Local Traders Siege Flipkart Godown, Lock It Down Over Festive Discounts; Is This Fair?
In a blatant violation of Indian laws, few traders and a pseudo political party in Kanpur, Uttar Pradesh have sieged a Flipkart godown, and locked it down.
This is their way of protesting against deep discounts offered by ecommerce portals this festive season.
Is this fair? Why Govt. is not doing anything?
Flipkart’s Godown Under Siege In Kanpur
Yesterday, activists of Akhil Bhartiya Udyog Vyapar Mandal, and few traders and retailers came together, and locked down Flipkart’s biggest zonal godown in Kanpur.
Holding banners and posters, these activists and traders sat outside the locked down godown, and didn’t allow any normal functioning of the ecommerce portal, now owned by Walmart.
Reason For This Illegal Siege Of Flipkart Godown
Deep discounts offered by ecommerce portals, especially Flipkart and Amazon has been attributed as the leading cause of this bizarre protest.
As per some leaders who were leading the protest, brick-and-mortar stores are able to generate 30% of their revenues during the festive season of Dusshera and Diwali, and ever since ecommerce portals have started offering deep discounts on every product, the sale of offline traders have gone down.
And this, according to them, justified this lock-down of the godown owned by Flipkart.
We don’t have exact information, but from the initial reports and footage of the incident, it seems that the police were not able to remove these protesters for the entire day, and this must have caused considerable loss to Flipkart, since they were not able to operate smoothly.
Govt. Is Investigating Deep Discounts By Ecommerce Portals
After Confederation of All India Traders (CAIT) and other trade bodies of offline retailers complained to Govt over deep discounts offers by ecommerce portals, things have been tough for digital shops.
We have already reported that Govt. can take some strict action and actually punish Amazon and Flipkart and other ecommerce portals, if they are found guilty of breaking FDI rules, related with ecommerce.
Investigation is already on by Govt. officials, and if things turn out worse for the ecommerce portals, then they may have to shut down all discounts and offers, and sell products solely on the MRP.
This can be bad news for all online shoppers, and the movement of Digital India.
We will keep you updated, as we receive more updates.