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May 12, 2026
Anushka Jha & Kausar Madhyia, Afaqs
12 May 2026
On May 10, Prime Minister Narendra Modi, in his address to the nation, made some appeals to the citizens of India. In addition to asking Indians to re-adopt Covid-like practices of working from home and refraining from travel abroad, the prime minister also appealed to the citizenry to stop buying gold for weddings for a year.
The appeals come in response to the global energy crisis and economic instability triggered by the US-Iran war and the consequent West Asia conflict, which makes import-dependent commodities like gold especially vulnerable.
The market reaction was almost immediate. Following the Prime Minister’s appeal, jewellery stocks saw sharp declines on the BSE. According to PTI, Senco Gold fell nearly 11%, Kalyan Jewellers dropped close to 10%, and Titan Company declined around 8%, while Tribhovandas Bhimji Zaveri slipped over 6%.
National interest and gold monetisation
Industry leaders have responded by balancing the Prime Minister’s vision with structural solutions.
“India’s economic strength must always come before individual preferences. Hon’ble Prime Minister’s appeal regarding responsible gold consumption reflects the larger national concern of rising imports and pressure on foreign exchange reserves,” says Rajesh Rokde, chairman of the All India Gem and Jewellery Domestic Council (GJC).
He suggests that a revitalised Gold Monetisation Scheme (GMS) could “mobilise idle household gold” and “convert dormant gold into productive national capital”.
“Nation First. Responsible Gold Ecosystem Next,” he adds.
Avinash Gupta, the vice chairman of GJC, emphasises the emotional and cultural connection of gold to Indian households.
“But today, the nation also faces the challenge of balancing gold demand with economic stability.” He believes the GMS can channel gold into the formal economy, “reducing imports, easing CAD pressure and strengthening India’s financial ecosystem.”
India’s cultural fabric and the market reality
According to a report by MoneyControl, India imports 90% of its gold needs, making the country as one of the largest gold importers globally.
Gold is an integral part of India’s cultural fabric. It is not only a fitting gift for various auspicious occasions but also constitutes one of the most expensive elements of the ‘great Indian weddings’. Additionally, there are specific religious days dedicated solely to the purchase of gold, such as Akshaya Tritiya and Dhanteras.
However, external pressures are already weighing on the market.
Devangshu Dutta, founder of Third Eyesight, a retail management consulting firm, observes: “Jewellery retailers are already suffering from higher raw material costs, and rising gold and silver prices have driven several customers to postpone or reduce their purchases, including on significant dates such as Akshaya Tritiya.”
He notes that while wedding demand may remain strong, discretionary purchases will face a setback. “Companies will need to lean into lighter, more contemporary designs and lower caratage to sustain year-round demand.”
The potential impact of the appeal
Despite rising gold prices, approximately 700 to 800 tonnes of gold are consumed every year by Indian households, weddings, festivals, investment purchases, and rural savings, as per the same Money Control report.
Given the popularity of PM Modi, industry veterans expect a tangible shift in consumer behaviour.
“There will certainly be an impact,” says Arun Iyer, founder and creative partner at Spring Marketing Capital and former chief creative officer at Lowe Lintas, who played a significant role in the creation of Tanishq and several of its iconic advertisements.
“Given that the Prime Minister obviously has a very, very deep influence on our society, I think there will be an impact. People will think twice before buying gold.”
He further notes that while critical purchases will continue, “this quarter is expected to pose some challenges for the jewellery brands”.
Adaptation and brand strategy
According to the India Brand Equity Foundation, India’s gems and jewellery market stood at Rs 7,31,255 crore in January 2025 and is projected to increase to Rs 11,18,390 crore by 2030.
To sustain this growth, players like Suvankar Sen, CEO and MD of Senco Gold Ltd, are focusing on recycling.
“Today, almost 50% of our overall business is driven through recycled gold. This not only helps consumers optimise the value of their existing gold holdings but also contributes towards reducing dependence on fresh gold imports,” he says.
From a brand perspective, Saurabh Parmar, fractional CMO, believes the strategy must shift.
“In a scenario when the head of state says something like this, the brand faces a credibility problem, not a sales problem. The play is to shift from category promotion to category trust, lean on heritage, on long-term value, and on gold’s role in Indian culture.” He advises brands not to appear opportunistic but to signal, ‘We have always been there.'”
