Brick-and-mortar retailers attack Amazon over its Rs 200 gift offer for Indian customers – Earlier this month, Amazon founder and CEO Jeff Bezos sent offers of Rs 200 gift cards to millions of Indian customers as part of a marketing ploy that did not go down well with the country’s brick-and-mortar retailers who are crying foul.
The Retailers Association of India has complained to the government and accused the e-commerce giant of violating foreign investment laws by offering gift vouchers to its customers. The email sent on Dec 14 to celebrate the company’s journey in India was signed by Bezos himself.
“To celebrate and thank customers for their confidence in us, we are happy to announce an Amazon.in gift card of Rs 200 for all customers who shop on Amazon.in today,” Bezos said in the email.
The retailers’ association, which filed a case in the Delhi High Court in May alleging that ecommerce companies were flouting the country’s FDI laws, objected to Bezos’ magnanimity.
India allows foreign investment in business-to-business, or B2B, ecommerce ventures but bars FDI in business-to-consumer, or B2C, ecommerce firms selling multi-branded products. Last month, India allowed online sales for entities that have permission to start single-brand retail outlets.
e-Commerce firms, including Amazon and domestic competitors Snapdeal and Flipkart, say they operate on a marketplace model, where India allows 100 percent FDI, and that they only offer platforms for Indian retailers to trade.
However, Indian retailers contest such claims, saying that the marketplace is a sham model for sales by foreign online retailers.