Competition and Industry News
Digital breakthrough: Consumer durables brands finding ways to expand reachedit
E-commerce and the growing influence of digital on purchase behaviour for consumer durables is offering brands such as Prestige, Crompton & Greaves, Philips and several local and hyperlocal labels a new way to expand their footprint. By using the digital influencer route or working closely with local retailers to help first-time internet users discover and buy their brands.
Publication: Business Standard
Date: 18 July 2019
E-commerceStartups face 200% fine for non-compliance with govt norms on angel taxedit
In a move to encourage only genuine start-ups, a penalty of 200 percent has been introduced for not complying with the government’s conditions while availing angel tax exemption. The penalty pertaining to under-reporting of income — introduced through an amendment to the Finance Bill passed by the Lok Sabha on Thursday — is aimed at deterring the misuse of angel tax exemption, allowed in the Budget for FY20.
Publication: Business Standard
Date: 19 July 2019
Angel taxStart-upsBefore store opens, Ikea to go online in Mumbaiedit
In a global first, Swedish furniture chain Ikea will launch online shopping services in a market — Mumbai — before opening physical stores. In addition, the Netherlands-headquartered retailer will open small neighbourhood stores across India as part of its overall strategy to reach younger customers. Ikea, known for its vast network of self-service, out-of-town megastores measuring 4-5 lakh sqft, will launch stores sized 50,000-1,50,000 sqft that will enable it to penetrate deeper into the domestic unorganised furniture market and take on local retailers, including Urban Ladder, Pepperfry, Godrej and Fabindia.
Publication: The Times of India
Date: 19 July 2019
IKEA
Why India’s E-Commerce Policy Is Actually Beneficial For The Companies It Impactsedit
The Indian e-commerce market is expected to hit $200 billion by 2026. This will be predominantly facilitated by increased internet and smartphone penetration, with a total user base expected to reach 829 million by 2021, up from 560 million in 2018. Diving deeper, we see that most of this will be driven by the sales of electronics. While India’s e-commerce sector is still at a nascent stage, it is set for a high rate of growth, and by 2022 it is projected to be worth over $71 billion.
Publication: Forbes
Date: 19 July 2019
E-commerceE-commerce policySales Hit the Roof Even as New Policy Keeps Ecomm Discounts Groundededit
Average discounts offered on e-commerce platforms are dwindling and yet sales are booming. What’s more, the brick and mortar segment is no longer worried about online discounts because the is “more sanity” in the market. At Amazon’s Prime Day sale and Flipkart’s Big Shopping Days this week- the first major online promotional events held since foreign investment rules for e-commerce were tightened in February – the average discounts had halved to 5-10% from 10-20% last years, industry executives said.
Publication: The Economic Times
Date: 18 July 2019
discountsE-commerce