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The TroubleShooter!
Dozens of small brick-and-mortar retailers have banded together to seek protection from e-commerce companies, which they say are undercutting them with predatory pricing. The retailers, mostly from Bangalore - home base for Flipkart, India's largest e-tailer - have written to the Competition Commission of India, complaining that their online counterparts are selling goods below cost and skirting Indian laws on foreign direct investment in retail.
Hari Rastogi, a Bangalore-based seller of electronic goods who is galvanising support among traditional retailers, argues online commerce firms are gambling that they will capture market share by selling below cost during the initial years. Moreover, in his letter to CCI, he questioned the legality of operations by foreign-funded online retailers. "When venture capital funding is not allowed in e-commerce, these companies are registering offices in Singapore and routing the money in for the same business," he wrote on October 20.
Source:Price War: Retailers write to CCI; accuse e-tailers of predatory pricing - The Economic Times
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