Wednesday, January 27, 2021

Domestic e-tailers depend largely on China even though they push local brands

Indian ecommerce marketplaces may accelerate their efforts to localise private label products and run campaigns to promote locally manufactured goods on their platforms amid India-China geopolitical tensions.

However, it is unlikely that these marketplaces will take a stance on initiatives such as the #BoycottChina movement on social media as China remains the biggest sourcing hub for fast-moving categories such as smartphones and electronics, said multiple industry executives.

“We’ve been trying to localise sourcing for private labels for a long time, but you could say efforts have been accelerated because of Covid and now this (India-China border issues),” said a senior executive on the condition of anonymity.

Both Amazon and Flipkart have been running campaigns to promote local brands and small manufacturers over the past couple of weeks just as #BoycottChina began picking up steam. 

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Snapdeal said it has been focused on providing Indian MSMEs a platform to grow their businesses, without commenting on the India-China issue.

Another executive said, “By law, marketplaces are required to stay neutral, and something as drastic as banning products made in one place can land us into trouble with sellers.”

SourceET Rise
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