There is lot of debate heard and seen in the market about the massive discounts being given by the e-tail (e-commerce) companies to the customers. These are termed as anti competitive and terms like predatory. However, what appears to be a battle lost in the market seems to the segment, which is dominating the market with every passing day. Hence terms like aggressive costing and massive discounts are no more anti competitive trends in the market but these are things that are meant to target the competitors. If you talk about the market in the current world, there is a divide seen in the form of virtual and real market. Both are platforms to sell a number of products to the customer.
|Too Much of Discounts is No More Anti Competitive|
As per the group CCI (Competition Commission of India), both the real and virtual market differs to each other in terms of discounts and offers. You can find the buyers weight both the options and then consider accordingly. If the cost of products is increased over the online stores, the customers would automatically shift to the brick and mortar store eventually and vice-versa. Thus the commission came up with the opinion that these two markets are two different entities, which have their own respective channel of distribution of the same product and not two different relevant markets.
Hence the commission and people in the commission feel that deep discounts is certainly not an anti competitive factor for the online stores. The commission further says that the virtual market function in a different way. They have their different pattern of doing business, and things work in a very different manner in this segment. Though the products could be the same but the way of bringing out to the consumers follow an all together different approach, which can render the cost different giving the customers good and massive kind of discounts.
So, if the real market tend to abuse the online market by saying that the former do not follow the business protocol and they are not ethical in their business practises then it’s time to give a second thought. The best way to survive in this current divide of real and virtual market is to start accepting the changes seen in the market and start treading the contemporary means to cater the customers otherwise the business community would turn obsolete in the current market scenario.