Smartphone, clothing brands go offline as e-commerce discounts dry up

Brands are looking to adopt omnichannel approaches, reports Tech in Asia

The move to demonetise high-value currency notes in November 2016 led to a slowdown in the online e-commerce sector, where over 50 per cent of orders are driven by cash on delivery.

With venture capital becoming scarcer, it has become more difficult to sustain promotions and discounts with investors’ money.

The government’s guidelines for foreign direct investment in e-commerce in March 2016 also curbed marketplace discounting and set limits for sellers.

In order to adapt to this new market reality, brands are looking to adopt omnichannel approaches. Here’s how this is playing out across some different markets.

Smartphones

Online exclusive smartphone brands such as Xiaomi,