As we all know, with the development of technology, the Internet is changing people's lifestyles. However, India** wants to introduce new policies to completely shut down the e-commerce industry. This news has made many e-commerce practitioners feel uneasy.
Commenting on the decision, Alibaba founder Jack Ma expressed concern about the prospects of the e-commerce industry. He also stressed that if the e-commerce industry collapses, 30 million people could lose their jobs.
So, is this a decision made by India** for the benefit of the people, or is it for another inhuman purpose?
With the development of the internet, e-commerce in India is growing rapidly. In 2020, India's e-commerce sales reached Rs 25,000 crore and will further increase to Rs 36,000 crore in 2021, proving the huge potential of the Indian e-commerce market.
India has a huge market of 1.3 billion people, and the boom in e-commerce is inseparable from the change in the shopping Xi habits of Indian consumers. In recent years, online shopping has become the preferred choice of Indian consumers. More and more Indians are adapting and enjoying the convenience of online shopping.
However, the rapid development of e-commerce has also had an impact on India's traditional real economy. The business of brick-and-mortar stores is shrinking day by day, and many old stores are forced to close, which has even caused dissatisfaction among brick-and-mortar merchants.
Especially after the outbreak of the epidemic, the development advantage of India's manufacturing industry is rapidly weakening, and the epidemic control measures have directly led to the paralysis of a large number of labor-intensive industries.
The Indian textile industry is a prime example. During the pandemic, it lost nearly 30% of its production capacity. If the production capacity of enterprises declines, it will naturally face a wave of bankruptcy and unemployment.
In addition to the textile industry, India's tourism and catering industries have also been hit harder during the lockdown, resulting in a massive loss of jobs. After the end of the epidemic, India's GDP growth hit a new low in nearly a decade, at only 31%。The severe employment situation and people's livelihood difficulties have become two thorny problems facing India.
In order to protect the real economy, India** plans to close the e-commerce industry, which will undoubtedly lead to the loss of 30 million e-commerce workers and have a huge impact on the general public.
Amazon and Flipkart alone have directly and indirectly created 1.5 million jobs, not counting the hundreds of thousands of small and micro businesses and self-employed people who make a living through e-commerce platforms. Once e-commerce is forced to shut down, these people will face unemployment.
The most important thing is to analyze the changes in e-commerce and its impact on the economy and people's livelihood. The rise of e-commerce is changing people's lifestyles and socio-economic patterns at an unprecedented rate.
The vigorous development of e-commerce platforms has realized the seamless connection between merchants and consumers, and has also greatly stimulated the vitality of the market economy. Nowadays, e-commerce has become an indispensable part of today's society, and the convenience it brings is profoundly affecting everyone.
Represented by leading e-commerce companies such as Alibaba and JD.com, they have seized the opportunities of the digital economy and rapidly emerged as industry leaders. The business model innovation and technology application behind these enterprises have created new consumption scenarios.
Users can enjoy global business opportunities and choices without leaving their homes. Intelligent recommendation algorithms make products closer to everyone's preferences and make the shopping experience more personalized. Technologies such as mobile payments have solved transaction security issues and given consumers new ways to shop.
At the same time, e-commerce is also profoundly influencing and transforming the real economy. It has accelerated the speed of industrial upgrading and forced many traditional enterprises to carry out digital transformation. Many industries have struggled after being hit by e-commerce, but it has also stimulated them to step out of their comfort zone and seek breakthroughs.
Not only that, e-commerce has brought huge dividends to employment and entrepreneurship. Through e-commerce platforms, individuals can flexibly open stores to sell goods, bring entrepreneurial opportunities to women and people in remote areas, and help stimulate economic vitality.
Of course, there are some problems in the e-commerce industry that need to be solved urgently. For example, transaction security, customer privacy protection, and counterfeit and shoddy goods all need to be regulated.
For India**, shutting down the e-commerce industry outright is not only brutal, but also does not help solve the underlying problem. **It is necessary to find a balance between promoting innovation and development and maintaining fairness, and guide the healthy development of e-commerce with more scientific and progressive policies to form a positive interaction.
Compared with physical stores, e-commerce can save high operating costs such as store rent, and serve users with lower **. In terms of the cost of goods alone, there is no difference.
However, e-commerce can greatly save costs such as store rent, and attract consumers with more favorable prices. Although taking into account additional costs such as freight, e-commerce as a whole still has obvious advantages. The closure of e-commerce will inevitably deprive Indian consumers of their right to choose cheap products, which will take a big toll on their purchasing power.
Even taking into account the additional shipping costs, e-commerce as a whole** is still more attractive to consumers. In the face of fierce competition from e-commerce, the traditional brick-and-mortar retail industry is also struggling to operate under the pressure of declining customer traffic. India** believes that the closure of e-commerce is to protect the country's economic lifeline.
If India** insists on closing e-commerce platforms, it will not only damage employment, but also seriously hinder the development of the digital economy and weaken India's influence and voice in the field of e-commerce. In the long run, India** should adopt a more gradual and open approach.
For example, e-commerce companies can be given time to adjust and set a threshold for fair competition, rather than simply imposing a ban. Because the market mechanism is the optimal way to allocate resources, the complete shutdown of e-commerce will not only harm e-commerce, but also harm the development of physical retail.
In fact, e-commerce and the real economy are not opposites, but should achieve mutual prosperity and development. E-commerce platforms can open physical stores to improve user experience, and physical stores can also expand their business through online channels.
Only through integrated development can we achieve comprehensive economic upgrading. The top priority is to guide e-commerce to achieve positive interaction with the real economy through improving policies.
We must see that e-commerce has brought great convenience to people's lives, which is difficult to achieve in traditional retail. Relying solely on administrative means to suppress e-commerce not only stifles innovation, but also damages the credibility of the public. The most important thing now is to resolve contradictions and achieve a win-win situation, rather than sticking to the rules and insisting on going their own way.
India** cannot afford to sacrifice the huge economic value of e-commerce because of temporary conservatism. On the contrary, we should actively promote the transformation and upgrading of the traditional retail industry and form a pattern of complementary advantages with e-commerce. Only with an open and inclusive attitude can we truly promote the common prosperity of all kinds of enterprises and better benefit the people.