Given the popularity of Prime Minister Modi in India, his influence is likely to affect the performance of leading jewellery brands in the next quarter. This may include major players such as Tanishq, Malabar Gold & Diamonds, and Kalyan Jewellers, among others.
(Published in Afaqs)
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December 3, 2025
Pooja Yadav, Exchange4Media
3 December 2025
Over the last few months, India’s e‑commerce and quick‑commerce ecosystem has undergone a wave of structural regulatory and tax reforms. Be it the Goods and Services Tax Council (GST Council) formally bringing “local delivery services” under the tax net with an 18% levy, or the newly implemented labour and social-security reforms expanding obligations for gig workers on aggregator platforms like Swiggy and Zomato, the cost and compliance landscape for delivery and fulfilment is shifting significantly.
The latest GST clarification, delivery fees, packaging charges, and logistics surcharges are now creating a ripple effect across pricing, platform margins, and seller compliance requirements.
The past few months have already shown concrete signals that platforms are revising their incentives, delivery promises, and fee structures. Following the GST clarification, major food‑delivery players have raised their platform fees, for instance, Zomato reportedly increased its per‑order fee from ₹10 to ₹12 (pre‑GST), while Swiggy also raised fees in select markets. Some quick‑commerce arms are also reworking free‑delivery thresholds or fee waiver conditions. Swiggy Instamart also recently updated its free‑delivery threshold to orders above ₹299, with handling and surge fees applying below that level, per reports.
Meanwhile, some platforms seem to be signalling a de‑emphasis on “ultra‑fast for every order” as universally viable; free or fast delivery now appears increasingly tied to higher order values or subscription/membership perks.
It looks like these pressures are forcing platforms to reconsider long-standing quick-commerce levers such as ultra-fast delivery, first-order free offers, zero delivery fees, and flash discounts — which have historically driven customer acquisition and retention.
While Zomato did not comment directly, it referred to the Code on Social Security, 2020 (CoSS), noting that the platform is prepared for gig-worker obligations and does not expect the rules to negatively impact long-term business sustainability.
According to Kapil Sharma of Amazon Ads, “The e‑commerce landscape will continue to evolve, but some fundamentals remain constant such as delivering value to consumers and providing advertisers with meaningful ways to engage. Our full-funnel ad solutions allow brands to focus on objectives such as new product launches, brand building, or promoting larger pack sizes, ensuring campaigns remain relevant and effective even as the ecosystem adapts to changing costs and regulations.”
e4m reached out to Swiggy, Meesho, Zepto and BigBasket for comments, but did not receive responses until the time of publishing.
Several experts told e4m that the economic model of quick commerce, built on heavily subsidised delivery and small-ticket frequent orders, is under pressure. Platforms will need to find sustainable levers to retain customers without eroding margins. The industry has started to see a strategic recalibration where speed is increasingly becoming a hygiene factor rather than a differentiator, free delivery is becoming conditional, and platforms are nudging consumers toward larger baskets, subscription models, curated bundles, and scheduled deliveries. Brands, in turn, are also shifting focus from mass discounting to premiumisation, value-led messaging, and precise cohort-based targeting.
Will Free Delivery Become Rare?
With the new social‑security obligations for gig workers under India’s labour reforms, and the added cost burden of delivery services now subject to GST, the economic logic underlying “free delivery” as a marketing lever is coming under stress. Chetan Asher, Founder and CEO of Tonic Worldwide, echoes this view, noting that quick-commerce platforms previously operated on thin contribution margins and heavily subsidised small-ticket, frequent orders. With rising delivery costs and mandatory social-security contributions, universal free delivery is becoming increasingly unsustainable.
Industry analysts point out that the new social-security mandates and GST on delivery fees have lifted per-order costs noticeably. Most quick-commerce platforms already operate at low single-digit contribution levels, making blanket “free delivery” hard to justify. It may continue, but only as a conditional incentive tied to higher basket values, subscription memberships, or flexible delivery slots, rather than as a universal subsidy.
Shradha Agarwal, Co- Founder & Global CEO, Grapes Worldwide, added from an advertising standpoint, “It’s already happened, brands like Zomato, Swiggy, Amazon and Flipkart, who know we are going to buy from them, have shifted from ‘buy now’ tactics to ‘stay with me’ strategies. Those days are gone when platforms were giving blanket discounts, now brands are the ones tightening their offers.” Citing an example she mentioned how offline pricing is ₹235, but online it is sold at ₹185, with online adding to top-line rather than bottom-line.
