E-tailers prepare to deliver non-essentials; seek clarity on guidelines

Industry players as well as several consumer organisations have been requesting the government for expansion of the list of essential products.

E-commerce companies are gearing up to start shipping non-essential items to customers in orange and green zones from Monday. However, sales could be impacted as metros and other cities like Delhi, Bengaluru, Ahmedabad and Pune have been classified under red zones.

According to industry executives, e-commerce companies like Amazon India and Walmart-backed Flipkart have been engaging closely with sellers to help them prepare for starting shipment of non-essential products as the third phase of lockdown comes into effect from May 4.

On Friday, the home ministry had announced a two-week extension of lockdown but said there would be certain relaxations for orange and green zones.

Under the latest rules, e-commerce activities in red zones, which cover large cities like Delhi, Mumbai, Bengaluru, Pune and Hyderabad are permitted only for essential goods during the third phase of lockdown that ends on May 17.

A senior industry executive, who did not wish to be named, said states including Karnataka, Rajasthan, Maharashtra and Uttar Pradesh have also notified their guidelines for online commerce platforms that are similar to those issued by the Centre.

The executive said e-commerce companies that follow the marketplace model (like Amazon India, Flipkart and Snapdeal) could face some challenge as many of their sellers are either located or have their warehouses in red zones.

The home ministry guidelines remain unclear on operations of these marketplace sellers of non-essential products, who are in red zones. So, they are dependent on how local authorities issue their guidelines, he said.

21-day lockdown: E-commerce firms set to resume work after police assurance

The Delhi police issued a statement saying they were proactively engaging with e-commerce portals and were issuing passes to ensure agents were able to commute seamlessly.

Walmart-owned Flipkart said on Wednesday it would resume services and Amazon said it was working with the government to enable its deliveries after state governments reached out to the firms, which had temporarily stopped accepting new orders amid reports of police high-handedness.

The Delhi police issued a statement saying they were proactively engaging with e-commerce portals and were issuing passes to ensure agents were able to commute seamlessly and deliver essential goods to residents during the 21-day lockdown. The Bengaluru police, too, came out with guidelines for issuing curfew passes.

Following this, Flipkart Chief Executive Officer Kalyan Krishnamurthy said, “We have been assured of the safe and smooth passage of our supply chain and delivery executives by local law enforcement authorities and are resuming our grocery and essentials services later today (Wednesday).”

Similarly, a note on Amazon India's Pantry page said, “Dear customers, due to local restrictions, we are not able to deliver. We are working with the government authorities to enable us to deliver essential items. We will communicate through e-mail/SMS when we have an update”. It also offered customers the option of cancelling orders.

These developments came after e-commerce firms sought the support of local governments and police authorities to meet customers’ needs after there were reports of some deliver personnel being beaten up while on duty. Additionally, officials of the Confederation of All India Traders met Union Home Secretary Ajay Bhalla, Department for Promotion of Industry and Internal Trade Secretary Guru Prasad Mohpatra and highlighted the issues faced.

Coronavirus: India Inc steps up act to contain crisis as tally reaches 29

Across the country, companies have stepped up their act to contain the crisis. IT and other new economy firms seem to have taken a lead.

Mindspace IT Park, Hyderabad’s largest office hub spread over several acres, was a centre of panic on Wednesday as a techie tested positive for coronavirus. The complex, housing many marquee brands, caught on to the news in no time, prompting employers to send their staff home.

An employee of Dutch company DSM Shared Services, the software professional had recently returned from an assignment in Italy. Hers was the second confirmed case of the virus in Telangana. “Our thoughts are with our colleague, who is doing relatively well and is being treated in quarantine,” the company said in an internal e-mail.

More than 1,000 km away, in Gurugram, next to New Delhi, another person tested positive, this time in the Paytm office, taking India’s tally to 29. He too had returned from a vacation in Italy. The company has asked its staff to work from home for a couple of days while the office gets sanitised.

Across the country, India Inc has stepped up its act to contain the crisis. IT and new-economy companies seem to have taken a lead.

At the Manyata Tech Park in Bengaluru, a US-headquartered software product company advised its employees to work from home till Friday, after an associate who had travelled from an affected country showed flu-like symptoms. Even though the person was declared asymptomatic by medical experts, the company began disinfecting the campus as a precautionary measure.

While online major Amazon confirmed its first case of coronavirus in its Seattle office, the company’s India unit felt the ripple effect. Amazon India has imposed travel restrictions, advising employees to prioritise health over efficiency. According to the advisory, all domestic travels by the employees can be undertaken only after consulting the manager while approval from vice-president is required for international travels.

Walmart–owned e-commerce firm Flipkart too has imposed a complete ban on all business travels, both domestic and international. In case the travel is unavoidable, CEO Kalyan Krishnamurthy must give an approval.

