E Commerce Definition : a Space Ship ?
I will repeat what I have said many times earlier
As long as our imagination remains confined to “ SHIP “ as a mode of traversing huge “ DISTANCES “ , we will never manage to go very far into the intergalactic “ SPACE “
Concept of a “ SHIP “ is good enough for sailing on “ OCEANS “ girdling our earth but totally inadequate for SPACE
We will conquer the SPACE only when we stop thinking in terms of a SHIP and start thinking in the terms of 4th dimension , called TIME
Why this long prologue ?
For over 2 years , a Committee of Govt Secretaries has been trying to come up with a definition of :
Here is today’s news :
The policy is expected to set a new definition for ecommerce that will pin greater liability and responsibility on online retailers………….
A group of nine secretaries led by commerce secretary Rita Teaotia will meet on Friday to discuss data localisation, FDI in inventory-based online retail, consumer protection and emerging technologies as India seeks to finalise an ecommerce policy by year-end.
It suggested this for business-to consumer ecommerce models ,
* with Indian entrepreneurship and control,
* with stipulations such as less than 51% stake for a single foreign entity as the
ultimate beneficiary owner (UBO),
* 100% selling of
* made-in-India goods, and the
* founder/promoter to be a resident of India.
“ This would require defining made-in-India products and their accreditation by a competent authority,” the subgroup submitted.
What a short-sightedness !
If you want to know why this “ Definition “ of E Commerce is bound to fail , read :
E – Commerce is Easy Commerce ! [ 15 Nov 2015 ]
One Day , Everything will Sell Online ! [ 29 March 2016 ]
Missing the Woods for the Tree ? [ 12 Aug 2016 ]
3 Laws of E – Commerce [ 04 Dec 2017 ]
ECommerce : Broad Policy / Elements [ 14 Mar 2018 ]
And , as far as defining what is “ Made in India “ is concerned , I believe , government goes by “ Percentage of Value Addition “ locally
But , this is a very difficult and time-consuming exercise
Even when possible, its result holds good for a very short period in a dynamic situation
A manufactured “ local product “ could have hundreds of components ( both, local and imported )
And those “ local components “ could have “ imported “ raw materials or intermediates
These days , a product could be,
* patented in one country ( concept )
* designed in another country
* developed ( detail manufacturing drawings ) in another country
* components made all over the World
* Sub-Assemblies ( of those components ) carried out in another country
* Final Assembly done in another country
* Packaging done in another country
* Offered for sale on ONLINE e-commerce portals in another country
* Marketed by agencies located all over the World
* Delivered using manpower / drones / supply chains of several countries
* Financed by funds from all over the world
At which “ Level “ of Value Addition , does a product become “ local “ ?
And if I download a ” Product Drawings / Design ” over the internet and then ” 3D Print ” it in my garage ( using ” imported ” resins ) , then is that a ” local ” product ?
06 July 2018
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