Manufacturers step in between discount fight of e-tailers & retailers

Mar 25 2014, 10:29 IST
Comments 0
The discounting policy of e-tailers harms the brand as consumers lose trust. The discounting policy of e-tailers harms the brand as consumers lose trust.
SummaryWith fight between e-tailers and retailers intensifying over steep discounts being offered by former...

Mall of India, which is keenly observing the fast growing e-commerce space and has already factored in the trend.

“We will be more careful when it comes to online shopping. Our current agreement with international brands already reflects this clearly wherein certain references are made on how brands treat their online strategy,” added Pushpa Bector, senior vice president and head (leasing and mall management), DLF Mall of India.

Some like Canon India have not authorised any online agency to retail its cameras but says it can't do much if e-tailers buy its products from its authorised dealers and then sells it cheaper to consumers.

“Our dealers may shift to stocking other products if their profits plummet like this due to predatory pricing by companies like Flipkart and Snapdeal. The dealers need their 10-15% margins. We can't do anything more than demarcating the authorised dealers from the others because the e-tailers can buy our products from any dealer or distributor and sell them cheap,” added Alok Bharadwaj, executive vice-president at Canon India.

Single Page Format
Ads by Google

More from Companies

Reader´s Comments
| Post a Comment
Please Wait while comments are loading...