In India, the Department for Promotion of Industry and Internal Trade (DPIIT) has asked e-commerce platforms to display “country of origin” on new products listed on their websites, possibly by on August 1, with items inherited by October 1, without stipulating a strict deadline. But retailers say the target date is difficult and unrealistic. Until now, it was only a consultation between DPIIT and 30 e-commerce platforms. Analysts expect the government to decide soon on the limits of the relevant legal provisions. The move is seen as India’s latest move to limit imports from China amid public calls to boycott Chinese goods after deadly border clashes in which 20 Indian soldiers were killed.
Despite growing tensions with China, if the Indian government implements the policy, it would mainly create new hurdles for small online sellers who are already struggling due to the COVID-19 outbreak. Under the new legislation, SMEs are expected to face the growing burden of regulatory obligations. Obviously, this would increase their expenses and reduce their net profit margins. Additionally, it exposes some high-risk businesses and desperate sellers to common issues such as fraud, bribery, and corruption. Additionally, the policy urges e-commerce platforms to implement the changes, but fails to recognize that the burden will fall primarily on manufacturers, sellers and SMEs. These industry players are already struggling to operate effectively due to the anticipated global recession and the COVID-19 pandemic; thus, a return to offline is not possible as consumers stay away from physical stores as the crisis continues.
The Jing Plug reports on high-profile news and features our editorial team’s analysis of key implications for the luxury industry. In the recurring column, we analyze everything from product declines and mergers to heated debates popping up on Chinese social media.