind, which owns brands such as Arrow and Tommy Hilfiger, had launched a web-only custom clothing brand called Creyate last year. If the dual channel retailing is successful, more companies may consider different products for online and offline channels