Author Topic: New e-com restrictions in India just ruined Christmas for Amazon and Walmart  (Read 519 times)

rcjordan

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https://techcrunch.com/2018/12/27/amazon-walmart-india-e-commerce-restrictions/

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The three main takeaways from the new policy, which will go live on February 1, are a ban on exclusive sales, the outlawing of retailers selling products on platforms they count as investors, and restrictions on discounts and cashback.

littleman

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So, if one can't see products they are invested in then everything has to be sold through a middleman with no direct to consumer sales.  A lot of states have/had laws like that for car sales. 

aaron

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A lot of states have/had laws like that for car sales.
If you are not the middleman it is easy to see that as a flaw. But if you are the middleman it is a vital layer of protection from destitution.

Some of those laws came into being due to abuses in the supply chain during the great depression.
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During the Depression, desperate manufacturers often forced dealers to take new vehicles they hadn't ordered. Automakers recruited too many new dealers, including some who sold cars from their houses, storefronts or gravel lots. Such tactics thrust too many dealers into fierce competition with each other.

Established dealers with investments in their dealerships, property, experienced employees and stock turned to discounting vehicle prices and overpaying on trade-ins to make new-vehicle sales. But they were up against brokers and low-investment storefront franchise holders who showed little regard for sales territories.

Competition deteriorated into often unsustainable actions: selling on price alone, fierce price wars, rampant overpaying for used cars, clocking odometers, hiding defects, or otherwise tricking sales customers and overcharging service customers.

Borrowing Prohibition slang, some dealers engaged in bootlegging -- shedding excess new cars by selling them for a few dollars under factory invoice to a broker in another dealer's territory.
NADA almost went under
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In May, NADA’s general manager told the board that, based on the renewal record and members’ difficulty in paying dues, it would be “impossibleto carry the association beyond the first six months of the year without drastic changes.”

The secretary was to find new quarters for the association at a cost not to exceed $50 per month. The board reduced activity to a minimum and for the rest of 1932 employed only a secretary-manager and a stenographer, who also handled bookkeeping. The general counsel, field staff and mailroomclerk were let go.

Rupert

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Interesting.  It made me wonder what happens with Amazon India with regards Tax, and it appears India is struggling to keep up with that too.  Amazon still does not apparently make a profit there either:

https://www.thehindubusinessline.com/info-tech/gst-amazon-india-worried-about-tax-collection-at-source-plan/article9589717.ece

I think GST is a bit like the UK VAT, I am not entirely sure.

The bottom line is India has not been happy with the status Quo
... Make sure you live before you die.

aaron

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India is pushing widespread usage of Aadhar Cards to residents.
https://en.wikipedia.org/wiki/Aadhaar
It was launched in January 2009, but has been picking up speed in the past couple years.

About a week ago the WSJ published an article titled India’s Biometric Feat: Big Boon or Big Brother?
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Nandan Nilekani, the billionaire founder of Indian IT services giant Infosys Ltd. and the program’s original chairman, calls Aadhaar the modern equivalent of the U.S. instituting Social Security numbers in 1936. He likens the government funding to U.S. federal investments in the interstate highway system and in research projects that led to GPS and the internet.

Critics also say Aadhaar has been subject to monumental mission creep. It has morphed, they say, from a voluntary program distributing benefits to the poor to one that is effectively required for many facets of daily life. Some schools, for example, have required children to have Aadhaar IDs in order to enroll. Many local governments and businesses now demand Aadhaar numbers for obtaining marriage certificates, purchasing train tickets and even for gaining entrance to cricket matches, in addition to getting bank accounts and phones.
A story WSJ published in January stated
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Earlier this year, the Unique Identification Authority of India, the government body that runs the Aadhaar program, lodged a police complaint against a journalist for a story about how she accessed cardholders’ personal data by paying an anonymous seller on WhatsApp 500 rupees ($7.80).
« Last Edit: December 30, 2018, 11:39:01 AM by aaron »