Price wars in India: Retailers write to CCI; accuses e-tailers Flipkart, Snapdeal of predatory pricing

[Hulk]

Sources:

• http://timesofindia.indiatimes.com/business/india-business/Price-war-Retailers-write-to-CCI-accuses-e-tailers-Flipkart-Snapdeal-of-predatory-pricing/articleshow/25243642.cms
• http://www.thehindubusinessline.in/2004/10/20/stories/2004102000091100.htm
• http://wewillact.com/about.html
• http://therodinhoods.com/forum/topics/competition-commission-of-india-must-take-some-action-against-the

[Look at the attached file for the letter]

 

News:

 

A few Banglore based retailers have come together and formed the 'We Will Act' [WWA] under Hari Rastogi, its founder; and have sent letters to the Competition Commision of India as well as manufacturers complaining that online retailers are selling below the MRP which he feels are unethical business practices. On their website, the WWA has specificed ways to harass these sites who offer cash on delivery by

1- Let's place Cash on delivery orders for Rs.40000.00 [around 700USD] rupees items every alternate day and cancel when delivery boy comes to delivery. This will make them to lose their fat by Rs.1000.00 [around 16USD] at least. [Their current minimum price for a free CoD [no charge for delivery] is Rs. 500 INR which is 8USD]

2- Whenever you are free call to their customer care and waste their time. This will increase their customer care expenses.

 

 

 

You can catch updates from Hari Rastogi over here https://www.facebook.com/hari.rastogi.3

 

 

My view: 

This is simply pathetic as these guys are just whining as their profit margins are shrinking. Flipkart is probably one of the better stores out here due to their 30 day hassle free return policy which is one of the best I've seen and these guys are going to ruin it by abusing it. The traditional brick and mortar shops make a huge deal when returning anything here.

 

MRPs were introduced to be a maximum retail price so consumers don't get ripped and this accounts for a healthy margin for shops. Flipkart has one if the biggest collection of games and books, something that cannot be kept in brick and mortar shops due to storage constrains and also prices significantly better, so this is just anti consumerism in my view. If these guys are hell bent on charging on the MRP of goods, then best of luck in trying to make yourself stand out from the crowd. Even if shops charge below the MRP for most, if not all goods and still maintain a 50-70% margin. This is just anti competitive. I hope Flipkart implements a 3 strike system where more than 3 failed CoD orders result in a blacklist of that IP and address. Their customer care is one of the best I've seen and these guys are just trolling now. Wheres that blasphemy law when we need it?

 

 

I would love to hear what you think guys. I am highly against this action by these stores; as this is clearly a case of the survival of the fittest, and these shops are clearly the latter.

[ciprian97pop]

So, you may think that I'm rude but:

do you really think that someone would actualy read all of this?

 

only one source, a small quotation and your opinion. this would be enough:)

and tags. don't forget tags

[Hulk]

So, you may think that I'm rude but:

do you really think that someone would actualy read all of this?

 

only one source, a small quotation and your opinion. this would be enough:)

and tags. don't forget tags

Edited. Thanks! Since I'm new to this, I'm open to any suggestions which can help improve the way I deliver this over time 

[nicehat]

I dont know whats going on here  :huh:

[Hulk]

I dont know whats going on here  :huh:

A few physical stores have complained to the government and companies that online retailers are charging lower than the maximum retail price which they feel is unethical and unfair. I hope this helps!