Online retail in India has grown at rocket speed in last few years and most Indian have showed a lot of faith in online ecommerce platforms. Among them, Flipkart and Amazon are two e-commerce giants in the country and have almost eradicated its competitors to show their supremacy.

Now, India is very likely to need online retailers such as Amazon and Flipkart to display the state of origin against products listed on their e-commerce platforms. This decision is part of India’s policy measures targeting Chinese goods following the recent border clashes which have led the #BoycottChina products movement.

With this decision, the display of the state of origin is very likely to influence customer choice for items as Boycott China chorus is growing. One of the key thing that Chinese products have infused in the people is that they are very cost-effective and does the job when it comes to quality. This has led most people seeking these products but this movement will ultimately Indian companies to grow.

Amazon & Flipkart will soon display country of origin against products
via Live Law

Retail sector experts, however, say local products must be cost-competitive and great quality to create consumer interest. Anti China sentiments would soon dissipate and so would forecast for Swadeshi, they reckon. Obviously, now this simple step will help customers to know the origin of the product and make their own decisions, which until now was not-so-important apparently.

If people want to pay a bit more for good products then that would help the money to stay in this country, which ultimately is best for SMEs and manufacturers. The industry bodies assert that just as much as 70% of items sold on Amazon and Flipkart are of Chinese origin. They assert local manufacturers aren’t benefitting from the boom in the eCommerce sector.

Trader’s lobby group Confederation of All India Traders and other small manufacturers beneath the banner of Federation of Indian Micro and Small & Medium Enterprises had suggested making a display of the state of origin obligatory while providing their suggestions on e-commerce policy. Showing the country of origin will make people think twice before buying any product.

Confederation of All India Traders to boycott all Chinese goods
via IAS Toppers

Avneet Singh Marwah, Director and Chief executive officer, Super Plastronics Pvt Ltd which is the exclusive brand licensee of Kodak Television in India claims that the proposed passage to the mandate commerce players to display details about the state of origin can help his firm. 

Not only big Indian firms but also small scale manufacturers will get helped and it will be great if this eCommerce platforms show more support to these Indian startups and brands. In an important evolution, the government on Tuesday made it obligatory for vendors to join the state of origin while registering all new products on GeM portal site.

While an official announcement claims that GeM has taken a step of promoting Make in India and Aatma Nirbhar Bharat the decision will be mainly being seen as a targeted action on Chinese goods. What’s your stake on this decision by the Indian Govt. tell us in the comments below… 😉

Source: Business Today

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