Amazon, Mercedes Benz employees in Bengaluru test positive for swine flu

As a precautionary measure, both companies have started sanitising their offices.

A positive case of H1N1 (swine flu) has been detected at the Bengaluru office of e-commerce giant Amazon. The employee did not show any signs of flu while at work and had stopped coming to office five days ago, said a source.

“As a precautionary measure, Amazon is sanitising the floor on which the employee worked. All the employees who came in contact with the patient prior to him going on leave have been informed,” added the source. The company has advised these employees to work from home and take immediate medical help if they start showing any signs of flu. Amazon confirmed the development to Business Standard.

In another development, an employee of the research and development centre of Mercedes Benz in Bengaluru was also tested positive for H1N1. As a precautionary measure, the company has started sanitising its offices as well, said a source.

Last month, two employees of software company SAP, too, had tested positive in Bengaluru. The Indian arm of the German software group company had then shut down all offices in the country from February 20-28 for sanitisation.

TDS levy on e-comm transactions may impact working capital: Amit Agarwal

Agarwalwas speaking at 14th India Digital Summit organised by Internet and Mobile Association of India (IAMAI).

Theproposed levy of1 per cent TDS on e-commerce transactions announced in the recent Budget may seemlike a harmless 'papercut' but could impactworking capital of small businesses,Amit Agarwal, country head of Amazon India and Chairman of industry body IAMAI said on Wednesday.

Agarwal said the focus for India should be on "removing friction and bottlenecks" and added that the target of USD 1 trillion digital economy is not far fetched for a country that is seen as a digital powerhouse.

"Just look at the most recent Budget. There is an introduction of tax collection at source. These seem like harmless papercuts but really impact the working capital of small businesses," Agarwal said.

A lot can be achieved by focusing on removing friction, he said expressing hope that there will be more attention in enabling this space for successful entrepreneurs.

Agarwalwas speaking at 14th India Digital Summit organised by Internet and Mobile Association of India (IAMAI).

Agarwal further advocated a razor sharp focus on skilling, grassroot entrepreneurship, driving equal opportunity through greater women's participation as well as Artificial Intelligence backed solutions, and said a multi pronged approach can enable India to meet its target of USD 5 trillion economy.

He exuded confidence that bold reforms of last few years and India's rising tech clout globally backed by success of Aadhaar, UPI and other initiativeswill help the country scale new highs.

The Union Budget announced on February 1 has proposed a new levy of 1 per cent TDS (tax deducted at source)on e-commerce transactions, a move that could increase burden on sellers on such platforms.

"In order to widen and deepen the tax net by bringing participants of e-commerce (sellers) within tax net, it is proposed to insert a new section 194-O in the Act so as to provide for a new levy of TDS at the rate of one per cent," according to Budget 2020-21 documents.

Amazon India inks two long-term agreements with Future Retail, FCL

The development comes after Amazon had agreed to buy 49% stake in Future Coupons Ltd.

Company News : Amazon India on Monday said it has entered into long-term business agreements with Future Group for expanding the reach of the latter's retail stores and consumer brands through its online marketplace. The development comes after Amazon had agreed to buy 49 per cent stake in Future Coupons Ltd that in turn holds stake in Future Retail Ltd (FRL) last year.

"FRL and Amazon India signed two agreements focusing on key categories - grocery and general merchandise, and fashion and footwear," according to a statement released Monday.

Amazon India will also become the authorised online sales channel for FRL stores, and FRL will ensure participation of its relevant stores and programmes on the Amazon India marketplace, it added.

Besides, Future Consumer Ltd (FCL) has also inked a long-term agreement with Amazon Retail India Pvt Ltd (ARIPL) for distribution of Future Consumer's portfolio of brands online. Some of FCL brands include Tasty Treat, Voom, Dreamery, Karmiq, Mother Earth, Kara, CleanMate and others.

As part of the partnership, FRL will augment existing store-infrastructure at its retail outlets for facilitating seamless packaging and pickup of products ordered online. FRL and Amazon India have already launched this service across 22 stores. Both companies plan on rolling this out across the entire FRL store chain based on agreed timelines.

"FRL will leverage its existing infrastructure, strong product knowledge and extensive brand portfolio resulting in higher store productivity and improved margins," as per the statement.

Currently, FRL attracts over 350 million footfalls across its retail network, and Amazon India's marketplace will enable FRL to reach a wider customer base.

Also, FRL will list on the Amazon Prime Now programme, allowing customers to get food, grocery and general merchandise delivery within two hours in Delhi, Mumbai, Bengaluru, and Hyderabad.

FRL plans to soon list stores like Big Bazaar, and Foodhall in more cites on the Amazon India marketplace.

