Growth of e-commerce through predatory prices is a concern for small retailers: Piyush Goyal
Commerce and Industry Minister, Piyush Goyal raised concern about the functioning of the E-commerce sector, saying that E-commerce is eating into the small retailers by giving heavy discounts on products.
Goyal charged E-commerce players with predatory pricing and not giving a level playing field to small retailers.
Speaking at an event for the Report Launch on 'Net Impact of E-Commerce on Employment and Consumer Welfare in India Goyal said, «What does e-commerce do we all think that?, they are making things so much cheaper. If I go to a store and buy a five-star chocolate or a box of chocolates, It's going to cost me 500 rupees. I can get it delivered on e-commerce for 350 rupees. It's because that's the item that had the largest margin. E-commerce is eating into the small retailers, high value, high margin products, which are the only products through which it survives.»
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He said that the growth of e-commerce doesn't attack every corner of the retail store but it is a matter of concern.
«Are we going to cause huge social disruption with this massive growth of e-commerce? And I don't see it as a matter of pride that half our market could become a part of the E-Commerce Network. Ten years from now» the Minister said adding that he doesn't deny the role of the e-commerce sector.
He further emphasised the need to make the sector more organised, mentioning the predatory pricing being adopted by the
