Taru,
I hope you got my email of yesterday
My today’s following blog , is centered around E Commerce / Reliance Retail
See last 3 links
Batuk Kaka
From: Hemen Parekh [mailto:hcp@recruitguru.com]
Sent: Monday, January 21, 2019 12:01 PM
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Subject: THIS IS WHERE ANGELS FEAR TO TREAD !
My today’s posting on LinkedIn :
We have all heard the story of 7 blind persons trying to figure out the shape of an elephant by touching / feeling different parts of its body
And , coming up with descriptions of 7 non-existent animals !
A somewhat similar exercise is under way right now , to define E COMMERCE , by the following stake-holders ( - incapable of seeing the future, beyond their noses ? ) :
# Government
# Online Retailers
# Offline Retailers
# Payment Companies ( including Banks )
# Delivery / Logistics Companies
# Product Manufacturers / Service Providers
# Dealers - Stockists - Distributors - Wholesalers
# Political Parties
# Trade Associations / Professional Bodies
# Swadeshi Jagran Manch
List goes on and on I urge them all to take a look at " What is around the Corner " !
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Weave a Wondrous World [ W3 ]
Of late, there is a lot of debate in respect of the following dimensions of E Commerce :
BUSINESS STRUCTURE
Domestic vs Foreign Multinationals
Single Product vs Multi Product
Marketplace vs Inventory-based
FDI vs Domestic Investment
Selling from own web site vs from someone’s web site
Related Entities vs Non-related Firms
Vendor vs Platform
How much can be sold by one Vendor vs Unlimited Sale by any Vendor
Preferential treatment vs Equal treatment
Private Labels vs Public Labels
I do not know if anyone has also added to this endless debate , the dimension of “ Ownership “ , viz :
Single Person owned / Partnership / Private Ltd / Public Ltd / Co-operative etc
Given these 11 variables , how many “ Permutations / Combinations “ can we get ?
If my math has not got too rusted , could these amount to :
L 11 ( Factorial Eleven )
= 11x10x9x8x7x6x5x4x3x2x1 = 39.92 Million ?
Next , let us consider the following dimensions of E Commerce :
BUSINESS PROCESSES
Nature
( a “ physical “ product vs a “ virtual “ service )
Geographic Spread
( “ within a State ” vs “ across India ” vs “ across entire World ” )
Supply Chain / Intermediaries
( Mfr > Distributor > Dealer > Retailer > Buyer )
Order Placement and Acceptance
( Shop / Store / Office / Factory / Home / Web site / Mobile App / SMS / Email /
Phone / Video Conference for a Service )
Delivery
( Personal pickup / Delivery Boy / Drone / Self 3D Printed at home )
Payment
( Cash / Cheque / Credit-Debit Card / Payment Wallets – Gateways / Bank Transfer / Barter )
I am at a loss to calculate the number of “ Permutations and Combinations “ that these “ variables “ could generate , in conjunction with those 39.92 million mentioned above
Quite likely , TRILLIONS !
It is simply impossible to structure a “ E Commerce Policy “ which can address all of these permutations !
So , how will the E Commerce game get played out ?
Here is a hint :
( source : India's e-commerce curbs could hit online sales by $46 billion by 2022 )
Extract :
Industry sources told Reuters the policy would delay or derail some investment plans and push companies such as Amazon and Flipkart to create new, more complex business structures
How complex can these Business Structures get ?
I expect Shri Mukesh Ambani to conjure up for Reliance Retail , a complex structure comprising following elements :
Holding Company and Subsidiary company Reliance Retail Ltd ( RRL )
A “ Cooperative “ of 4 million Kirana Shops ( ala AMUL ) – KIRIL
Cooperative holding “ non-transferable / non-voting “ shares in RRL
Holding Company giving loans to Kirana Shops to buy shares of KIRIL
Manufacturers of Consumer Goods launching “ E Com Platform “
4 million Kirana shops listing their inventory on this “ E Com Platform “
And here are some “ legit “ ways to overcome those hurdles placed by DIPP :
Instead of E Com platforms offering discounts , Banks / Credit Card Companies / Mobile Wallet companies etc to offer “ Discounts “
Logistics / Delivery companies to offer “ FREE DELIVERY “
Manufacturers to make “ Exchange Offers “
Instead of calling it “ Cash Back “ , just say “ 50 % off “ or “ Today’s Price “
I choose to envision the following :
“ E Commerce is as elusive as an molecule of Air “ , that travels freely around the Earth – and unstoppable by national boundaries or un-implementable laws ?
Neither its Origin , nor its Destination will be apparent !
Someday soon , everything will be displayed and sold “ Online “
The only sensible ways is to treat “ E Commerce “ as a “ Traditional Commerce without bothering to define its “Business Structures” and “ Business Processes” ?
REFERENCES :
[ A ] RIL readies e-comm platform, to take on Amazon, Flipkart
Extract :
“The new e-commerce platform will empower and enrich our 12 lakh small retailers and shopkeepers in Gujarat
………intends to take on the world’s largest retailers by combining his JIO telecom service , mobile devices and a vast physical retail network
Financing > Interest – free loans from 90 IT professionals to 98 farmers
Payment > Barter system through groceries ( “ Return “ on investment ? )
Delivery > From a designated outlet
Ordering > Online
This e-commerce platform will help connect artisans to buyers directly, enabling them to expand to newer customers and markets.
[ D ] Swadeshi Jagran Manch urges govt not to go easy on e-commerce
Extract :
The SJM cited that China-based sellers are selling Chinese products illegally on e-commerce sites, and said it has identified 200,000 such orders being fulfilled on a daily basis via this channel in India.
These companies are delivering goods via couriers and postal gift shipments, bypassing and evading a range of laws regarding payment gateways, custom duties and GST
[ E ] Call it tech biz , or retail biz ? (Debashish.Mukherjee@
Extract :
One, the assumption that ecommerce is a technology business and not a retail business.
However, it is clear that any entity that,
controls or curates the assortment for sale,
has pricing power,
acquires customers and,
to some extent, deals with inventory and other services to the end customer ,
is a retailer
[ F ] Here's how regulatory challenges are affecting new economy activities
Extract :
Laws regulating E – Commerce
Drugs and Cosmetics Rules – 1945
Packaged Commodities Rules – 2011
Consumer Protection Bill – 2018
Food and Safety Standards Act – 2006
FDI Policy – Press Note 3
Foreign Exchange Management Act
National Telecom Policy
Draft – National Digital Communications Policy – 2018
Personal Data Protection Bill – 2018
IT Act – 2000
Payment and Settlement Act – 2007
[ F ] MA = DA x 4,000,000 ? [ 17 July 2018 ]
Jio Hubs : Entrepreneurs Apply [ 19 Sept 2018 ]
Mukesh has the last laugh ! [ 31 Dec 2018 ]
Game plan of how Reliance Retail plan to make Amazon / Flipkart etc , irrelevant
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21 Jan 2019
Rsvp : hcp@RecruitGuru.com
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