In their race to the topline, Indian e-commerce companies have found a new way to circumvent FDI rule in retail. They are selling discounted clothing from companies such as Abercrombie & Fitch Co that have yet to officially enter the Indian market. They get their shipment from Middle East, Europe and the United States distributors.
According to Reuters, the companies who are doing this are fashionandyou.com, myntra.com, snapdeal.com, dealsandyou.com, yebhi.com and HomeShop 18.
There is another cheaper trick these retailers are doing, where they are buying from local manufacturers who supply the global brands and selling them on the brand name. It’s like putting label on any random product and selling it as brand name.
Seems like it is strictly not legal. Rules for e-Commerce should not be very different than offline commerce. What is your take ? Can Amazon start a fulfillment center in Singapore and start selling in India ?