Walmart is expected to pump in $1.2 billion to fund Flipkart's operations

The retail giant's total revenue increased $1.2 billion or 1 per cent for the three months ended April 30, 2019, due to the addition of Flipkart's net sales besides other factors.

Business Standard : Walmart is expected to pump $1.2 billion into Flipkart's operations Flipkart. The world’s largest retailer acquired homegrown e-commerce company Flipkart for $16 billion last year, pitching it in direct competition with its rival Amazon.com in a battle for dominance of India’s online retail market.

As of April 30, 2019, and January 31, 2019, Walmart reported cash and cash equivalents of $2.7 billion and $2.8 billion, respectively, according to filings with the United States Securities and Exchange Commission made by Walmart last week. Of the $2.7 billion of cash, approximately $1.2 billion can only be accessed through dividends or inter-company financing arrangements, subject to approval of Flipkart's minority shareholders. 

“However, this cash is expected to be utilised to fund the operations of Flipkart,” said the filing.

The net cash used by the Bentonville, Arkansas-based company in financing activities decreased $1.6 billion for the three months ended April 2019, compared to the same period in the previous financial year. This decrease was partially impacted by the Flipkart acquisition. Walmart reported a working capital deficit of $18.1 billion on April 30, 2019, compared to $21.5 billion in 2018. This decline was primarily due to higher current assets as a result of the consolidation of Flipkart.

Due to the anticipation of announcing Flipkart’s acquisition, Walmart had suspended its share repurchases. However, the share repurchases have increased $1.6 billion for the three months ended April 30, 2019, compared to the same period in the previous finanical year.

Walmart’s total revenue increased $1.2 billion or 1 per cent in the three months to April 30, 2019, when compared to the same period in the previous fiscal year. This increase was due to the addition of Flipkart’s net sales besides other factors.

During April-May this year, Walmart President and Chief Executive Officer (CEO) Doug McMillon and Judith McKenna, president and CEO of Walmart International, visited India to assess the progress made by Flipkart. They also met the senior leadership of Flipkart and group companies — Myntra and PhonePe — and is learnt to have discussed strategy to take on Amazon.

Amazon has stepped up its investment in India and recently pumped Rs 2,800 crore into its marketplace. The fresh investment comes at a time when the Seattle-headquartered firm has logged out from China. In December last year, Amazon invested Rs 2,200 crore in its Indian entity. Jeff Bezos-led Amazon has so far made over $5-billion investments in India. Some reports suggest that the company may have invested an additional $2 billion on top of that.

Amazon saw 6% growth in new India customers with recent festive sales

The e-commerce major has said it is buoyed to keep investing in India as it sees good uptick in sales and a far-reaching presence in the country.

US online retail giant Amazon has said that it witnessed 6 per cent growth in new customer additions in India, thanks to its festive season sales that kicked off in early October. The growth came on the back of yet another quarter of subdued growth in international sales, which includes India, in the quarter ended September.

On a call with analysts on Thursday, Brian T Olsavsky, chief financial officer at Amazon.com, attributed part of the growth slowdown in the company’s international business to festive sales in India being pushed completely to the fourth quarter, unlike in the previous year. The company reported a revenue of $15.5 billion from its international business during the quarter.

“On a year-over-year basis, I think you have to look at two things. We did the Souq acquisition last year in May. So the full pick-up on that year-over-year was in 2017 and now we're lapping that. There's also material change in the Diwali calendar in India. About half of our Diwali sales last year were in Q3. This year they'll be fully in Q4,” Olsavsky said.

While growth of its earnings from international markets slowed, Amazon continued to reduce its losses, which came down to $385 million in Q3 from $494 million in Q2. On a year-on-year basis, that represents a nearly 2.5 times reduction in losses from international sales for Amazon. It had reported a loss of $936 million in Q3 2017.

This comes despite Amazon continuing to invest heavily in India, with the investment pegged to top $2 billion in the current financial year. The company has already pumped in over 77 billion in three tranches of Rs 26 billion, Rs 23 billion and Rs 27 billion into its India business in May, July and August respectively.

Amazon says it’s buoyed to keep investing in India as it sees good uptick in sales and a far-reaching presence in the country. It is also looking to overtake local rival Flipkart which is now backed by Walmart. The US retail giant picked up 77 per cent stake in the Indian company for a massive $16 billion this year.

“India, although Diwali moved into Q4, so far is going really well. We've seen great response from customers. We've had 6 per cent growth in new customers during the period. Orders are coming in from 99 per cent of the pin codes in the countries. So, great first wave of what we call the Amazon's Great Indian Festival, which just lead into Diwali,” added Olsavsky.

Amazon reported record profits of $2.9 billion for the third quarter on Thursday with sales climbing nearly 30 per cent to $56.6 billion. But investors penalised the stock for missing street estimates, which had been set higher due to expectations of strong sales performance during the company’s Prime Day sales event which took place in the quarter.

