E-com platforms in border regions stare at 12% revenue dip amid India-Pak strain
E-commerce firms are on high alert as Punjab's textile, sports industries face impact from Indo-Pak tensions. Punjab is one of India's most prominent textile hubs, with Ludhiana housing over 100 factories specializing in knitting, spinning, and garments.
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The uncertainty surrounding the India-Pakistan border tension has prompted e-commerce platforms, such as Amazon, Flipkart, Meesho, and others, to reassess their plans in border states like Punjab, Rajasthan, and Jammu and Kashmir, which are on high alert. According to industry experts, border disruptions could lead to a potential revenue losses for these platforms, ranging from 5% to 12%.
Sources informed Storyboard18 that delivery services in these regions have been delayed, with courier services being significantly impacted. Queries sent to Flipkart and Meesho did not elicit a response.
Read more: India-Pak border tensions threaten H1 OOH adex; key inventories in high-alert zones underutilised
"Due to the blackout in certain cities and a marginal decline in orders, the working hours have been reduced, resulting in delayed deliveries," an expert shared with Storyboard18.
Although it is too early to predict the long-term trend, disruptions are likely if the border tension persists for over 10 days.
Punjab is one of India's most prominent textile hubs, with Ludhiana housing over 100 factories specializing in knitting, spinning, and garments. On the other hand, Jalandhar is popular for the manufacturing of sports equipment.
"Many workers in the textile industry hail from Bihar, and if the situation worsens, they may be tempted to return home, states for safety reasons, impacting businesses and potentially leading to inventory shortages," an expert said on condition of anonymity.
E-commerce firms operating in border cities like Amritsar, Chandigarh, and Ludhiana are expected to face significant disruption, with potential revenue losses ranging from 5% to 12%, said an industry source.
Meanwhile, quick commerce platforms seem to be operating unaffected despite the cross-border tensions.
Panic buying has started in Punjab and Haryana on the 4th day of border tension. "Due to safety concerns, people are hesitant to move out, resulting in a significant surge in demand for online groceries."
Notably, Union Food and Consumer Affairs Minister Pralhad Joshi urged citizens not to hoard essential items as India has "more than enough stock of everything required across the country", he said.
"Be aware of false messages. Do not believe false propaganda messages about food stocks in the country. We have stocks of food items more than our requirements.
Traders, wholesalers, retailers, and business establishments of essential commodities have been directed to cooperate with law enforcement agencies.
Any person who hoards or hoards food for any purpose or malicious intent will be subject to the Essential Commodities Act," Joshi said on the X platform.
