Traders plot retail's revenge over e-commerce

Local traders are betting big on the upcoming Amdavad Shopping Festival (ASF) to woo customers back to retail shops. They claim freebies by e-commerce portals, combined with an overall economic slowdown, has hit local retail hard. Even the recent festive season disappointed neighbourhood shopkeepers across sectors like garment, jewellery, consumer goods, etc.

Local traders say e-commerce portals have eaten up half their traditional market. "Half the market shops online now. e-commerce firms have deep pockets and indulge in predatory pricing. Their prices are so low that traditional shops can't compete with them. During the ASF though, traditional shops will also offer discounts and revive the offline shopping habit," said Girish Kothari, president of the Ahmedabad Salwar Suit Association, further adding that if the government can prevent predatory pricing, e-commerce portals' business will reduce by over 50 per cent.

The traders also blame demonetization for their reduced sales. They claim that even two years after the decision, business remains slow. Pre-demonetization, they say, women had cash in hand, enabling them to shop at outlets of their choosing. With this cash now in banks and with shrunk liquidity, footfalls in physical shops has also dropped.

Gujarat Revenue Minister Kaushik Patel said that close to 20,000 businessmen across sectors are expected to offer discounts during the festival. In addition to this, lucky draws will also bring back customers in markets, increasing sales and consequently resulting in tax revenues for the state exchequer.