Offline traders launch e lala to take on e-tailers

1. Offline traders launch e-lala
to take on e-tailers

2. Contd…
After filing several complaints against e-tail giants such as Snapdeal, Flipkart
and Amazon over alleged FDI violations in ecommerce, the country's apex
traders' body Confederation of All India Traders (CAIT) has finally decided to
fight fire with fire by launching its own hyperlocal ecommerce venture called
elala. Supported by around 5.5 crore small traders with brick-and-mortar
stores, who have been wary of big etailers eating into their revenues, e-lala
aims to be a disruptor in the country's booming e-commerce space. “The
primary difference between a Flipkart and e-lala is that a trader who owns a
physical store can only sell his products on the site. Second, in case of other
e-tailers, all transactions are handled by them. In our case, HDFC Bank will
handle the payment gateway and buyers will pay the sellers directly,“ said
Praveen Khandelwal, general secretary of CAIT.

3. Contd…
E-lala aims to rope in around 50,000 traders as members by March next year.
These sellers would have to pay a commission of around 3% to e-lala for
every transaction. “Other e-tailers take a huge margin from sellers, from 7-
30%. As e-lala takes off, we will ask participating members to take stake in
the company. The aim is to make it an online marketplace for small traders
run by small traders,“ said Khandelwal. For deliveries, e-lala will depend on
the local traders, who will be making the sale. For inter-state transactions,
the portal will partner with logistics companies. Ever since the entry of big
retail, neighbourhood kirana and electronics stores have sought to reinvent
themselves in a bid to ward off competition from foreign as well as domestic
players. In fact, they have been vocal opponent of FDI in multi-brand retail
and the BJP government, which counts small traders as a large vote bank,
has shied away from the entry of overseas players although is yet to reverse
a decision on the issue taken during the UPA regime, fearing it would send
negative signals to global investors.

4. Contd…
Smita Bhagat, branch banking head & co-head -ecommerce, HDFC Bank, told
TOI that the venture is an exciting development in the country's e-commerce
space.
“We are pleased to partner with CAIT in their endeavour to create the largest
ecommerce platform by bringing millions of traders across India online.
HDFC Bank's endeavour is to reach out to the deepest corners of the country
and connect with the smallest of traders to offer them not just digital
payment solutions but complete end-to-end banking products and
services.We believe that to further fuel India's economic growth, the small
traders who form the backbone need the digital leverage. It's therefore
imperative that they are brought into the mainstream; for them to compete
and thri ve,“ she said.

5. For details and bookings contact:-
Parveen Kumar Chadha… THINK TANK
(Founder and C.E.O of Saxbee Consultants & Other-Mother
marketingandcommunicationconsultants.com)
Email :-saxbeeconsultants@gmail.com
Mobile No. +91-9818308353
Address:-First Floor G-20(A), Kirti Nagar, New Delhi India Postal Code-110015