Friday, 23rd March, 2018

GOSF : Superstores buying online to build stocks

17, Dec 2013 By Deb D Barman

Noida. You may or may not buy really useful things on Great Online Shopping Festival (GOSF); but retail chains in India do. Given three days’ time, retailer chains across India have ramped up their supplies and inventories enough to sustain a year till next GOSF comes.

Big players as “Really Big Bazar”, “The Mart”, “Spenders” and “Alliance Fresh” are leading this race followed by local kirana stores and then our own food minister (especially onion). As a result, all online retailers and courier companies are struggling to manage the massive shipment size of those bulk orders. Their employees are burning midnight oil happily on prospect of getting an extra pay due to revenue increase (companies confirmed that is not going to happen anyway).

To explain the strategy behind this trend, Binpooche Batanewala; a noted retail analyst said: “You buy an item with 80% discount online, get free delivery to your store, and then sell later with 40% discount. This is real business, man! Also many web places offer magic coupons for further discounts, over and above GOSF price! It’s just like Indian indirect tax system; discount on a discounted discount! ”

Jugaad Seth; Managing Director of leading retail superstore ‘Hype -r-city’, on condition of anonymity further explained: “Not only a great profit margin, you know about hundred percent cash back within one month promised by online stores. So we can actually send back our unsold inventory for full refund. No risk of loss if items are not sold. Huge profit margin, zero financial risk and exorbitant supply chain department makes this a golden strategy for us”.

Indian tax officials are not too happy with this practice as they can’t manage bribes charges for tax evasion. “This model is not friendly to social and economic structure we have. Shops can stock and sell anything they want without our help now, but we too have a family” – An angry official claimed.

A sigh of heartbreak prevailed in the market as GOSF ended today after three very promising days. But on popular demand who knows, it may happen anytime soon, again?