E-commerce players push local brands, but the Chinese grip on electronics stays firm

Indian e-commerce marketplaces may accelerate their efforts to localise private label products and run campaigns to promote locally manufactured goods on their platforms as geopolitical tensions between India and China have flared up to their worst levels in over four decades.

However, it’s unlikely that these marketplaces will take a stance on initiatives such as the #BoycottChina movement on social media as China remains the biggest sourcing hub for fast-moving categories such as smartphones and electronics, multiple industry executives told ET.

“We’ve been trying to localise sourcing for private labels for a long time, but you could say efforts have been accelerated because of Covid-19 and now this (Indo-China border issues),” a senior executive said on the condition of anonymity.

Both Amazon and Flipkart have been running campaigns to promote local brands and small manufacturers over the past couple of weeks just as #BoycottChina began picking up steam.

The two largest ecommerce players did not respond to queries until the time of going to press.

Snapdeal said it has been focused on providing Indian MSMEs a platform to grow their businesses, without commenting on the Indo-China issue. “Snapdeal has always been focused on creating opportunities and access for India’s small and medium businesses – sellers and manufacturers,” a company spokesperson said.

Executives at all the leading online marketplaces said they haven’t yet seen any dip in sales of made-in-China products or products from Chinese brands.

ET had reported on June 3 that sales of Chinese goods online remain strong as the tight-fisted consumers do not have too many options currently.

“We can only encourage consumers to buy local, in line with what the PM has mentioned, but we can’t do anything else,” said an executive who pleaded anonymity given the sensitivity of the issue. “By law, marketplaces are required to stay neutral, and something as drastic as banning products made in one place can land us into trouble with sellers. Unless the Indian government bans the import and sale of Chinese products, which is extremely farfetched, we can’t do anything,” the person said.