On the 27th of May, a Civil Court in Mumbai filed a complaint against Flipkart, selling GOQII’s wearable products at large discounts. Ratan Tata issued a legal notice to Flipkart e-commerce because they were facing huge losses on excess discounts offered by Flipkart on GOQii’s Products.
On 18th May GOQii filed a legal case i.e., Flipkart selling products at a huge discount of about 70% to 80% on Online. We already well known Flipkart owned by Walmart, they are also violating Foreign investment policy in e-commerce. Because of these discounts offered, the existing orders were canceled and partners were unhappy with lower prices because of profits are lower. Croma and other distributors are feeling very unhappy with GOQii at present and rejecting further orders. Flipkart/Walmart saying that these allegations are baseless and sales of products are decided by the nature of products not because of pricing policy.
Vishal Gondal (founder and CEO of GOQii) saying, “We urge Flipkart/Walmart to not use its position of dominance to compromise SMEs/startups. Such practices are not in the best interest of the ecosystem. Deep discounting continues to hurt GOQii business.” regarding the issue we’re facing present.