eComm Policy Scrambles Online Market For Phones

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The mobile phone category is in for a double whammy in the new e-commerce policy. On one hand the exclusivity prohibition will leave many brands scrambling to invest in new local channels and on the other, aggressive discounting on online platforms could be a thing of the past.

Sanchit Vir Gogia, Chief Analyst, Founder and CEO of Greyhound Research, said that the policy impacts Chinese brands like Xiaomi and One Plus, which primarily used e-commerce platforms to push their inventory. They will now have to look at investing fresh dollars in tier-2, -3 and tier-4 markets, where their partner base is “not that strong right now and in some cases, non-existent.” He said that this is “an area of deep concern” for such Chinese brands, while calling the policy a “spirit dampener” for online retail. However, now that aggressive discounting will be curbed, this policy is going to reduce the pressure on offline retailers to reduce their prices, said Gogia.

[Hindu Business Line]


Sanchit Vir Gogia: Sanchit is the Chief Analyst, Founder & CEO of Greyhound Research, a Global, Award-Winning, Technology & Innovation Research & Advisory firm. To read more about him, click here.

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