The festive season is in full swing on online shopping platforms like Flipkart and Amazon, where e-commerce giants are rolling out enticing offers and significant discounts across a wide range of products. These exclusive deals often surpass those available at the companies' physical stores and showrooms. This raises the question: how are these companies able to provide such competitive prices?
With substantial discounts offered on e-commerce platforms, a growing number of consumers are opting to shop online rather than visit local markets, leading to significant losses for brick-and-mortar retailers. In response, the Confederation of All India Traders, a prominent trade body, has voiced its opposition to this trend, revealing the underlying truths behind the massive discounts provided by these online retailers.
On platforms like Flipkart and Amazon, it is reported that companies are sourcing goods directly from manufacturers, resulting in lower prices. However, trade unions have dismissed this assertion, claiming that e-commerce companies are setting unrealistic prices and investing heavily to provide steep discounts on products. The unions allege that this situation has given rise to a grey market for mobile phones, raising concerns about fair competition and market integrity.
Kailash Lakhyani, founder and chairman of AIMRA, has alleged that certain brands and banks are conspiring with e-commerce companies to provide substantial discounts. In response to these claims, AIMRA is calling for the suspension of operations for Chinese mobile phone manufacturers OnePlus, IQOO, and Poco, citing their alleged collusion with e-commerce platforms as a primary concern.