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We’re playing by the rules: Club Factory

Owing to the media reports on Chinese e-commerce companies shipping cheap products to customers in India directly from China, Club Factory’s founder, Vincent Lou said that the company's business operations are in alignment with Indian laws. The Indian government does not allow foreign e-commerce companies to sell directly to consumers.

, ET Bureau|
Nov 27, 2019, 12.08 PM IST
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New Delhi: Club Factory, a Chinese e-commerce player in India, said it is operating on a marketplace model in the country and is aligned with Indian laws. The government is looking to amend rules to stop citizens from receiving duty-free “gifts and samples” valued at under Rs 5,000 from overseas companies.

This follows media reports that some Chinese e-commerce players were shipping cheap products to customers in India directly from China, labelling them as gifts to evade customs duty.

Club Factory’s founder, Vincent Lou, told ET that all orders are being fulfilled only by local sellers, of which 70% are SMEs. India does not allow foreign e-commerce companies to sell directly to consumers, but allows them to invest fully in platforms where independent sellers can list and sell their own products.

Lou said Club Factory is ramping up investments in India to create a strong e-commerce ecosystem for itself.

“We are looking to make significant investments in warehousing, delivery, technology and marketing to strengthen our presence further by scaling up operations in an endeavour to further connect with masses across the country,” Lou wrote in an email response to a query from ET, adding that the company fulfils all orders in India through local sellers.

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