On promo hooks like ‘₹0 delivery’, ‘first-order free’ or ’10-minute delivery’, Agarwal said, “As labour codes, compliance costs, and social-security contributions kick in, platforms will have less room to burn cash on promos that don’t create sustainable value. Consumers care more about convenience than freebies.”
On ad spend shifts, she noted, “Offer-driven campaigns will weaken, while value-driven storytelling will rise. ATL and influencer campaigns will strengthen, and performance marketing will become more strategic. Retail media will become non-negotiable.”
From a brand perspective, Asher pointed out that quick-commerce spends are increasingly evaluated against contribution margin rather than sheer GMV growth. Discounts and zero-fee offers are losing bite as customer acquisition costs rise. First-party data, replenishment journeys, and sharper cohort-based offers are gaining importance, ensuring that incentives remain ROI-focussed rather than mass-oriented. Similarly, speed claims such as “0 delivery” or “10-minute delivery” are becoming less differentiating in top cities, where most players already deliver within 15–20 minutes. Consumers now respond better to reliable ETAs, fair fee structures, and transparent pricing than aggressive speed promises.
Adding her viewpoint, Pooja Dhamdhere, Commerce Lead at Starcom India, said, “Incentives like free delivery or first-order offers are likely to evolve rather than disappear, and platforms will explore strategies such as tiered benefits, curated bundles, or differentiated pricing for specific cohorts.”
According to serial entrepreneur Alok Chawla and Founder at Kiko Live, added that while platforms may continue absorbing delivery costs in the short term, the long-term economics will require charging for ultra-fast or low-value orders. “Once platforms pass the actual delivery costs to consumers, we expect order frequency and small-cart behaviour to change, with many users shifting to larger baskets or neighbourhood retailers offering free delivery,” he noted.
Alternative Consumer-Incentive Models
Devangshu Dutta, founder and chief executive of Third Eyesight, who is an expert in the consumer and modern retail sector, stated, “I think platforms will pass a significant portion of the new 18% GST burden on delivery to end-consumers, either through higher delivery charges or repackaged platform fees. Some of this cost may also be clawed back from restaurant partners and quick-commerce brands via revised commissions, slotting fees or mandatory participation in marketing programmes, especially in categories where the platform has stronger bargaining power. Overall, I expect higher minimum-order thresholds and a tighter margin environment for restaurants and small D2C brands that rely heavily on third-party platforms.”
Analysts highlight strategies such as minimum-order thresholds, where free or lower-fee delivery applies only above a certain cart value, nudging consumers to order larger baskets rather than frequent small-ticket items. Subscription and membership-based models are also gaining prominence, offering benefits like waived or discounted delivery, priority fulfilment, and access to exclusive promotions in exchange for a fixed fee.
Scheduled or batch delivery windows are being used to optimise logistics, reduce cost pressure on ultra-fast last-mile fulfilment, and improve operational efficiency. Meanwhile, curated bundles and value packs, including weekly or monthly combos, allow consumers to plan purchases while enhancing per-unit economics for platforms. These levers also enable brands to maintain margin integrity without over-reliance on short-term discounting.
From a marketing perspective, this shift is prompting agencies and creative-first firms to move toward value-led messaging, premiumisation, and cohort-based targeting. Dhamdhere explained, “Platforms are optimising assortments by surfacing premium SKUs, nudging higher average order values, and using search optimisation to strengthen profitability. Brands are now focusing on aspirational consumers with curated bundles, subscriptions, and value-led propositions, rather than mass discounting. Performance campaigns will continue, but clarity of value and sustainable margin-led offers are becoming key for acquisition and retention.”
2026: Will regulatory pressure force a recalibration?
As 2026 approaches, the combined impact of GST on delivery services and mandatory social-security contributions for gig workers is forcing a fundamental rethink of quick-commerce economics. With blanket discounts, zero delivery fees and ultra-fast delivery no longer viable as mass levers, platforms are shifting toward basket-building, subscriptions, curated bundles and conditional incentives. The growth thesis is evolving from “habit formation at any cost” to protecting contribution margins through reliable ETAs, transparent pricing and premium assortments rather than aggressive subsidies.
