? Cool Title, but what’s the news?
If the new e-commerce rules come into action, Reliance and Mukesh Ambani could pose a serious threat to Amazon in becoming the top place in the Indian e-commerce space.
? Okay, but what does it mean?
A new national e-commerce policy calls for harsh controls on even the phantom sellers that Amazon and Flipkart have been using to get around the no-inventory problem, since foreign-funded firms aren’t allowed to hold e-commerce inventory in India. Meanwhile, Indian-managed companies like Ambani’s Reliance Retail Ltd. will be free to control and improve their supply chains while building a fearsome online presence in partnership with his mobile operator, Reliance Jio Infocomm Ltd.? Why should I care?
As the Wall Street Journal noted this week, the move is bound to push up costs for Western firms. India is pegged to be a $1 trillion digital economy by 2025, and Bezos, Ambani, and the Bansal and Walton families backing Walmart-Flipkart all want a piece of the action. Judging by this first round of regulatory skirmish, it’s the Reliance boss that Bezos needs to worry about most. Source: Financialexpress
