Electronic brands ban online stores that offer low prices

Leading electronic device vendors such as Sony, Samsung, Panasonic and other top brands are out to crack down on the online stores that are selling their products at low prices.

The companies have threatened to cut off the supplies and penalize the e-stores / e-commerce portals heavily. These companies along with Lenovo and Canon have issued trade advisories banning stores from selling any of their items online directly or through any e-commerce website.

Popular e-commerce websites like Amazon, Flipkart and Snapdeal offer huge discounts on electronic items which widens the gap between the offline price and online price. This increases the troubles of the electronic goods makers of India.

E-commerce offers

The major electronic companies claim that some distributers and traders sell products online at a lower price by offering discounts through schemes or coupons, whereas some distributers sell the items at manufacturer recommended price.

Lenovo India has asked the retailers to abide by the trade agreement which maps out a certain geographical territory where the retailer can sell. To minimize the impact on offline retailers Lenovo has joined forces with popular online marketplaces.

Amar Babu, managing director at Lenovo India, said: “We are trying to weed out unhygienic practices to create a healthy environment between online and offline markets.”

Industry executives from Sony and Samsung also said that their companies have also made an agreement with some online stores to sell their electronic items with manufacturer recommended price.

According to executive vice-president of Canon India Alok Bhardwaj, Canon has decided not to offer any sales incentives to offline distributors who sell online.

editor@gizmolead.com

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