Chinese fashion e-com sites flouting Indian FDI norms, allege AIOVA
By Meenakshi Kumar
8 Oct 2018
Several Indian ecommerce marketplaces have alleged Chinese sites are flouting the country’s FDI regulations, which does now allow investment in multibrand retail. As per media reports, All India Online Vendors Association (AIOVA), which represents 3,500 Indian members that sell across platforms, has also written to the consumer affairs ministry earlier to look into the operations of Chinese ecommerce websites.
As app tracking firm App Annie reveals, Chinese fashion firms like Shein, Romwe and ClubFactory—which figure among the top 10 most downloaded apps,— plan to launch mega offers to counter other e-commerce firms like Myntra, Jabong, Ajio, etc.
ClubFactory, which recently roped in Ranveer Singh and Manushi Chhillar as brand ambassadors, plans to launch its biggest sale called the ‘Club Diwali Sale’ from October 10-14, 2018. These sales will offer a free iPhone to all those placing orders during the festive period. Another Chinese online fashion firm, Romwe, has started its pre-Dussehra sales and is expected to roll out more discounts in phases. Targeting young buyers, these Chinese firms focus on trendy and reasonably priced products as their unique selling proposition. Such initiatives by these Chinese ecommerce sites are likely to impact their Indian rivals.