In a decision that might affect millions of households all over India, small businesses and traders opposing the Walmart-Flipkart agreement have decided to go on a countrywide strike in the next week.
Medium and small-sized businesses fear that the entry of Walmart into India might lower their profits as the “Beast of Bentonville” has been recognized to lower the margins of companies so as to provide the best cost to users. Previous month, Walmart purchased 77% of the Bengaluru-located firm for almost $16 Billion, making it one of the largest agreements in the e-commerce industry all over the world.
Consequently, traders in India consisting distributors, wholesalers, and sellers on e-commerce website left no stone unturned to criticize the entry of the U.S. retailer into the Indian ground.
Secretary general of CAIT (Confederation of All India Traders), Praveen Khandelwal said, “Since the past 5 Years, we are knocking the government doors for conveying reforms into e-commerce. But all of that has gone unanswered, which motivated Walmart to purchase Flipkart and make an indirect entry into retail trade.” Now CAIT is a separate body that symbolizes small businesses all over India.
“The basic essentials of the agreement are based on circumvention of the rule with an original goal to manipulate, exploit, and control the retail segment, comprising e-commerce,” he claimed.
On a similar note, Metro Shoes has filed a lawsuit against Flipkart in the Bombay High Court blaming that Flipkart is trading Metronaut (a private brand) that is dishonestly akin to eponymous brand of Metro. It also blamed Flipkart of trading shoes amongst other goods below the brand name.
The lawyer representing Metro, Piyush Shah, claimed that he has filed the lawsuit this week. “They are utilizing the name of Metronaut that is akin to Metro,” Shah claimed. “It is a case of trademark infringement.”