Brands are recalibrating alongside this shift. Premiumisation, value-led propositions and sharper cohort-based targeting are taking precedence over broad discounting, and campaigns are increasingly evaluated on ROI, repeat behaviour and lifetime value rather than raw GMV. Tiered memberships, scheduled deliveries and subscription-led conveniences are emerging as key retention tools, while short-form video, influencer ecosystems and retail media help articulate value in a tighter cost environment.
Chawla said platforms will have to move beyond “₹0 delivery”, “first order free” and “10-minute delivery” as core propositions because the delivery cost burn far exceeds margins on small-ticket orders. Many consumers currently place multiple micro-orders a day simply because delivery is free, but once fees come into play, behaviour will likely shift toward clubbing orders or reverting to neighbourhood retailers, who themselves are rapidly digitising through partners like Kiko Live.
In the next phase, he adds, free instant delivery will only be sustainable for larger baskets, whereas scheduled delivery may become the default for free delivery, with paid instant delivery as an optional upgrade. Subscriptions may drive loyalty, but only up to a point, since the heaviest users would consume more deliveries than the subscription fee can realistically subsidise, making it difficult for platforms to make the model profitable.
This points to a clear playbook for 2026. “Free delivery” and mass discounting are expected to fade, giving way to conditional, tier-based formats that reward higher basket values, subscriptions or specific cohorts. Brand platform partnerships will also move toward profitability rather than promotional burn, with campaigns designed to protect margins instead of fuelling discount-led spikes.
Taken together, the signs suggest that 2026 will not mark the end of convenience, but the end of convenience that is subsidised blindly. The real test now is who absorbs this new cost of convenience, platforms, brands, or consumers. And as that battle plays out, another tension is already emerging: whether small and regional advertisers can survive the rising cost of visibility in India’s digital economy.
(published in Exchange4Media)
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November 26, 2025
Aakriti Bansal, Medianama
November 26, 2025
MediaNama’s Take: The Central Consumer Protection Authority’s (CCPA) decision to publish 18 self-declarations confirms only a partial picture of its dark pattern(s) identifying exercise. The authority has stated that 26 platforms have filed their declarations, but it has made only 18 of them public. This gap means the public still cannot see what eight major platforms submitted or whether those filings contain any meaningful detail. Moreover, even among the published declarations, several are one-paragraph statements that offer almost no insight into the scope or accuracy of the companies’ internal audits.
LocalCircles’ new survey adds further complications, reporting that 21 of the 26 platforms that submitted declarations still display at least one dark pattern. This finding suggests that the CCPA’s reliance on voluntary self-assessment may not be enough to shift platform behaviour at scale. It also raises questions about what the unpublished declarations contain and whether the missing submissions are similarly sparse or incomplete.
Notably, the CCPA has not clarified how it plans to verify the accuracy of any of the declarations, whether published or unpublished. If filings remain unverified for months, compliance risks turning into a box-ticking exercise rather than a meaningful regulatory process. Therefore, the next phase matters far more than the publication of select declarations, because the current approach raises more questions than it answers.
What’s the News
The CCPA has made 18 dark pattern self-declarations public, despite stating that 26 platforms have filed their compliance letters. The publication follows an RTI filed by MediaNama that revealed which companies had submitted their declarations, and pointed out that none of the filings had been available to the public at the time.
These declarations stem from the Ministry’s June 5 advisory, which required e-commerce and quick commerce companies to conduct internal audits under the 2023 Guidelines for Prevention and Regulation of Dark Patterns and submit compliance letters within 90 days.
For context, Moneycontrol reported that Amazon has still not filed its declaration and has asked for additional time. A senior government official told the publication that the government “has done what it had to” and does not plan further discussions.
The official also said that any punitive action would depend on consumer complaints routed through channels such as the national consumer helpline. This indicates that the enforcement approach continues to be reactive rather than compliance-driven.
What Did The CCPA Ask Platforms To Do?
The June 5 advisory set out a simple compliance framework for digital platforms. It asked every e-commerce and quick commerce company to complete a self-audit of its website and mobile app within 90 days and check their interfaces for the 13 dark patterns listed in the 2023 guidelines. Platforms were required to file a self-declaration confirming compliance once this internal review was complete.
