Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do. There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Now as I approach my 90th birthday ( 27 June 2023 ) , I invite you to visit my Digital Avatar ( www.hemenparekh.ai ) – and continue chatting with me , even when I am no more here physically

Monday, 31 December 2018

Mukesh has the last laugh !




A few days back , Commerce Ministry announced FDI norms / guidelines in relation to E Commerce


This was done, even as DRAFT of the new E Commerce Policy is yet to be released ( - a “ work in process “ for past 2 years )



Briefly ,  it reads :


·         E-Marketplace players cannot sell products of companies in which they hold a stake. Such an ownership or control over the inventory will render the business ( market-based model ), into an “ Inventory-based “ model


·         Inventory of a vendor will deemed to be controlled by an e-commerce marketplace entity if more than 25 % of purchases of such a vendor are from the “ marketplace entity “ or its group companies



·         E-commerce marketplaces to furnish certificate and report of statutory auditor annually to RBI confirming compliance


·         E-commerce marketplaces are allowed to support services to sellers, such as


#    WAREHOUSING


#    LOGISTICS


#    ORDER FULFILLMENT


#    CALL CENTRE


#   PAYMENT COLLECTION




·         E-Commerce companies with foreign funds have to compulsorily operate as a “ marketplace “, as FDI is allowed only in such models, and not in “ inventory-based “ ones


[  Under an “ Inventory-based “ model, companies can sell their “ own “ items , whereas in a “ marketplace “ model, they can only serve as the link between buyers and vendors  ]



·         E-commerce “ marketplace “ entity should not mandate any vendor to sell any product exclusively on its platform



=========================================================


QUESTION :


·         What is the E-Commerce “ model “ of  Reliance Retail [  RR  ]-

Is it a “ Marketplace “ model or an “ Inventory-based “ model ?




Ask Mukesh Ambani and very disarmingly , he will say :



“ Oh , ours is a “ Hybrid Model “ and therefore it is outside the purview of the guidelines / norms just announced



It makes us “ F-Commerce “ – short for FUTURE of COMMERCE 




F-Commerce for the following reasons :


[As envisaged in :





SALES :

All of your merchandize will be available for selection / ordering on our ONLINE web portal 

This online presence of your merchandize will expand / extend your " reach " to thousands of consumers in your neighbourhood

You will need to only focus on OFFLINE ( across-the-counter ) sales to consumers who walk into your store

For OFFLINE sales , we will install in your stores , all the necessary Computers / POS terminals / Routers / Internet Connections / Mobile Wallet Payment systems and an end-to-end , RETAIL MANAGEMENT software 

All of your OFFLINE sales data will get transferred to our Central Server




SUPPLY  :

We will deliver to your store , all merchandize on " Consignment " basis


This means , you do NOT need to pay us for what we deliver to you store !


Till sold , all goods in your store will be our " stock "


This way , you do NOT need any " Working Capital " as far as your stocks are concerned 


We will also tie-up with the manufacturers


You don't need to have any interaction / dealing with the manufacturers




INVENTORY  :


On a continuous basis , our web server will keep a track of each and every item of merchandize sold from your stores


Our Server will calculate , your " Stock Movement " 


Based on this data , our Server will compute / set for each item :


#   Minimum Stock Level


#   Alarm Stock Level


#   Stock Re-Order Level


#   Re-Order Quantity ( Minimum Batch Size ) 


Based on this logic , our Server will instruct the relevant " Merchandize Manufacturers " ( or their dealers / stockists ) , to deliver the stipulated " Re-Order Quantities " to your stores


A " Re-Order Instruction intimation " , will get delivered to your computer


Upon arrival , you will need to update the data


From time to time , our Software will also figure out your current stocks of " Extremely Slow Moving " and " Obsolete / Expired " items , and arrange for " Return Delivery " , which you will need to enter in your database




DELIVERY  :


Not only we will deliver the merchandize to your store , but we will also pick up " Ordered Items " ( for ONLINE orders only ) , from your store and deliver the same to your customers  !


