Future Group founder Kishore Biyani has said that with the recent changes made by the government in the e-commerce policies have paved the way to build an Indian Amazon or Alibaba.
It is important to mention that the Indian government on Wednesday, (26-12-2018) announced that it is tightening its rules for e-commerce retailing in the country. The new norms impose restrictions on e-retailers from selling products by entities in which they hold partnership stake.
“It’s a game-changer for us. This is not really a policy but more of a clarification and every retailer will have to adhere to it. They can’t build brands now.” – Kishore Biyani, Founder, Future Group
He further added that the way e-commerce players were influencing prices in a profitable manner is something a brick-and-mortar retailer cannot do. Apart from big players, even some of the grocery retailers will be out of business.
Notably, the revised policy will become effective from February 2019. The draft for changes came after several domestic retailers complained about the inverse effect on their business from online retailers, as they offer huge discounts.
“Why should Indians rely on global e-commerce companies? If China can build a successful retail model, why should the Indians be left behind, given the talent in our country?” – Kishore Biyani, Founder, Future Group cited targeting Amazon and Alibaba.
Reportedly, Amazon is in talks with Future Group to acquire a minority stake in the Indian retailer and commenting on the same Biyani said that the deal is hanging by a thread.