However, the advisory did not specify how the audit should be conducted. Companies were free to choose any methodology, and the CCPA did not prescribe a standard format, a uniform checklist, or a minimum evidence requirement. Also, the advisory did not require independent audits or third-party validation.
Furthermore, there was no explanation of how the CCPA planned to verify whether the declarations were accurate or complete. In effect, the responsibility for defining the scope, depth, and rigour of the audit rested entirely with each platform.
What the CCPA Has Done With the Declarations
As mentioned before, the CCPA has now published 18 self-declarations on its website. The release confirms that companies submitted their compliance letters, but it does not indicate whether the authority evaluated the accuracy or depth of the filings.
Several platforms submitted very short statements that simply assert compliance without describing any checks or findings. BigBasket, Zomato, Blinkit and Swiggy were among the companies that filed especially minimal disclosures. The CCPA has not explained why these filings were accepted or whether any follow-up questions were asked. Therefore, asking for and disclosing self-declarations shows some administrative progress, but it does not reflect any regulatory scrutiny.
This lack of verification aligns with concerns raised by Devangshu Dutta, Founder of business consulting firm Third Eyesight. He told MediaNama that self-declarations “do not change things much” when regulators do not audit submissions or impose consequences.
Further, Dutta remarked that most companies comply at the minimum level required if their claims are not examined and are not made public in full. According to him, revenue-driving design choices such as forced add-ons, confusing checkout flows or misleading scarcity claims will not be voluntarily removed sans oversight.
What Independent Evidence Shows
LocalCircles’ latest audit presents a sharply different picture from the companies’ filings. The organisation found that 21 of the 26 platforms that submitted “dark pattern free” declarations still use one or more manipulative design practices. The assessment relied on feedback from more than 250,000 consumers across 392 districts along with AI-assisted testing.
The most common violations include forced action, subscription traps, bait and switch, basket sneaking, interface interference and disguised advertisements. In practice, these dark patterns respectively mean that users are pushed into steps they did not choose, face hidden or hard-to-cancel subscriptions, see offers change during checkout, encounter fees added at the last moment, get nudged toward platform-favoured choices, and come across ads that appear as regular listings.
LocalCircles also identified drip pricing (gradually adding mandatory fees during the checkout process) on 11 of the 26 companies, including Flipkart, Myntra, Cleartrip, MakeMyTrip, BigBasket, Zomato and Blinkit, among others. The organisation said that many platforms appear to misunderstand what qualifies as drip pricing, which has led to incomplete corrections.
Trust Can Erode Due To Gap Between Declarations And User Experience
Sachin Taparia, Founder of LocalCircles, said that the problem begins with the absence of any verification. “Our understanding is that CCPA is wanting that companies submit a self-declaration at the earliest. However, there is no cross checking of claims that is being done by the CCPA, and as a result the companies are not being as thorough with their dark-pattern detection and resolution,” he said.
Taparia added that discrepancies between declarations and user experience could harm trust. “LocalCircles has found dark patterns on 21 of the 26 platforms submitting self-declarations. If this exercise is not done with high accuracy, both platforms doing so and CCPA could see consumer trust being impacted,” he said.
Importantly, Dutta echoed this concern, saying that the absence of penalties or reputation-related consequences allows companies to self-declare compliance while keeping revenue-generating patterns intact. He described the current process as “more an administrative formality [rather] than a behaviour-changing regulatory tool”.
Why This Matters
The gap between self-declarations and independent audits in the true sense of the word brings the real enforcement question into focus. What should the next phase of regulation look like?
In this context, Dutta said that regulators need to move beyond self-certifications and mandate detailed user experience (UX) audit reports that map every user journey, including pop-ups, onboarding, search, checkout, cancellations and returns.
He explained that regulators should reinforce this by demanding substantive evidence instead of brief compliance letters. This evidence can include screenshots and screen recordings of key flows, version histories that show how an interface changed over time, and product design documents or A/B testing results that reveal why specific nudges were introduced. To explain, A/B testing is essentially a method for comparing two versions of something to see which one performs better.
Furthermore, Dutta noted that platforms already collect extensive data on user complaints and drop-off points, which can help identify harmful or confusing design choices. He also said that independent third-party attestations, similar to security or accessibility audits, can provide a credible external check and increase the cost of non-compliance.
