‘Recent changes in e-com norms to have marginal impact on hiring’

Source: The Hitavada      Date: 09 Jan 2019 09:05:51


Business Bureau,

THE recently announced changes in norms for e-commerce companies with foreign investment may have sent the players into a tizzy, but recruitment firms expect only marginal impact on hiring in the sector in the near future.
According to GlobalHunt Managing Director Sunil Goel, there could be a “marginal 5-10 per cent” impact in the near future, but hiring is expected to continue. “The impact of changes in the policy would not be that large in the sector. Supply chain and customer service will remain crucial functions wherein hiring shall continue to happen to meet the consistently growing demand of the consumers, he told PTI.

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.

Another provision states that the inventory of a vendor will be seen as controlled by a marketplace, if over 25 per cent of the vendor’s purchases are from the marketplace entity, including the latter’s wholesale unit. These norms -- which are effective February 1 -- would hit Amazon and Walmart-backed Flipkart the hardest. These two e-commerce platforms are also the largest in the country.

“We believe that the policy, while being detrimental to the current business models of the existing players, will not adversely impact jobs in the sector. The large players have committed significant investments into the country and are looking at India as a growth market,” said Paul Dupuis, Managing Director and chief executive officer of Randstad India. He added that there might be a slowdown in growth but not a reduction in headcount should the policy go into force as-is.

“Should the large e-commerce players put expansion plans on hold we believe that the opportunity loss for the number of new supply chain-related roles might be to the tune of 50,000 ,” he said.