FUTURE OF E-COMMERCE ? THIS IS AROUND THE CORNER

Of late , online / offline Media are full of dozens of articles re the latest guidelines / norms issued by the Government re E -Commerce ( - although, the DRAFT E Com Policy is getting ready for last 30 months ! )

Experts on panel-discussions on TV Channels are arguing for and against the new norms

But  Mukesh Ambani  is not wasting any time reading those articles or watching those panel discussions !

He is busy re-writing the rules of the E Commerce Game by creating a Hybrid Model of E Commerce , called " F - Commerce " Call it , Future of Commerce

To know how this will look , read :

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Mukesh  has  the  last  laugh  !

A few days back , Commerce Ministry announced FDI norms / guidelines in relation to E Commerce

This was done, even as DRAFT of the new E Commerce Policy is yet to be released ( - a “ work in process “ for past 2 years )

Briefly ,  it reads :

·      E-Marketplace players cannot sell products of companies in which they hold a stake. Such an ownership or control over the inventory will render the business ( market-based model ), into an “ Inventory-based “ model

·      Inventory of a vendor will deemed to be controlled by an e-commerce marketplace entity if more than 25 % of purchases of such a vendor are from the “ marketplace entity “ or its group companies

·      E-commerce marketplaces to furnish certificate and report of statutory auditor annually to RBI confirming compliance

·      E-commerce marketplaces are allowed to support services to sellers, such as

#    WAREHOUSING

#    LOGISTICS

#    ORDER FULFILLMENT

#    CALL CENTRE

#   PAYMENT COLLECTION

·      E-Commerce companies with foreign funds have to compulsorily operate as a “ marketplace “, as FDI is allowed only in such models, and not in “ inventory-based “ ones

[  Under an “ Inventory-based “ model, companies can sell their “ own “ items , whereas in a “ marketplace “ model, they can only serve as the link between buyers and vendors  ]

·      E-commerce “ marketplace “ entity should not mandate any vendor to sell any product exclusively on its platform

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QUESTION :

·      What is the E-Commerce “ model “ of  Reliance Retail [  RR  ]-

Is it a “ Marketplace “ model or an “ Inventory-based “ model ?

Ask Mukesh Ambani and very disarmingly , he will say :

“ Oh , ours is a “ Hybrid Model “ and therefore it is outside the purview of the guidelines / norms just announced

It makes us “ F-Commerce “ – short for FUTURE of COMMERCE  “

F-Commerce for the following reasons :

[As envisaged in : https://myblogepage.blogspot.com/2018/07/ma-da-x-4000000.html  ]

SALES :

All of your merchandize will be available for selection / ordering on our ONLINE web portal 

This online presence of your merchandize will expand / extend your " reach " to thousands of consumers in your neighbourhood

You will need to only focus on OFFLINE ( across-the-counter ) sales to consumers who walk into your store

For OFFLINE sales , we will install in your stores , all the necessary Computers / POS terminals / Routers / Internet Connections / Mobile Wallet Payment systems and an end-to-end , RETAIL MANAGEMENT software 

All of your OFFLINE sales data will get transferred to our Central Server

SUPPLY  :

We will deliver to your store , all merchandize on " Consignment " basis

This means , you do NOT need to pay us for what we deliver to you store !

Till sold , all goods in your store will be our " stock "

This way , you do NOT need any " Working Capital " as far as your stocks are concerned 

We will also tie-up with the manufacturers

You don't need to have any interaction / dealing with the manufacturers

INVENTORY  :

On a continuous basis , our web server will keep a track of each and every item of merchandize sold from your stores

Our Server will calculate , your " Stock Movement " 

Based on this data , our Server will compute / set for each item :

#   Minimum Stock Level

#   Alarm Stock Level

#   Stock Re-Order Level

#   Re-Order Quantity ( Minimum Batch Size ) 

Based on this logic , our Server will instruct the relevant " Merchandize Manufacturers " ( or their dealers / stockists ) , to deliver the stipulated " Re-Order Quantities " to your stores

A " Re-Order Instruction intimation " , will get delivered to your computer

Upon arrival , you will need to update the data

From time to time , our Software will also figure out your current stocks of " Extremely Slow Moving " and " Obsolete / Expired " items , and arrange for " Return Delivery " , which you will need to enter in your database

DELIVERY  :

Not only we will deliver the merchandize to your store , but we will also pick up " Ordered Items " ( for ONLINE orders only ) , from your store and deliver the same to your customers  !

