Online retailer Wal-Mart is trying to get a piece of Indian clothing online by offering the products online without paying for delivery, a report has claimed.
In a recent article for The Hindu, journalist Neeraj Sharma claimed Wal-mart has been trying to use Indian customers as its pawns to sell its clothing online.
“The company is trying its best to grab the online retail market, in order to make more money,” Sharma wrote.
“But this is not a good idea for any Indian business owner.
This is a business venture, and the profits from the venture will go to the owners of the stores that will be sold to the online retailers,” Sharma added.
The article alleges Wal-Marts India Ltd.
has been attempting to buy clothes online by selling it to Indian customers.
It also claims that the online retailer is attempting to “impose strict and unreasonable restrictions on customers”, including a limit on the number of items that can be purchased in a day, and restrictions on the quantity of clothing it will be selling in a month.
“The retailer’s strategy is to use its customer base to make money by making online shopping less convenient for Indian consumers,” Sharma said.
“They are targeting Indians by offering cheap, high quality Indian clothes online, but it is all a scam.”
In the long run, Wal-Mars India will suffer, since it will have to sell even more expensive Indian clothing and will lose much of its customerbase,” he added.
Wal-Mart India, which has been operating in India since 2006, has faced a backlash from India’s largest online retailer Flipkart after it said it was closing down stores in the country.
On Wednesday, the company said it will also close the stores in Delhi, Mumbai, Bengaluru, Hyderabad and Ahmedabad, which are home to its biggest Indian customer base.
Flipkart, which is owned by Chinese tech company Alibaba, said it has closed its remaining stores in India.