Initially we will employ manual " Delivery Persons " for this but , before long , we will deploy a fleet of autonomous DRONES for this purpose 


This fleet will cover " Kirana Stores " and " Online Customers " , located in pre-designated areas , covering 4 sq km ( 2 km x 2 km )


We are in talk with www.What3Words.com , to enable precise delivery through your 10th floor window  !


These drones will get their " Delivery Instructions " directly from our Web Server , for all ONLINE orders


When these drones arrive at your Store to pick up the items ( to be delivered ) , they will transfer ( Blue Tooth / NFC ) and display on your Computer screen , following data :


#  Online Order Number / time / date


#  Items covered with description / value of each


#  Customer Name / Address 


#  Mode of Online Payment / Bank Details


#  Your online account CREDIT details , giving,


     ( Sales Value ) - ( Purchase Price )  


    " Purchase Price " of goods in your stock will be
     based on FIFO method





FINANCE  :


As explained earlier , you will have a bare minimum need for " Working Capital " , since all of your stock will be on " Consignment " basis


We will collect the " ONLINE  PAYMENTS " directly from the customers and " Credit " the same to your " online sales account " with us


Against same account , we will " Debit " the " purchase price " ( price at which you purchase the merchandize from Reliance ) of the goods sold


Our server will also take care of all GST payments and filing of GST returns


As far as OFFLINE sales is concerned , all the data captured through POS terminal will get transferred to our Central Server




MARKETING  :

Not only will we carry out all marketing for your ONLINE sales , we will help you with your OFFLINE marketing , through introduction of the following technology-enhanced features :


#   Arranging a better display of merchandize on your shelves / re-arranging of shelves


#  Introducing Augmented Reality ( AR ) for clothes / fashion goods in " Trial Rooms " for giving the customers , an experience of " touch - feel - looks "

#   Introducing Robots to answer customer inquiries

#   Eliminating " Check Out Counters " , based on " Payments through Bio-metric Recognition " of customers

#   Embedding RFID sensors in each item of merchandize and RFID readers embedded in Shopping Carts

#   Improving your window display thru rotation

#   Introducing music

#  Eventually replacing " Physical " merchandize with " Holographic Display " of merchandize on your store shelves !


===================================================



Apparently , Mukesh seems to have come up with his “ F-Commerce “ model , after reading the following :


[ source :




E- Commerce and Foreign Direct Investment " are the " Special Theory of ECONOMY " , whereas " Commerce and Investment " are the " General Theory of ECONOMY "



The best that the Committee can recommend is adoption of the following ,


Parekh's , " 3  Laws of E-Commerce Economy " 


- to be incorporated as 123rd Constitutional Amendment


( with apologies to Isaac Asimov's 3 Laws of Robotics ! ) :


LAW  #  1 :

Asimov :

   A robot may not injure a human being or, through inaction, allow a human being to come to harm.


Parekh :

Rules / Regulations of E-Commerce shall not come in the way of unfettered creation of SELF EMPLOYMENT
    
 Any existing Law / Rule / Regulation that hinders a person to become Self Employed, shall be treated as ultravires
  

Further , any Law / Regulation of " E-Commerce / FDI " which slows down Investment ( Foreign or Local / Official or through channeling of BLACK MONEY ), shall be treated as " bad in law " and struck down





LAW  # 2
   

Asimov :

   A robot must obey the orders given it by human beings, except where such orders would conflict with the First Law.



   Parekh :

   Laws / Regulations governing " E-Commerce / FDI " shall be subservient to Laws / Regulations governing " Commerce / Investment " .

       
   Whenever any Public Authority / Court finds conflict between the two ,  laws / regulations governing " Commerce/ Investments " , shall prevail under all circumstances , and in favor of the self employed



     
     LAW  #  3

     Asimov :   

   A robot must protect its own existence as long as such protection does not conflict with the First or Second Laws.


   Parekh :

   Laws / Regulations of " E-Commerce / FDI " which get over-ruled under LAW # 2 , shall immediately " Self Destruct " in favor of unobstructed progress of TECHNOLOGIAL ADVANCES



  


=======================================================

01    Jan  2019


     RSVP :  hcp@RecruitGuru.com

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