Consumer goods companies such as Samsung, Sony and LG are even considering legal action claiming damages to their brand. Reports say some of them have even suspended new sales with the e-retailer. Senior Executives of companies went to the extent of mentioning that buying from Flipkart was no different from purchasing from the grey market as goods were sold through unauthorized channels. This could affect the warranty on these products.[source]
Most consumer goods companies have called this a gimmick to increase traffic on to the website. LG has reportedly stopped sales on Flipkart maintaining that Flipkart was never their authorized sales partners and that they do not deal with them directly.
Brands Under Pressure?
The reaction from brands is obviously driven by backclash from offline retailers who have lost significant sales to online players during the festive season. This isn’t the first time offline retailers have revolted against the e-tailers.
Are consumers at a loss here? What if brands decide not to respect the warranty? We certainly hope Flipkart has answers to all these.
Importantly, where are the industry bodies? [hint : they are organizing another conference.]. Isn’t this an industry wide issue?
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