Dirty Tricks or Business Strategy?

[kuks1]

Moment I see Amazon Basics or Solimo, I walk away.
That said, all big corporates are unethical and exploitative people.

I agree 100%. Amazon is using other sellers as guinea pigs. They make them pay for promoting the product, the moment a product/new category is created or starts to sell they source/copy/start making it themselves and start selling it. Yes most companies do this, yes sellers don't have a choice other than amazon, yes the products will be cheaper on Amazon and they will give discounts for now and yes they will destroy all competition and then rule the market. All this is unethical.The problem is I see so many people who are supporting these unethical practices. We have come to not only accept this but also support it actively.

 

[raghupb]

In the last 2 or 3 decades, businesses or companies that have done well, for themselves and customers are the disruptive ones.
As long as they don't engage in unlawful activities, like tax evasion, etc, it is just business tactics. Ethics is a very loosely defined concept.
If a product is not patented, there is nothing stopping you and I replicating them, maybe even bettering them, while maintaining price parity.
Any smart platform company will try to leverage their learnings (and earnings) to create in-house brands.
Every government is working with this new paradigm of business and will take appropriate action to provide a competitive atmosphere.
There will be cribs from both sides, but the little guy has to be nimble and creative.
Remember, Amazon started out selling books, they were little once

Cheers,
Raghu

 

[Decadent_Spectre]

Ethics is a very loosely defined concept.

Ethics, like most things in life, are subjective. What is ethical for one may not be ethical for another.

 

[efernand1]

I do agree with your sentiments that MNCs and many companies often prioritise their profit over customer well being.

But I feel the example of increased fares by ola, Uber should take into account that fuel prices have nearly doubled …

I however am puzzled how local taxi operators have kept fares unchanged over these 4 years despite the increased fuel cost

With my conversation with local taxi guy who I use regularly as he is reliable. He moved to CNG which is cheaper and effective. Most taxi guys have earned back since CNG came into existence and implementation in cabs. That's why most will lower their rates to keep the income flowing.

 

[jay.elif]

Amazon might well just get away with this. In India and much of the developing or developed world, we like things that are cheap, even if their quality is only reasonably good. Their Basics brand has gone into almost every little product, right from cables, TV's and Air Conditioners. There will be an Amazon basics electric car very soon that will take on and probably even kill the Alto. They have the money, can scale and most important, they have the data, which is the new oil. Its plenty enough to see consumer interests, moods and build products accordingly. It is also evident that the current and upcoming generation does not care much for longevity of a product. If we can flip our iphones with every new release, whats the harm if that AC you bought from Amazon works only for 3 years. There is plenty of disposable income these days. Just replace it.

I had a friend in India, we were talking about this for a few day's backs, He told that Indian people first check that if they getting the same thing or feature at a low price.
I told them that Amazon is going to launch their basic electric car, not even on amazon there are a lot of companies that are going to come to india. even a few companies have signed with India that they are going to develop micro chips in India.
He adds that there is a cycle that goes on in India that people will buy things from the same place on whom they trust and they got proper service that connects them like family. He says that Indians are emotional people. he says people buy the thing at a wholesale rate like a wholesale phone charger, you don't believe they don't buy in bulk they buy one at wholesale rate.
I think there will be a lot of competition between companies in India. but a company like Maruti Suzuki will put their rates down to compete for amazone and other companies.
let see what happens

 

[sandeepmohan]

He told that Indian people first check that if they getting the same thing or feature at a low price.
he says people buy the thing at a wholesale rate like a wholesale phone charger, you don't believe they don't buy in bulk they buy one at wholesale rate.

Its not just Indian people. People around the world cross check the price for a product before they buy it.
I am not sure what your friend means by wholesale rate. If he or she can share an example of what they mean that will be great.
I know someone personally who runs a few Jockey brand stores. He buys garments at whatever Jockey sells it at but at the shop, its the mrp, unless you buy several goods where he may throw in a marginal discount. He is not reducing the price and selling it at wholesale rate. That will be a loss for him.

I was being sarcastic about Amazon selling electric cars. They can do it cause they have the capital. They are starting with their own fleet of electric delivery trucks. Thats already on the road but is made by someone else.

 

[drkrack]

In recent years, How many of the Indian Products can be strictly called Innovative or Creative? How Many of them can be patented by Indian Manfactureres?

Most of them are either rebranded Chinese Products or Copies from Chinese manufacturers. Well, When Indian company rebrands Chinese products and sells them, why can't Amazon? Most of the Amazon Basics stuff is available for cheap on AliExpress. Indian Rebrands are demanding a quite high margins owing to shipping delays and muddled trade relations with China. Amazon Basics (though i personally don't like the quality of their accessories) helps Indian consumers by keeping the price in check. Just look at the price of Indian company accessories which don't have a Basics option.

If AliExpress launches a proper Indian portal, it might be quite disruptive to Amazon and Flipkart. Also many so called innovative Indian rebranding Manfactureres may vanish totally, luckily that's not going to be a problem soon. I think Indian EMarket giants have a role in banning AliExpress App and purchases.

Coming to Meddling with Search results, well that's how American companies operate. Remember the Microsoft vs Opera Suit, where MS deliberately gave edge to its Own bundled browser? As people Came to know about Ola/Uber Malpractices, new local taxi aggregating apps are sprouting frequently. Similarly a new Indian EMarket place may crop up soon, may be from Jio platforms, who knows?

 

[jay.elif]

Its not just Indian people. People around the world cross check the price for a product before they buy it.
I am not sure what your friend means by wholesale rate. If he or she can share an example of what they mean that will be great.
I know someone personally who runs a few Jockey brand stores. He buys garments at whatever Jockey sells it at but at the shop, its the mrp, unless you buy several goods where he may throw in a marginal discount. He is not reducing the price and selling it at wholesale rate. That will be a loss for him.

I was being sarcastic about Amazon selling electric cars. They can do it cause they have the capital. They are starting with their own fleet of electric delivery trucks. Thats already on the road but is made by someone else.

I guess by wholesale rates he means that, for example
If he wants to buy earbuds, let's take its retail price $20 and the wholesale price is $8, so as my friend tells, he may go to a Wholesale dealer and say he wants to buy earbuds in bulk, give me the price listing and (then he will tell him about his imaginary companies or shop which don't exist) "for now, I am taking 1 as a sample to show my owner if he agrees, I will call for order maybe we may need 1000 pecs. so, for now, give me the earbuds in $10", the wholesale dealer may get convinced by this and may give him the earbuds, maybe not in $10 but $14. this is what my friend said when I asked him. this is how they bargain... he also added that whenever someone outside of India come to India and he doesn't know Hindi well some people around there will earbuds double than usual, but some people like to help outsider... I haven't visited India but now I think I should visit there I may get interesting stories for me which I can write in my blog, which I am thinking to start. what do you all think?