MARKET WATCH
Retailers’ Body is
‘Cautiously Optimistic’
on Implementation of FDI
rules for E-commerce
With the government tightening the rules for
foreign direct investment in e-commerce sector,
Retailers Association of India (RAI) is “cautiously
optimistic” on its effective implementation.
Department of Industrial Policy and Promotion
(DIPP) under Ministry of Commerce and Industry
had issued clarifications in December last year
pertaining to FDI rules in the e-commerce sector.
“We are cautiously optimistic about the
implementation of press note (PN) 2. The rules are
just perfect and offer level playing field for us, if
the laws are enforced properly,” the association’s
CEO Kumar Rajagopalan told PTI.
E-marketplace players like Amazon and Flipkart
also come under the regulations, he has said.
However, enforcing the law remains a
‘challenge’, he said adding that the retailers’ body
has seen ‘some action on implementation’.
I don’t think the Centre has changed the spirit
of FDI rules (for e-commerce sector) in PN-2,
compared to PN-3 guidelines, issued in 2016. It
explains the FDI provision better and plugs some
loopholes for misuse, Rajagopalan said.
DIPP clarified that the FDI rules pertaining to
e-commerce have not allowed foreign investment
in the inventory-based model.
The Centre had not extended the timeline for
enforcing the new rules from February 1, 2019
and also asked companies to file audit reports by
September 30.
Domestic retailers made several complaints
about misuse of FDI by some e-commerce
companies engaging into back door multi-brand
retailing and deep-discounting, he alleged.
Excerpted from ET Retail
24
I APPAREL I
December 2019
The Indian textile and apparel industry shares
five percent in the global T&A trade and is the
second-largest manufacturer and exporter in the
world after China. The T&A sector contributes
seven percent of the industry output in value
terms and two percent to the country’s GDP.
The sector is one of the largest sources of
employment in the country and provides direct
employment to over 45 million people.
The Indian western wear segment is expected
to grow in the coming years and some factors like
the increasing number of working women, rising
urban population and increase in the younger
generation will add value to the sector. Western
wear will grow at a higher rate as compared to
ethnic wear in the next decade. By 2028, denim
and active wear are projected to depict a positive
growth and are expected to be one of the major
contributing categories in the sector.
Excerpted from IMAGES Business of Fashion
@Shutterstock.com
Growth Story: The Indian
Western-wear Market
Le Mill to Open Store in
New Delhi
Multi-brand luxury fashion boutique Le Mill plans
to open a store in New Delhi soon. The boutique
recently launched a pop-up shop in New Delhi’s
luxury mall The Chanakya. The pop-up was
launched on November 10 and will run till January
10, 2020. It features an array of international
luxury brands including Balenciaga, Jacquemus,
Balmain, Chloé, and Celine, with clothing, bags,
shoes, and accessories on sale.
Le Mill launched its multi-brand store in Colaba,
Mumbai, in 2011. The boutique also runs a
home-shopping service and retails furniture and
home décor.