While Amazon’s stock price was up 7 per cent at $1,782.17 when the markets closed, it fell to $1,668.01 in after-hours trading.

Business Standard

From TV to smartphone, Xiaomi to announce five 'smart' products on Sep 27

Xiaomi has been teasing the upcoming products on social media channels, sharing hints on what to expect from the upcoming devices.

Chinese electronics manufacturer Xiaomi is gearing up to announce five new products in India on September 27. These products include a new smartphone, air purifier, television, security camera and a fitness band. Teaser page of these products, except for the smartphone, is already live on Amazon India, confirming that at least four of these products would be available exclusively on the e-commerce platform.

Xiaomi has been teasing the upcoming products on social media channels, sharing hints on what to expect from the upcoming devices. The company’s Twitter channel now has a new cover image with a title ‘Smarter Living’ embossed on a red background featuring at least four products i.e. a fitness band, voice-enabled television, smartphone and a security camera.

Xiaomi Mi Band 3

The upcoming fitness band is expected to be the Mi Band 3, a successor of the Mi Band 2 that was launched in India in 2016. The Mi Band 3 was launched in China earlier this year. Compared to the Mi Band 2, the Mi Band 3 features a bigger capacitive OLED screen with curved edges. The water resistant fitness band also features near field communication (NFC) chip for one touch connectivity. The Mi Band 3 is also capable of receiving app and call notifications and has motion tracking and health management features. The Mi Band 3 is compatible with devices running Android 4.4 and above or iOS 9.0 and above.

Xiaomi Voice-enabled Smart TV

Xiaomi forayed into India’s television market with the launch of Xiaomi Mi TV 4. The upcoming television teaser on Xiaomi’s Twitter page shows a mic icon, suggesting that the upcoming television would have voice input support for easier search and navigation across user interface.

Xiaomi Security Camera

This is going to be a new addition in Xiaomi India portfolio. Though the company already has security camera portfolio in its home country, this would be the first such product that would be launched in India. The security camera is expected to feature a 360-degree lens, mobile connectivity option and internet support for real time monitoring from remote locations.

Business Standard

OnePlus 6T teaser goes live on Amazon, TV ad with Amitabh Bachchan out too

The OnePlus 6T is expected to be launching in the middle of October, with retail available shortly after the launch.

Chinese smartphone manufacturer OnePlus is gearing up to launch the OnePlus 6T soon. The phone teaser is now live on e-commerce platform Amazon, and a television commercial featuring Bollywood celebrity Amitabh Bachchan is out too. 

This is exactly how OnePlus started promoting the yesteryear flagship OnePlus 5T before the launch. With the teaser page out and television commercial featuring on different channels, it is safe to assume that the launch is now only days away.

While the teaser on Amazon India does not reveal anything, the television commercial provides some details on the design aspect of the upcoming OnePlus flagship.

 In the commercial, Amitabh Bachchan is seen holding the phone and his index finger resting below the rear camera module. The phone shown in the advertisement wears midnight black design (matte black edition) that was introduced with the OnePlus 6. In recent reports, the OnePlus 6T was speculated to feature a tri-camera module on the back. In the commercial, however, the phone is shown sporting a dual camera module and Amitabh Bachchan’s index finger strategically covering rest of the space, leaving the speculation unanswered.

ALSO READ: Apple leads global premium phone market; OnePlus enters top 5: Counterpoint

Speaking of other upgrades, the OnePlus 6T is confirmed to get an in-display fingerprint sensor technology, where the sensor is placed beneath the display panel. This allows a part of the screen to double up as a biometric recognition module for identifying fingerprints for the phone's unlocking mechanism.

The in-display fingerprint module will free up the space on the back of the OnePlus 6T without compromising on the overall design theme. OnePlus’ sister company, Vivo, has been offering this technology in some of its premium models, such as the Vivo X21, Vivo Nex and the Vivo V11 Pro.

The OnePlus 6T is also reported to get a new screen format, with a tiny notch on top. Though the notch area in the OnePlus 6 is among the smallest when compared with other notch screen-based smartphones, it would be trimmed even more and reduced to a size of a big dot, enough to accommodate just the front camera. The Vivo V11 Pro or the Oppo F9 Pro are two smartphones that currently boast similar screen format design.

As for the trade off, the OnePlus 6T is confirmed to drop the 3.5mm audio jack to accommodate a bigger capacity battery. Other technical specifications of the upcoming smartphone are expected to be similar to the OnePlus 6 i.e. Qualcomm Snapdragon 845 system-on-chip (SoC) and three RAM & storage configurations – 6GB/64GB, 8GB/128GB and 8GB/256GB.

Article Source Business Standard