E-commerce Companies such as Urban Ladder and Yepme Plan to Turn into Single-Brand Retailers

New Delhi: Several E-commerce firms, including furniture portal Urban Ladder and garment retailers Zivame, FabAlley and Yepme are considering a strategic venture to turn into single brand retailers, so that they can directly sell their products to customers without stated foreign investments. 

Indian Government drafted a policy last year for single brand retail policy that allow foreign funded retailers to sell products under a single label or a brand through both brick-and-mortar and online stores. 

According to TechSci Research Indian policy allows 100 per cent FDI in ecommerce marketplaces but rules does not allow such marketplaces to stock or sell their own products, they are only allowed to lend their platforms for retailers to sell products, But now Retailers can sell their product without the interference of FDI under single Brand Store by Remodeling their business structures in to one single brand operation, Online Retailers will be able to hold and stock to sell their own inventory online.

According to recent report published by TechSci Research, “India E-commerce Market Forecast & Opportunities, 2020”, the country’s e-commerce market is projected to grow at a CAGR of more than 36% during 2015-2020. E-services segment, which comprises online travel, online payments, online classifieds, etc., is expected to continue its domination through 2020. However, the e-tail segment that includes electronics, apparels & accessories, health, and personal care, etc., is expected to witness significantly higher market growth compared to e-services segment over the next five years. During 2015-20, the western region is expected to remain the largest e-commerce market in the country. Major players operating in India’s e-tail market include Flipkart, Snapdeal and Amazon.