Rs 1.25 lakh cr Diwali sale strong reply to those who said ecomm will soon overtake retail trade: CAIT

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November 07, 2021 3:27 PM

Ease of Doing Business for MSMEs: CAIT has been alleging unfair business practices by Flipkart and Amazon such as preferential treatment to sellers, deep discounting, and more, creating an uneven playing field. However, both marketplaces have continuously claimed complete compliance with the Indian laws.

A loss of around Rs 10,000 crore was recorded by small manufacturers and sellers of firecrackers, as per CAIT. (Image: Pexels.com)

Ease of Doing Business for MSMEs: The record-breaking Rs 1.25 lakh crore Diwali sale for traders and retailers is a strong and credible answer to think tanks, economists, retail experts, and some sections in government quarters who said that gone are the days of offline trade as e-commerce will overtake retail trade in India soon, traders’ body CAIT said on Sunday. Based on a study by its research arm — CAIT Research & Trade Development Society (CRTDS), the association had announced on Thursday that Diwali sales for traders across the country had generated sales worth over Rs 1.25 lakh crores and a business loss of over Rs 50,000 crore to China amid call to boycott Chinese goods. 

“The purchasing pattern of the consumers has greatly prompted CAIT to demand the government to put an end to unholy nexus of foreign-funded e-commerce companies, big brands providing exclusivity, and banks providing cashback on purchase from online portals. This kind of discriminatory treatment will not be tolerated any further by the traders,” Praveen Khandelwal, Secretary-General, CAIT said in a statement. CAIT has been alleging unfair business practices by Flipkart and Amazon such as preferential treatment to sellers, deep discounting, and more, creating an uneven playing field. However, both marketplaces have continuously claimed complete compliance with the Indian laws. 

The trade body said that the sales figure was based on a telephonic survey conducted in different states with trade leaders and in particular 20 different cities that are also considered as leading distribution centers of India.

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However, a loss of around Rs 10,000 crore was recorded by small manufacturers and sellers of firecrackers “due to the lackluster attitude of the state governments about having a firecracker policy,” CAIT said. However, the packaging trade has become a new vertical of robust business growth as it registered a sale of about Rs 15 thousand crores this year, it added. As per the joint statement by Khandelwal and CAIT National President BC Bhartia, around Rs 3 lakh crore is expected to be infused in the markets by the end of December this year that “will not only improve the economy but will also relieve the business community from the great financial crunch.” 

According to the study by CAIT, big brands in FMCG, consumer durables, electronics, mobiles, foodgrain, toys, gift articles, kitchenware & kitchen equipment, footwear, optical items, readymade garments, fashion apparel, etc., had registered a growth of about 15- 20 per cent at the level of distributors and retailers. On the other hand, local brands or emerging brands at state levels grew up to 40 per cent to 45 per cent in terms of sales.

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