Hyderabad: Slamming outrageous discounts and cashback offers from e-commerce players as “subsidies”, Chairman of Manipal Global Education T V Mohandas Pai has pronounced a attention might see a shakeout in a subsequent dual years, or “even earlier”.
He faulted a business indication adopted by e-tailers, that he pronounced promotes expansion but building patron loyalty. Biggies such as Flipkart and Snapdeal are only perplexing “to grow quick by giving subsidies, that is wrong since there is no patron loyalty”.
“I think, a really good shakeout… might come, maybe, in a subsequent one or dual years. Some of a weaker players will fall.” On a start-up expansion scenario, Pai said: “Many of them will die since they are not competitive. They are being kept alive by dollars of money.”
According to him, a nation now has 18,000 start-ups formulating a value of USD 75 billion, with 3 lakh people being employed in a space.
He projected 1,00,000 start-ups with USD 500 billion of value and generating 3.5 million jobs in 10 years. “Those who duplicate successful start-ups will die and many others would tumble by a wayside. Top 10-20 per cent (of a start-ups) will arise and turn vital companies”, he predicted.
On a Indian IT sector, Pai pronounced a plea is to change a business indication to boost a digital economy and a market.
“They (Indian IT companies) have to go to a new digital era. Some of them are struggling. That’s the
challenge. They should be doing some-more digital,” he suggested. Pai played down suggestions from some buliding that India’s IT employees are “overworked and exploited”. “When we have 18-20 per cent rubbing (rate), where is a exploitation? It (suggestion) is ridiculous”, he added.