India becomes front in global e-commerce proxy war

[Sky lord]

Actually I agree with Mr. Bansal, CEO of Flipkart on this issue. We need global funds, but not their companies in e-commerce. I mean, Amazon, Alibaba and others developed in their own countries first and later used that money to invest in other countries. China made tight regulatory measures to ensure foreign companies were unable to start e-commerce in their country.

Now if we want to have an Indian dominating company among the world, we should have let Flipkart and Snapdeal emerge first in India using foreign funds, and they could have taken on Amazon or Ali baba anywhere around the world. Now Flipkart and Snapdeal are suffering, and I dont think for now they can become a global player.

Agreed. I think the issue in a democracy is that these global companies lobby with the government and the previous government was especially corrupt. I think they similarly sold air space rights to gulf airlines against the best interests of Indian airlines.

America is a technology leader so they tend to develop ahead of others without competition and China is totalitarian.

Hooefully the debate is on in India. Fingers crossed.

 

[P@nThEr]

Hey man if you like your markets being dominated by foreign companies then go for it.

Most start ups get funds through venture capital funding.It's nothing about being American/Chinese..
Flipkart Snapdeal & Amazon are all of same league in India..Flipkart dominates Indian market in terms of revenue or traffic by very huge margin....
Half of the things you have hazy clue you are talking on..

 

[Chinese-Dragon]

Most start ups get funds through venture capital funding.It's nothing about being American/Chinese..
Flipkart Snapdeal & Amazon are all of same league in India..Flipkart dominates Indian market in terms of revenue or traffic by very huge margin....
Half of the things you have hazy clue you are talking on..

You didn't even read the article in the OP.

Flipkart and Snapdeal are American and Japanese backed/owned companies.

The entire article is about foreign companies facing off against each other in India.

 

[unbiasedopinion]

paytm time is limited. it is going to come crashing because of BHIM and other UPI apps. What ever revenue paytm had to make, they had already made it, now they have stiff competition from government backed UPI apps.

 

[P@nThEr]

You didn't even read the article in the OP.

Flipkart and Snapdeal are American and Japanese backed/owned companies.

The entire article is about foreign companies facing off against each other in India.

What the fudge!
All start up get funding this way whether domestic or foreign..For E commerce huge fundings are needed to dominate relevant market over huge companies.....
Those are biggest investors but that doesn't mean they own companies or they run policies..
M not sure but Tiger Global have around around 25-30% stake on Flipkart so does soft bank has on snapdeal. Also other investors in different companies..Those start ups aren't even a decade old..They need time & investment from different companies to spread their business..

 

[RISING SUN]

I can sort of see why people are starting to hate globalization so much, when domestic markets are being dominated by Chinese and American companies. Or if we are talking about India's smartphone market, then Chinese and Korean companies.

As a nationalist I think that countries should be able to maintain dominance of their own domestic markets, if they have to use protectionism to achieve it then so be it.

Stuff like E-commerce, infrastructure, electricity supply, banking and telecommunications/networks especially, you know these are sensitive sectors.

Globalization is the way forward, with investment in logistics and warehousing building. However kindly understand no matter whether ownership is with either indian or foreign country, all critical financial information are stored in India physically with strong cyber protection due to direct control of RBI, SEBI and other agencies. Above all we have faith in our financial institution & its foreign partners.

 

[Rajaraja Chola]

Agreed. I think the issue in a democracy is that these global companies lobby with the government and the previous government was especially corrupt. I think they similarly sold air space rights to gulf airlines against the best interests of Indian airlines.

America is a technology leader so they tend to develop ahead of others without competition and China is totalitarian.

Hooefully the debate is on in India. Fingers crossed.

Letting Amazon set shop in India was a gigantic mistake. So is Uber. We need companies that can take on global heavyweights across the world. Only few countries will have capabilities and resource to petri dish large companies through which Indian interest can be advanced along the globe. Small countries dont have much option. They cant develop any large companies, but to let companies operate on their turfs. India is in no way small country.

An uber earns 10$ for an approximate 10km ride in NA. It can make an profit for more than 5$(that includes after paying driver fee, rent etc) where the original costs might be less than 2$ for that. And they use that extra money to invest in developing countries to kill out the competition where the price is in cents level.

Now I feel not letting in Walmart and big multi retail companies is good step after all.

