New e-comm rules may help boost topline for offline retailers by Rs 10,000-12,000 cr: CRISIL
Tighter norms for e-commerce players could help boost revenues of brick and mortar (B&M) retail stores by 150-200 basis points (bps) or Rs 10,000-12,000 crore in the 2020 fiscal, according to ratings agency CRISIL.
"Revenue growth of B&M retailers could increase 150-200 bps in fiscal 2020, as e-retailers re-engineer business models to conform to the revised and more stringent regulations, which would slow down their revenue growth," CRISIL said in a statement.
In December, the government introduced new regulations that would bar online marketplaces with foreign investments from selling products of the companies where they hold stakes, and ban exclusive marketing arrangements.
These norms, which are effective February 1, would hit Amazon and Walmart-backed Flipkart the hardest. These two ecommerce platforms are also the largest in the country.
"Nearly 35-40 per cent of e-retail industry sales, amounting to Rs 35,000-40,000 crore, could be impacted due to the tightened ...