Multiple Annual Audits For Apps that Change Interface Frequently
Notably, Dutta stressed that most dark pattern categories appear across e-commerce, quick commerce and Direct-to-Consumer (D2C) websites, which means regulators can create a baseline audit standard that works across sectors instead of relying on platform-specific interpretations. He also suggested that audits should occur at least once a year, and companies that frequently modify their interfaces may need to report two or three times annually.
The larger concern now is whether the CCPA plans to move toward such a structured framework. Without independent verification and clear audit expectations, companies can continue declaring compliance even when manipulative designs remain embedded in their interfaces.
(Published in Medianama)
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September 3, 2025
Aakriti Bansal, Medianama
3 September 2025
The Goods and Services Tax (GST) overhaul simplifies India’s tax structure and lowers prices for many goods. However, for e-commerce sellers, the change arrives at the worst possible moment. Platforms and sellers must adjust billing systems, invoices, and inventory records just as the festive season begins.
The festive period drives the highest order volumes of the year, and even minor disruptions in invoicing or compliance ripple through the system. Refunds get delayed, seller–platform relations strain, consumers face frustration, and penalties under GST law escalate. Moreover, the episode shows the fragility of India’s e-commerce compliance infrastructure.
Larger sellers can rely on manpower and technology, but smaller businesses remain disproportionately exposed. Platforms, meanwhile, cannot act as neutral intermediaries when their invoicing systems directly control seller compliance. The question now is whether the government, platforms, and sellers can move fast enough to make structural reforms without turning them into seasonal flashpoints.
What’s the News?
The GST Council, chaired by Finance Minister Nirmala Sitharaman, is meeting today and tomorrow (September 3–4), according to a report by Hindustan Times, to decide on a major overhaul of India’s tax system. The timing has already unsettled e-commerce. Platforms like Amazon, Flipkart, and Meesho are holding back on announcing festive sale dates, while sellers report uncertainty about how to handle inventory already billed at old rates.
Shoppers are delaying big-ticket purchases such as smartphones, televisions, and appliances, creating a visible slowdown in demand. Retailers are carrying higher stock levels, waiting to recalibrate pricing once the Council clarifies the new slabs. The pause comes just before the festive sales period, which typically contributes about a quarter of annual revenues for e-commerce platforms.
What the GST Reforms Are
The government has proposed collapsing the four-tier GST structure of 5%, 12%, 18%, and 28% into two slabs of 5% and 18%. A new 40% tier would apply to luxury and sin goods, replacing the existing compensation-cess mechanism.
If the Council approves, several categories will see rate changes. White goods such as washing machines, air-conditioners, smartphones, refrigerators, and televisions would move from 28% to 18%. Small petrol cars and motorcycles would also shift from 28% to 18%. Essentials including ghee, nuts, namkeen, packaged drinking water, and medical devices would drop from 12% to 5%. Everyday consumer products like toothpaste, shampoo, soap, and ready-to-eat foods would also move into the 5% bracket.
The 40% tier would target high-end cars, premium electric vehicles, tobacco, and pan masala. States have pushed back, warning of revenue losses, and discussions are underway on whether higher levies on luxury items or cess surpluses can offset the shortfall.
Implementation Challenges
Satish Meena of Datum Intelligence, a market research firm, flagged the absence of a transition window as “very tricky.” “Everyone wants to make the change because this is the peak sale time,” Meena explained. “But the challenge is how it will be implemented for goods already in warehouses. Once inventory has moved from the company to the warehouse under the old GST, how will you pass on the benefit to the customer?”
Devangshu Dutta, chief executive of Third Eyesight, a retail consulting firm, pointed to similar risks. “Sellers will need to rapidly adjust pricing strategies and inventory details, keeping in mind that the festive season is upon us,” Dutta explained. “One would hope that the changeover of rates doesn’t create supply unpredictability in this critical season.”
Abhishek A. Rastogi, founder of Rastogi Chambers, a law firm specialising in indirect tax and regulatory matters, warned about compliance fallout.“From a compliance perspective, the biggest challenge will be ensuring real-time alignment between product listings, tax rates, and invoices generated. Even a minor mismatch in billing, particularly during the high-volume festive season, could result in serious exposure,” Rastogi said.
Impact on Smaller Sellers
Experts agreed that smaller sellers carry the heaviest burden. “Larger sellers with manpower and technology will cope faster. Smaller sellers will face particular challenges,” Meena noted.
