your password has been reset successfully, Please login again.

Myntra And Other E-Tailers Reshuffle To Comply With FDI Laws

E-commerce retailers seek reshuffling a tool to not flout the amended FDI laws.
BY BEx Bureau
BusinessEx
Feb 06, 2019

In order to comply with new FDI laws, Myntra (acquired by Flipkart) has affirmed that it is not acquiring any equity stake in sellers on the platform. In essence, Myntra receives a large sum of business through brand contracts and private brand names. The shift in the companys structure infers that it seeks to sell goods through third-party traders instead of directly selling to brand stores.

Other e-tailers are also trailing the same convention to avert flouting the newly amended FDI laws. Amazon, an inflictor of FDI laws, has brought new sellers on board to retreat from the earlier acquisition of equity stakes.

So, the new changes in the e-tailers are as follows:

  1. Fast-fashion brand chemistry is sold by Wiztech on Myntra.
  2. AKS and Anouk sell through FashionTech, and Mango is sold by WandWagon. (on Myntra)
  3. Unistand and Mayazen sell private labels of Myntra.

(Source: ET news)

An anonymous source, who is conversed with ongoing restructuring, said that this will mean a longer paper trail to be compliant, and a middleman to squeeze margins.

Over this matter, Flipkart (acquirer of Myntra) reports, We did not have any equity ownership issues to contend with in our seller base. We are committed to full compliance with the new regulations. (Source: ET news)

Please add your Comment
SIMILAR News
February 21, 2019
A day back, Supreme court ordered Anil Ambani led-RCom to disburse INR 453 crore within four weeks, ...More
By Jaspreet Kaur
February 21, 2019
DCC, on Thursday, held a meeting to discuss the revival plan of BSNL and MTNL. ...More
By Jaspreet Kaur
February 20, 2019
Airbus, an aerospace major, has established a training centre in north India. ...More
By Jaspreet Kaur
February 20, 2019
Government has launched the second report of states’ ranking 2019 as per the decided framework. ...More
By Jaspreet Kaur
February 19, 2019
Union minister, Suresh Prabhu informs that the ministry has altered the definition of startups. ...More
By Jaspreet Kaur
February 15, 2019
Stocks of Bharti Infratel are trading high in afternoon NSE index. ...More
By Jaspreet Kaur
February 15, 2019
At present, tech companies are concentrating on improving the customer experience. ...More
By Jaspreet Kaur
February 14, 2019
On Thursday, Nikkei slashed 0.02 per cent at 21,139.71. ...More
By Jaspreet Kaur
February 13, 2019
Ramapai is a veteran in the industry and carries up to 24 years of experience. ...More
By Jaspreet Kaur
February 12, 2019
CAPA foresees that the Indian airlines will cut accumulative losses up to $700 million in FY19. ...More
By Jaspreet Kaur
February 12, 2019
Reliance Home Finance has released its Q3 report and proclaims to earn INR 55 crore following tax de ...More
By Jaspreet Kaur
February 11, 2019
The automotive company shared Q3 reports Financial Year 2018 on Monday. ...More
By Jaspreet Kaur