Union Knopf (India)

RetailNEWS
Assocham Study Predicts
100 million Plus Online
Retail Consumers by 2018
With e-retail
market poised
for a 65
percent jump
by 2018, the number of
consumers purchasing online is
expected to cross 100 million by
2017 end, says a study by
ASSOCHAM. 2017 will witness a large scale growth in
the Indian e-commerce sector as the participation of
people grows from across India. The report forecasts that
the e -commerce industry will continue to drive more
employment opportunities and encourage
entrepreneurship through the e-commerce marketplace
model, the report adds. The report adds that
demonetisation and a reduction in cash transaction
along with improvement of net banking facilities could
prove to be helpful for the Indian e-commerce sector.
The study estimates that approximately 69 million
consumers had purchased online. This is expected to
cross 100 million by 2017 due to rise of digital natives,
better logistics, broadband and Internet-ready devices to
fuel the demand in e-commerce. The Indian e-retail is
expected to touch 17.52 billion dollars by the end of
2018. The report points out that the total retail sales are
growing at an impressive rate of 15 per cent registering a
double digit growth figure year after year. Other
predictions made by the report include mobile
commerce jumping to 45-50 per cent in 2017 as against
the current 30-35 per cent of e-commerce sales. The
study observes a surge in the number of people shopping
on mobile across India with Tier II and III cities
displaying increased dominance. The reports declare
Bangalore to have the highest preference for online
shopping in 2016 followed by Mumbai and Delhi
Retailers Change strategy
to Face Online onslaught
Major Indian
fashion retail
store chains
are ramping
their own e-commerce
websites and offering discounts
and deals in order to face the
challenge posed by online retailer
giants like Amazon and Flipkart. Competition seems to
be increasing in the Indian market as 2016 saw several
international brands foraying into the Indian market.
Special offers and discounts offered by them is likely to
continue in 2017. Gains made by retailers due to these
measures are however under pressure due to the
demonetisation drive.
In
News
karnataka Hosiery and
Garments Association
makes Suggestions to the
GovernmentKarnataka Hosiery and
garments Association
(Regd) has written to
the Honourable
Central Corporate & Finance
Ministers of State and made
several suggestions. The letter
expresses support to the GST policy
but makes some suggestions.
Suggestions of the association include:
1. The registration limit for GST should be raised to
Rs 25 lakhs and Audit limit for GST should be raised to
Rs 2 crores.
2. Buyers should not be penalized for non compliance of
uploading by sellers
3. Dealers are mediators on behalf of Government to
collect the tax and deposit the same in treasury. Provision
for imprisonment should be abolished for human errors
committed in that course. They suggested the GST slab
for Garments and Textiles should be kept at the minimum
i.e not more than 5%.
4. Given the importance of the garment and textiles
industry, the Association has requested the Government
to include representatives of the readymade garment in
the team while forming the policy for the industry.
RETAILERS SEEK
IMPLEMENTATION OF GST AT
THE EARLIESTRetailers have sought
for an early
implementation of
the Goods and
Services Tax regime (GST)
which they believe will be a
game-changer for country’s
retail sector. Indian retail sector is
pegged to grow to USD 1.3 trillion by 2020 and
GST can be a big game changer. Favourable tax rates
under the proposed Goods and Services Tax would
benefit the wholesale as well as real estate and
infrastructure sectors, which have a direct bearing on the
growth of organised retail across the country.
The industry body is also looking forward to various steps
being taken by the government to build back consumer
confidence and inspire positive sentiment towards
consumption.
36
January 2017
APPAREL&Fashion