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Deep discounts in eCommerce online shopping is not healthy for Retail shops survive

Deep discounts in eCommerce online shopping is not healthy for Retail shops survive. Retail shops environment will be negatively impacted if eCommerce online shopping business gives huge discounts. Mainly to establish monopoly in the market they will try to give deep discounts when compared with retail shops which are made with brick and mortar. These eCommerce business wants mainly to accumulate customers even when they are in running losses. Because investors in eCommerce are looking how many customers they are having and how much revenue is generated. Flipkart when bought by Walmart for more than 16 billion USD, actually at that time Flipkart is running in losses. 

So over a period of time without able to withstand before monopoly of commerce companies, part of retail chain shops will get closed.

Then eCommerce online shops will try to increase prices more than retail shops once they find there is no alternation to customer except eCommerce companies.

Real estate shop prices which are inside shopping malls will come down as couple of retail chains are planning to close part of their retail shop outlets.

Already lot of companies in USA closed more than 10000 shops as per media reports in last 1.5 years.

Friday, October 4, 2019 - 12:38