The virtual stint

Some international labels do offer international shipping as well but getting them delivered almost doubles the cost of the product. This is what deters consumers to buy online internationally.

The Procurements

Multi brand e-retailers are continuously striving to expand their product portfolios to appeal to the discerning young fashionistas of India. They are not only adding to the styles, they are also bringing global fashion to the Indian e-commerce world. To offer these to their patrons, they are using different processes to procure the merchandise. From direct buying from a brand to buying old merchandise at discounted rates, they are doing it all. Yebhi has direct communication and supply from the brand factories itself. Manmohan Aggarwal, CEO, Yebhi.com explains, “Most international labels and brands have authorised suppliers that supply merchandise to retail stores and chains across the region. We connect with these merchants and secure our product through them. The products are exactly the same as the ones you would purchase at the official store and carry same packaging, warranty, labels and instructions.”

Spanish brand Desigual is the latest international label to land on Indian shores by inking an exclusive deal with Jabong. Jordi Balsells, Vice President AP, Desigual on taking the e-commerce route to start operations in India said, “Retail in India has grown by 43 per cent and reached 60 per cent penetration among online users, but is still below the world average. This shows the huge potential that the retail category holds in India with online retail filling the distribution and convenience gap.” For Jabong it was an opportunity to offer exclusivity to its customers. Arun Chandra Mohan, Co-Founder, Jabong.com said, “We are extremely delighted to launch Desigual in India. It is an exclusive tie-up and is part of our overall strategy of bringing new range of product lines to our customers. The fashion apparel market in India is growing tremendously, therefore we see a huge market potential for international players in this segment.” 

Bagittoday works on three different models for international associations. Salil Kumar of Bagittoday tells, “The commercials terms are very fluid. Outright purchase gives the maximum margin to retailers, where the risk of inventory is with the retailer. Some players offer goods on consignment basis and offer lower margins. Then you also have the hybrid model.”

99 labels hosts three day sales and they follow the same format when partnering with global players. Ishita Swarup, CEO, 99 labels and 9rasa shares, “We are a discount website and only sell discounted products. So if an international label wants to sell a discounted product range, we host a three day sale for them. Some of them are sitting on excess stock and we help them liquidate it. Different agreements are applicable in different case and not a one rule is applicable to all. At one time we picked up Abercrombie & Fitch from America which was two-seasons old merchandise. We procured it at much lower price because of which we were able to offer the product to our customers at an unbelievable price.” 

Legality Issues

When buying from factories and manufacturers a stock that is a left over and then importing and selling it in India, the e-retailers have a lot to watch out for. First the import duties and transportation of the products and then the vigilance to sell the products ethically on their portals. The publishing rights for logos and brand names need to be done carefully to avoid any copyright issues. Legal parameters have to be kept in mind so as to not attract a bad name to the website at any given time.

Pick the Pricing

Buying on international websites which offer shipping is a costly affair as we already know, so buying the same product on an Indian website does seem more lucrative to an Indian shopper. Brands now are working towards offering the same price for the product as it is sold internationally. This happens mostly in cases where there is a direct tie up with a brand. Aggarwal reiterates, “The pricing model is defined by the brand. The newer brands entering the market offer greater discounts to ensure greater market share, however popular brands are priced at comparable pricing to international rates. Yebhi.com is able to move very large quantities of merchandise for the brand and gets very competitive pricing from the brands along with additional benefits like extended warranty and returns options.”

Price however will vary taking into account the various tax and duty guidelines for different countries when we talk of importing and selling genuine products. Amit Rawal, Founder & CEO, Elitify tells, “Pricing varies unless selling through a franchisee in India where they try to retain the same price parameters. Import duties and taxes are different in Europe, America, India and other countries. So keeping these in mind, prices can vary across the globe.”

If an e commerce portal is buying old season merchandise from a manufacturer in another country, prices tend to be lower. This is what facilitates low prices of products which attract a customer.  But what rises, it a question on authenticity.

Authenticity Concerns

When people come across a brand that is not available in India, the first question that arises is whether it is genuine or not. If it is available at a ridiculously low price, we tend to believe it is fake; however this may not be the case every time. Some websites do sell fakes but some sell genuine products that have been procured ethically and are genuine. At 99 labels they check all the paperwork and also demand an NOC before they host a sale to assure all that legitimate products are being sold.

Export surplus and fake products from Thailand and China have made their way online as well. Also various brands do not allow their rejected surplus to be sold and have strict policies. Rawal says, “Brands have strict guidelines for disposing of export surplus. So manufacturers, who do wish to sell these products, should sell them as a no brand and sans the logo. By selling fake products they are not only cheating people but also hurting retailers who are buying and selling genuine products in terms of the price. The question that arises is how they are doing it and getting away with it and for how long can they carry this forward? India follows a pro parallel import regime where products can be imported and sold. This is what should be done to offer authenticity.” 

Lack of clarity in Indian in terms of rules and regulations because e-commerce is still very young so our IT regulations and Import and Export Act have very simplistic guidelines and doesn’t get into the grey areas which is why a lot of retailers are being able to get away with selling fakes. For the ones selling genuine products, the road is long and they are welcomed by the shopaholics.