 

[Sky lord]

Letting Amazon set shop in India was a gigantic mistake. So is Uber. We need companies that can take on global heavyweights across the world. Only few countries will have capabilities and resource to petri dish large companies through which Indian interest can be advanced along the globe. Small countries dont have much option. They cant develop any large companies, but to let companies operate on their turfs. India is in no way small country.

An uber earns 10$ for an approximate 10km ride in NA. It can make an profit for more than 5$(that includes after paying driver fee, rent etc) where the original costs might be less than 2$ for that. And they use that extra money to invest in developing countries to kill out the competition where the price is in cents level.

Now I feel not letting in Walmart and big multi retail companies is good step after all.

Actually all small countries have a few big brands...Volvo, IKEA, Hyundai, Swiss banks, etc. all come from tiny countries.

I think you just have to find your strengths and go with it.

Maybe for India - diamonds, cars, bikes....construction....some companies are already building airports , roads etc.....refineries....solar panels ... The point is to build up strength before letting in competition.

 

[liall]

Hey man if you like your markets being dominated by foreign companies then go for it.

What can Indian companies do? We dont have the capital like America and China.

 

[Rajaraja Chola]

Actually all small countries have a few big brands...Volvo, IKEA, Hyundai, Swiss banks, etc. all come from tiny countries.

I think you just have to find your strengths and go with it.

Maybe for India - diamonds, cars, bikes....construction....some companies are already building airports , roads etc.....refineries....solar panels ... The point is to build up strength before letting in competition.

European ones doesnt count One small country which have taken on the world is S. Korea alone. LG Samsung Shipbuilding, SS motors, Daewoo. And you missed Nokia from Finland.

 

[Indika]

Actually I agree with Mr. Bansal, CEO of Flipkart on this issue. We need global funds, but not their companies in e-commerce. I mean, Amazon, Alibaba and others developed in their own countries first and later used that money to invest in other countries. China made tight regulatory measures to ensure foreign companies were unable to start e-commerce in their country.

Now if we want to have an Indian dominating company among the world, we should have let Flipkart and Snapdeal emerge first in India using foreign funds, and they could have taken on Amazon or Ali baba anywhere around the world. Now Flipkart and Snapdeal are suffering, and I dont think for now they can become a global player.

We do have such rules, some of the foreign companies cannot open shop directly. They need to open local subsidiaries which are considered as complete Indian entities.

We had similar rules for airlines sector where foreign funding was not allowed. This led to some of the loss making ones to go bankrupt like king fisher. Fact is there is more politics than common sense in Indias policy making which prevents companies growing up. Established companies dont allow any changes to policy to maintain status quo.

 

[Rajaraja Chola]

We do have such rules, some of the foreign companies cannot open shop directly. They need to open local subsidiaries which are considered as complete Indian entities.

We had similar rules for airlines sector where foreign funding was not allowed. This led to some of the loss making ones to go bankrupt like king fisher. Fact is there is more politics than common sense in Indias policy making which prevents companies growing up. Established companies dont allow any changes to policy to maintain status quo.

But who is the investor? And to whom the money goes out? Foreign investors. And let us in turn to be controlled by Another american conglomerate? Google, Facebook, now Amazon and Uber?

 

[Indika]

But who is the investor? And to whom the money goes out? Foreign investors. And let us in turn to be controlled by Another american conglomerate? Google, Facebook, now Amazon and Uber?

Well money going out can be tracked as there are capital controls and there is no easy way out. Thats the reason why govt wants Indian registered entity ,then board and CEO every one has to be in India. Voting rights wont be with foreign entity but with local board members. All in all it will be a proxy affair and owner ship will be vague. End of the day we get much needed funds.

 

[Rajaraja Chola]

Well money going out can be tracked as there are capital controls and there is no easy way out. Thats the reason why govt wants Indian registered entity ,then board and CEO every one has to be in India. Voting rights wont be with foreign entity but with local board members. All in all it will be a proxy affair and owner ship will be vague. End of the day we get much needed funds.

I might be nationalistic. But I need an TATA or Reliance in e-commerce to take on global players. And at this rate it is not happening.

 

[kvpak]

I do not buy things on the basis of whether the web seller is "local" or international.

I buy things on the basis of whether the company uses my mother tongue or Hindi.

Flipkart is Indian but refuses to use Tamil (last tine I went there) in spite of requests. Amazon uses Tamil. Guess where I do my shopping