Buyers Alert: Videocon, LG don’t want you to buy their products online
Advertisement
This may not be the best thing to read in the morning but it surely is important for you! Some consumer durable majors will not offer warranty on their products that are sold online in their bid to boost the offline sale of their products.
Electronics giants such asVideocon and LG India sell their televisions, refrigerators, microwave ovens, washing machines and airconditioners online and have said that consumers who buy their products online will have to pay for after sale services even during the warranty period.
According to an ET report, the offline distributers’ network has demanded a complete shutdown of online sales in the current fiscal year. Companies are bound to oblige as their physical dealers largely generate sale for them. At present, online sales contribute less than 5% of their sales. However, smartphones are an exception as they generate 20% of the overall sales for these companies.
Nevertheless, taking note of the growing importance ofeCommerce sector in the country, White goods maker LG India is planning to exclusively tie-up with ecommerce companies for the sale of their smartphone portfolio.
The report has also suggested that LG India has already issued an advisory to the consumers that the company will not offer any guarantee on the originality, suitability, update technology and after-sale services for the products, if they have been bought online except their own e-store.
On being questioned about the impact such a move would have on the sales, Nildari Dutta , corporate marketing head for LG India said that Indian consumers still believed in the touch and feel concept as consumer durable products are big purchases.
"The industry has been trying to come to terms with e-commerce by offering exclusive models, but still some sites like Snapdeal are trying to disrupt the market dynamics by undercutting prices and not following business terms," said Videocon chief operating officer CM Singh in the report. Other consumer goods majors such asDaikin India , Haier too have asked consumers to opt for offline sale of their products.
Advertisement
Electronics giants such as
According to an ET report, the offline distributers’ network has demanded a complete shutdown of online sales in the current fiscal year. Companies are bound to oblige as their physical dealers largely generate sale for them. At present, online sales contribute less than 5% of their sales. However, smartphones are an exception as they generate 20% of the overall sales for these companies.
Nevertheless, taking note of the growing importance of
The report has also suggested that LG India has already issued an advisory to the consumers that the company will not offer any guarantee on the originality, suitability, update technology and after-sale services for the products, if they have been bought online except their own e-store.
Advertisement
"The industry has been trying to come to terms with e-commerce by offering exclusive models, but still some sites like Snapdeal are trying to disrupt the market dynamics by undercutting prices and not following business terms," said Videocon chief operating officer CM Singh in the report. Other consumer goods majors such as
Advertisement
- I spent $2,000 for 7 nights in a 179-square-foot room on one of the world's largest cruise ships. Take a look inside my cabin.
- One of the world's only 5-star airlines seems to be considering asking business-class passengers to bring their own cutlery
- Vodafone Idea FPO allotment – How to check allotment, GMP and more
- RCRS Innovations files draft papers with NSE Emerge to raise funds via IPO
- India leads in GenAI adoption, investment trends likely to rise in coming years: Report
- Reliance Jio emerges as World's largest mobile operator in data traffic, surpassing China mobile
- Satellite monitoring shows large expansion in 27% identified glacial lakes in Himalayas: ISRO
- Vodafone Idea shares jump nearly 8%