For Indian e-commerce firms, already struggling to shrug off the ill-effects of demonetisation and goods and services tax, this festival season is likely to be crucial. What has made the situation all the more tricky is the entrance of a new deep-pocketed player, Paytm Mall.
“Demonetisation and goods and services tax (GST) have had its impact on every sector. The mood is sombre in the country. Spending patterns are quite low this year in contrast with last year,” said Sanchit Vir Gogia, Chief Analyst, Founder and CEO of Greyhound, a global strategy and transformation research, advisory and consulting firm.
Gogia concurs, “India will spend during the festival time but no matter what e-commerce players will offer by way of discounts, sales wont be high.”
“Flipkart will be affected,” said Gogia of Greyhound. He says that flush with funds, Paytm will do everything in its bid to displace Amazon and Flipkart to get to the lead position in the sector.
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Sanchit Vir Gogia: Sanchit is the Chief Analyst, Founder & CEO of Greyhound Knowledge Group, a Global Strategy & Transformation Research, Advisory & Consulting Firm. To read more about him, click here.
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