Dutta explained why smaller businesses feel the squeeze. “Businesses of all sizes face the burden of compliance and accurate reporting, but smaller businesses feel the impact disproportionately as their management resources are far more limited. Often it is the owner-manager, the most critical human resource in a small business, whose time gets sucked into ensuring the changes go through smoothly,” he said.
Moreover, Rastogi advised small sellers to act defensively. “Smaller sellers must ensure they maintain proper records of their communications with platforms, raise tickets on billing mismatches, and document tax advice received. Such proactive record-keeping will protect them if litigation arises later. They should also consider contractual safeguards when signing with platforms,” he said.
Platforms Under Pressure
Platforms also operate under strain. Meena pointed out that festive sales remain unannounced. “Typically, the sales should be in the week of October 13–14, or the following week. That has not been announced till now because of this GST issue,” he said.
Dutta argued that platforms must step in to steady sellers. “Sales, inventory, and return reconciliation is an ongoing issue and potential point of dissatisfaction among sellers. To avoid adding to this, e-commerce platforms need to provide enhanced seller support to smooth out the turbulence during the GST changeover,” he said.
Rastogi underlined that platforms share liability. “Legally, the burden to discharge GST liability lies on the seller. However, given that invoicing systems are often managed by e-commerce platforms, there is a shared responsibility to ensure the correct GST rate is applied. Any platform-level error that causes sellers to become non-compliant could become a contentious issue,” he explained.
He also laid out remedies. “Sellers impacted due to platform-level glitches can seek remedies under contract law and indemnity clauses in their agreements with the platform. They may also explore legal recourse if non-compliance is triggered without their fault. Ultimately, disputes of this nature will test how liability is apportioned between sellers and platforms,” Rastogi mentioned.
Consumer and Market Effects
The uncertainty already shapes consumer behaviour. “There is already a decline in demand over the last two weeks as customers are delaying purchases, waiting for festive discounts,” Meena observed. “If sales are pushed too close to Diwali, customers may move to offline stores where delivery is immediate and pricing on appliances can match e-commerce.”
Notably, Dutta pointed out that offline businesses could benefit. “Small offline businesses that don’t have GST numbers and don’t need to compile GST returns may be able to quickly benefit from lower input costs and may be able to become more price competitive,” he said.
Need for Government Clarity
Both Dutta and Rastogi called for immediate guidance.
Dutta warned that reforms must not create “supply unpredictability in this critical season.”
Rastogi pressed for intervention. “There is a strong case for the government to issue clarificatory circulars or transitional relief, particularly given the festive season volumes. Without such guidance, both sellers and platforms face a high risk of disputes, and the compliance ecosystem may be overburdened,” he noted.
Why It Matters
The GST reforms land as festive season spending sets the direction for the retail year. E-commerce platforms draw about a quarter of their annual revenues during this period, and sellers use these weeks to recover margins. Datum Intelligence estimates that online shoppers will spend around Rs. 1,20,000 crore in 2025, up 27% from 2024, with quick commerce taking 12% of that share. At this scale, even small invoicing or compliance errors can lock up billions of rupees in disputed sales.
The reforms already shape consumer behaviour. Shoppers hold back purchases while they wait for clarity on tax rates, and platforms face pressure to adjust quickly. If festive sales move closer to Diwali, buyers may switch to offline stores that match appliance prices and provide immediate delivery.
The rollout will show whether platforms and sellers manage a nationwide tax change in the middle of their busiest season or allow it to disrupt India’s largest online retail channel.
(Published in Medianama)
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March 5, 2025
Nisha Qureshi, Afaqs
5 March 2025
Bournvita, a chocolate-flavoured malt drink produced by Cadbury under Mondelez, is a household name in India. Marketed as a health drink that supports children’s growth and development, it holds a 15-16% share in the Indian health food drink sector, second only to Horlicks, which dominates with nearly 50%.
Its advertising has traditionally centred on themes of health, confidence, and mental strength, with campaigns such as Tayyari Jeet Ki resonating strongly with consumers.
The Food Pharmer controversy
Despite its strong market presence, Bournvita has faced criticism over its high sugar content and other ingredients, sparking public debate and legal scrutiny. The controversy escalated last year when health influencer Revant Himatsingka, known as Food Pharmer, called out Bournvita for its excessive sugar levels.
