Offline shops may be open 24×7, time for etailers to find new strategy?

With an aim to create a level-playing field for brick-and-mortar retail outlets and online retail, the government is planning to introduce a new law.

As per this ET news report, this proposed new law once implemented would allow malls, restaurants, theatres and local stores to remain open throughout the night. An official from the Labour Ministry confirmed the news and said, “We have begun discussions…The first draft of the new law is likely to be finalised in a month.”

Great news for the Indian Retail Industry

The online retail industry still accounts for a small percentage (less than 1%) when compared to offline traditional retail. But, with millions of money pumped in online marketplaces like Flipkart, Snapdeal, Amazon, Myntra and Jabong, the online retail industry is growing at a jet speed.

This poses a huge problem for traditional retail. One of the major hindrances that retail stores face is the time restriction to shut down shops. This makes it difficult for them to compete with etailers, as it is available 24/7.

With this new law, traditional retailers will get an opportunity to compete with its online competitors and earn more revenue. It will be much easier to do business and expand.

Industry watchers happy with modernizing retail

Our economy has changed so has the lifestyle of Indian citizens where shutting down shops early means a golden opportunity lost. This is why retail experts believe that scraping the old law and drafting a modern one was long overdue.

BP Panty advisor to the FICCI said, “The retailers want to run shops 24×7 and this kind of flexibility will help them get more business. Besides, consumers, especially working couples, will get increased access to shopping even at night.

Kumar Rajgopalan, CEO of the Retailers Association of India also expressed his delight by stating, “A central guiding law with no mandate on timing will be of immense use to retailers and would help create more employment besides addressing the needs of consumers.”

But labour laws should be kept in mind

Introducing a law, which will let brick-and-mortar outlets to run round the clock, shouldn’t lead to exploitation of labour. Attention must be given that organizations keep the working hours realistic and start different work-shifts so that employees are not oppressed.

It will be interesting to see how online retailers react to this new law. Will they have to draw a new game plan to compete with traditional retail? Share your views.