CAIT asks brands to clarify who is giving discount on Amazon, Flipkart
| Date :14-Oct-2019 |
Business Bureau :
In furtherance of the meeting held between Confederation of All India Traders (CAIT) and Amazon and Flipkart on October 11 at Udyog Bhawan, New Delhi. CAIT on Sunday sent communications to all premier brands whose products are bring sold on e-commerce portals of both Amazon and Flipkart asking them to clarify whether deep discounts on various products on Amazon and Flipkart are being offered by them as claimed by both Amazon and Flipkart in the said meeting which was convened by the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce under the directions of Piyush Goyal, Minister of Commerce and Industry. CAIT National President B C Bhartia in communication to brands said that on question of offering deep discounts on various products on their respective portals, both Amazon and Flipkart categorically said that the portals are not offering any discounts and it is various brands which are offering such deep discounts and Amazon and Flipkart have no role in discounts on their portals.
In another question, both Amazon and Flipkart said that it is the brands which give their exclusive products to sellers and they have no role on it. “This is their official statement given in an official meeting convened by the Ministry of Commerce-add both leaders,” he further said. Bhartia said, “Such a statement by Amazon and Flipkart which reflects dual policy of the brands by having different sets of price and discounts structure both for off-line and on-line trade which amounts to discrimination and leads to unfair business practices not allowed under business norms.”
Elaborating the crucial role of traders, he said, “Traders across country are working with brands since decades have every faith and trust on brands as far as their price policy is concerned.” However , since responsibility of discounts have been shifted on brands in a most authorised manner and in a meeting convened by the Government, the Confederation of All India Traders take a serious note of it. Asking a clarification from brands, Secretary General of CAIT Praveen Khandelwal said to each brand that “since your brand is also being sold on Amazon/Flipkart e-commerce portals, we shall be grateful to you to clarify whether discounts offered on these portals are offered by you?
This is necessary as we will take up this matter further with top leadership of the Government.” Confederation of All India Traders also expressed its intention to convene a conference of brands in New Delhi and have request them to confirm participation of your esteemed organisation. Khandelwal said that crores of traders across country have a major contribution in present valuation of the brands by rendering yeomen services and putting huge investments by delivering goods in every nook and corner of the country since decades in capacity of distributors, wholesalers, semi- wholesalers, retailers and in various capacities and have built a strong supply chain in the country which is world’s largest supply.
Khandelwal said, “Being apex body of traders of the country representing about 7 crore traders through more than 40,000 trade associations across country, we are deeply concerned on this very important and critical issue which has created an adverse impact on off-line business throughout the country and we are determined to take this issue to its logical conclusion through whatever lawful course available with us. Therefore, your clarification on deep discounting and exclusivity assumes much significance to air out the confusion being raised by official statement of both Amazon and Flipkart.”