As the government remains firm on bringing revised ecommerce FDI norms into effect in India, barring online sellers from exclusive sales and brands that have equity interests – giants like Amazon and Walmart-owned Flipkart has its electronic brand partners who sell exclusively on their platforms that they will be able to operate like they do now, even after new FDI norms. Because, the sale must go on.
As per the new revised new foreign investment restrictions aka FDI norms that are to be implemented from February 1, 2019 – any ecommerce company cannot sell products from brands in which they have an equity interest and also for exclusive selling deals. This means, online websites like will no more be able to sell certain products with “exclusive” tags, unless the government delays the implementation date of norms by six months, instead of February 1, 2019.
The new FDI norms are seen as something that will jolt not only the ecommerce websites, but also brands like BPL, iFFalcon, Blaupunkt TV, Sanyo, Thomson, Asus and Meizu operate only online in India through Amazon or Flipkart. While other brands like Samsung, Xiaomi, Realme, Honor, Huawei, Onida, TCL, OnePlus and Vu do sell offline, but they majorly rely on ecommerce and the online-exclusive launches and models are their main sources to attract more customers. Hence, the changes might cause major customer disruptions for these companies, especially in smartphone, gadgets and electronic sector.
But, Amazon and Walmart-owned Flipkart are telling their brand partners that they will be able to sell their wares exclusively on these platforms just like they do currently, even after new FDI. The only change would be needed in making “some tweaks and rephrasing of agreements” because the ecommerce websites cannot mandate exclusivity, but these brands can still be exclusive to them as they are free to adopt their channel and sales strategy. Other than that, tags like #OnlyOnFlipkart or #AmazonExclusive will be replaced by ones like #JustHere. As of now, these online sellers believe and ensure that the sale must, and will go on – even after revision of FDI norms.