The reason why Flipkart and Amazon are not part of the council is because they are subsidiaries of other companies while they are free to join the council anytime, said Fynd’s Co-founder Harsh Shah and TECI’s member.
Newly formed association for India’s e-commerce marketplaces and digital-first companies — The E-commerce Council of India (TECI) — has kept the US-based Amazon’s India arm and Walmart-owned Flipkart out from becoming its first set of members. The 12-member e-commerce lobby includes Snapdeal, ShopClues, Fynd, UrbanClap, Bewakoof, Mamaearth, Shop101 etc.
“The reason why Flipkart and Amazon are not part of the council is because they are subsidiaries of other companies while they are free to join the council anytime. The reason why we reached to the companies among us is because there is a structural alignment,” Fynd’s Co-founder Harsh Shah and TECI’s member told Financial Express Online.
Shah also said that the council members are predominantly Indian companies which are not majority owned by any outside investors or are not arm of any global company. “So we wanted to ensure that to come together and make this (Indian e-commerce) representation,” he added.
While Indian e-commerce has been around for more than a decade, Shah said that the representation has gained significance ahead of major regulatory overhaul.
“While e-commerce has been around from quite some time but it has always been in different shape and form. Now as the government is also looking to come up with something concrete for the industry, we wanted to ensure that we have the correct representation,” Shah said.
TECI is currently mid-way “understanding” the 41-page draft e-commerce policy and hasn’t come out with an official statement on the regulations drafted, said Shah.
Shah further highlighted the need for formulation of India’s first council for its fast growing e-commerce sector.
Importantly, the member organisations wanted to share their views especially with respect to e-commerce policy as all of them representing it together is much stronger than anyone of them trying to do that individually. Also, it is about sharing best practices with each other because there are a lot of things that members do especially on the legal side and on customer acquisition side and hence there are multiple things members can learn from each other. The council members see benefit of working together in areas such as on the supply side and also whether there are any avenues of doing research and development together, said Shah.