Tussle between electronic brands and e-commerce does not seem to end any time soon. Companies such as Sony, Samsung and Canon have reportedly imposed a ban on brick-and-mortar stores from selling their devices online.
According to an Economic Times report, brands have threatened the stores of blocking supplies or imposing financial penalty. The ban is aimed at ending the trend of offering 'predatory' discounts online. It's notable Lenovo and Canon have also banned stores from selling devices online directly or through any e-commerce store.
"We are trying to weed out unhygienic practices to create a healthy environment between online and offline markets," said Amar Babu, managing director at Lenovo India.
Interestingly, the report suggests brands such as Sony and Samsung have entered into an “unwritten agreement” with some e-commerce sites over not selling their products below the dealer price or manufacturer-recommended price.
The latest development comes days after brands issued advisory to customers asking them not to purchase their products through e-commerce websites. One of the reasons behind brands' stand is the huge financial hit due to growth of e-commerce sites such as Flipkart and Snapdeal. Read our detailed analysis on the issue : E-Commerce vs. Brands: A serious conflict?
Do you support brands' trade advisory against selling products online? Should e-commerce sites and brands come to an agreement? Let us know your views in the comments section b below:
Source: Economic Times