Himatsingka’s video criticised Bournvita for its high sugar content and potentially harmful additives, such as caramel colouring agents. His claims triggered widespread consumer backlash and prompted Mondelez India to issue a legal notice, dismissing his allegations as “unscientific” and “distorted”.
However, the legal action only intensified public scrutiny. In response to mounting pressure, Bournvita reduced its added sugar content by 14.4%, from 37.4 grams to 32.2 grams per 100 grams of powder.
Can influencers salvage Bournvita’s reputation?
More than a year after the controversy, Bournvita has launched a large-scale influencer campaign to highlight its lower sugar content and nutritional benefits. The campaign features influencers visiting Bournvita factories to vouch for its authenticity and health benefits.
While the concept of factory tours is not new—brands such as Parle and Havmor use it as an extensive strategy to build consumer trust even in the absence of any controversy.
The concept has since been adapted by several brands. ID Fresh, known for its packaged idli and dosa batter, faced allegations of contamination with animal bones.
In response, it launched TransparenSee, a trust-building initiative that allowed consumers to take virtual tours of its production facility via live streaming, offering an unfiltered view of its operations.
However, marketing experts argue that Bournvita’s approach may not be enough to restore its credibility, as it relies heavily on influencer testimonials rather than direct consumer engagement. Crisis communication, they caution, must be handled with transparency and genuine action.
Bournvita’s strategy bears similarities to Shein’s controversial influencer-led factory tour campaign, which backfired. In June 2023, the fast-fashion retailer invited US influencers on a paid trip to its ‘Innovation Factory’ in Guangzhou, China, to counter allegations of labour exploitation.
Instead of improving Shein’s reputation, the trip sparked further backlash, with critics dismissing it as a PR stunt designed to manipulate public perception.
Mondelez defends the campaign
Speaking about the campaign, a Bournvita spokesperson says, “At Mondelez, our unwavering commitment to quality, transparency, and consumer trust defines everything we do. This campaign is a testament to our ongoing efforts to engage meaningfully with consumers.”
He further emphasises that Mondelez aims to go beyond influencer marketing by engaging directly with key stakeholders such as mothers and nutritionists, offering deeper insights into the product’s quality and nutritional benefits.
The need for authenticity over promotion
Krishnarao Buddha, a former senior category head of marketing at Parle Products, remains sceptical of Bournvita’s approach, arguing that credibility issues cannot be resolved through influencer endorsements alone.
“Instead of relying on paid influencers, brands should adopt a transparent and action-driven approach. In today’s digital age, where public scrutiny is at an all-time high, authenticity is the key to earning and retaining consumer trust,” he explains.
Devangshu Dutta, CEO, Third Eyesight, echoes similar concerns, stressing that once trust is broken, it takes time to rebuild.
“A single influencer campaign cannot erase past controversies. Brands need to engage in consistent and transparent communication about real improvements. Bournvita highlights its nutritional benefits, but consumers need more than promotional content—they need tangible proof of change, such as independent testing and direct consumer engagement,” he asserts.
Sandeep Goyal, chairperson and MD of Rediffusion, critiques Bournvita’s approach as an “MBA (Marketer’s Belly Ache) strategy” that prioritises corporate messaging over authenticity. “In today’s digital landscape, consumers are highly aware of paid promotions, making traditional marketing tactics less effective. Instead of attempting to control the narrative through influencers, brands should focus on rebuilding credibility through transparency and honest communication,” he advises.
Lessons from Cadbury’s past crisis management
This is not the first time Mondelez has had to navigate a brand crisis. In October 2003, just before Diwali, Cadbury Dairy Milk faced a major scandal when customers in Mumbai discovered worms in chocolates. The Maharashtra FDA seized stocks from its Pune plant, leading to widespread concern and a 30% drop in sales.
To regain trust, Cadbury launched Project Vishwas, an initiative to educate 190,000 retailers and reassure consumers. It invested Rs 15 crore in improved packaging without raising prices and enlisted Amitabh Bachchan as a brand ambassador. The campaign successfully restored consumer confidence.
Will Bournvita’s efforts be enough?
While Bournvita has taken steps to address consumer concerns, relying on influencer marketing alone may not be sufficient to rebuild its credibility. As past examples show, true reputation recovery requires more than just strategic campaigns—it demands tangible action, consistent transparency, and genuine consumer engagement.
(Published on Afaqs)