Initially we will employ manual " Delivery Persons " for this but , before long , we will deploy a fleet of autonomous DRONES for this purpose 

This fleet will cover " Kirana Stores " and " Online Customers " , located in pre-designated areas , covering 4 sq km ( 2 km x 2 km )

We are in talk with www.What3Words.com , to enable precise delivery through your 10th floor window  !

These drones will get their " Delivery Instructions " directly from our Web Server , for all ONLINE orders

When these drones arrive at your Store to pick up the items ( to be delivered ) , they will transfer ( Blue Tooth / NFC ) and display on your Computer screen , following data :

#  Online Order Number / time / date

#  Items covered with description / value of each

#  Customer Name / Address 

#  Mode of Online Payment / Bank Details 

#  Your online account CREDIT details , giving,

     ( Sales Value ) - ( Purchase Price )  

    " Purchase Price " of goods in your stock will be

     based on FIFO method

FINANCE  :

As explained earlier , you will have a bare minimum need for " Working Capital " , since all of your stock will be on " Consignment " basis

We will collect the " ONLINE  PAYMENTS " directly from the customers and " Credit " the same to your " online sales account " with us

Against same account , we will " Debit " the " purchase price " ( price at which you purchase the merchandize from Reliance ) of the goods sold

Our server will also take care of all GST payments and filing of GST returns

As far as OFFLINE sales is concerned , all the data captured through POS terminal will get transferred to our Central Server

MARKETING  :

Not only will we carry out all marketing for your ONLINE sales , we will help you with your OFFLINE marketing , through introduction of the following technology-enhanced features :

#   Arranging a better display of merchandize on your shelves / re-arranging of shelves


#  Introducing Augmented Reality ( AR ) for clothes / fashion goods in " Trial Rooms " for giving the customers , an experience of " touch - feel - looks "

#   Introducing Robots to answer customer inquiries

#   Eliminating " Check Out Counters " , based on " Payments through Bio-metric Recognition " of customers

#   Embedding RFID sensors in each item of merchandize and RFID readers embedded in Shopping Carts

#   Improving your window display thru rotation

#   Introducing music

#  Eventually replacing " Physical " merchandize with " Holographic Display " of merchandize on your store shelves !

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Apparently , Mukesh seems to have come up with his “ F-Commerce “ model , after reading the following :

[ source :

https://myblogepage.blogspot.com/2016/08/missing-woods-for-tree.html / 12  Aug  2016 ]

" E- Commerce and Foreign Direct Investment " are the " Special Theory of ECONOMY " , whereas " Commerce and Investment " are the " General Theory of ECONOMY "

The best that the Committee can recommend is adoption of the following ,

Parekh's , " 3  Laws of E-Commerce Economy " - to be incorporated as 123rd Constitutional Amendment

( with apologies to Isaac Asimov's 3 Laws of Robotics ! ) :

LAW  #  1 :

Asimov :

        A robot may not injure a human being or, through inaction, allow a human being to come to harm.

Parekh :

Rules / Regulations of E-Commerce shall not come in the way of unfettered creation of SELF EMPLOYMENT

    

 Any existing Law / Rule / Regulation that hinders a person to become Self Employed, shall be treated as ultravires

  

Further , any Law / Regulation of " E-Commerce / FDI " which slows down Investment ( Foreign or Local / Official or through channeling of BLACK MONEY ), shall be treated as " bad in law " and struck down

LAW  # 2

   

Asimov :

     A robot must obey the orders given it by human beings, except where such orders would conflict with the First Law.

     Parekh :

     Laws / Regulations governing " E-Commerce / FDI " shall be subservient to Laws / Regulations governing " Commerce / Investment " .

       

     Whenever any Public Authority / Court finds conflict between the two ,  laws / regulations governing " Commerce/ Investments " , shall prevail under all circumstances , and in favor of the self employed

     

     LAW  #  3

     Asimov :   

     A robot must protect its own existence as long as such protection does not conflict with the First or Second Laws.

   Parekh :

     Laws / Regulations of " E-Commerce / FDI " which get over-ruled under LAW # 2 , shall immediately " Self Destruct " in favor of unobstructed progress of TECHNOLOGIAL ADVANCES

  

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01             Jan  2019

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