US lifestyle and footwear brand Skechers has filed cases against ecommerce marketplace Flipkart and four sellers on its platform for allegedly selling its counterfeit products, an issue that has grown exponentially after the rise of online marketplaces in India.
Skechers, with the help of court-appointed local commissioners, raided seven warehouses in Delhi and Ahmedabad to recover fake merchandise from sellers Retail Net, Tech Connect, Unichem Logistics and Marco Wagon, the company said in its petition submitted to the Delhi High Court. It has so far found more than 15,000 pairs of fake shoes that were to be sold as Skechers. It has yet to raid more warehouses of these vendors to tally the final count, the American retailer said in its petition.
A company spokesperson told ET, “Flipkart is an online marketplace that helps sellers connect with customers across the country. We only act as an intermediary. We conduct our business with the highest standards of integrity and are fully compliant with all rules of the land. We cannot comment on the current issue as it is sub judice.”
The country’s largest ecommerce player through its ‘Flipkart Assured’ model keeps check on the genuineness of products sold on its platform by more than a lakh sellers and has blacklisted several sellers dealing in counterfeit merchandise. But it seems the problem persists.
Ruchi Sally, Director at retail consulting firm Elargir Solutions said, “All ecommerce companies, including Flipkart, need to have a tighter entry and control mechanism for their sellers that will help curb or minimise such issues similar to how it is dealt in developed countries.”
Skechers, the second largest athletic footwear brand in the US, targets to become a Rs 1,500-crore brand in India by 2020, helped by rapid store expansion, new category launches and self manufacturing in the country.