Big discounts offered by the two largest e-commerce markets in India, Walmart’s Flipkart and Amazon, have vanished for more than three months now, executives from leading consumer companies said.
Nothing is sold below cost prices anymore, they said, although discounts may be more on market-owned private label products, which stepped on caution after the revised foreign investment policy for e-commerce came into effect in February.
Both markets have decided to slow down, at least until the next government takes responsibility, in the hope of pushing back the off-line commercial lobby, which is a massive vote bank and is pressuring the government and political parties against strong cuts online, said the minister four big business executives.
Some leaders said this indicated that online markets were maturing and focused on profitability.
The executives of the companies of consumer electronics, mobile phones, fashion and lifestyle said that the amount of discounts online has been reduced between 10 and 30% between February and mid-May compared to the same period of the year past.tt