Samsung Electronics has decided to take the conventional retail route while rest of the world is moving online. In a battle of offline v/s online, the offline handset retailers have been suffering because of their online counterparts since they offer heavy discounts online on the purchased products.
According to TOI report, Samsung has given in to mounting pressure from thousands of brick-and-mortar retailers over predatory online pricing and has decided to extend exclusivity on selling rights of 48 models, including its much-awaited Galaxy Alpha and Note 4, to offline retailers.
“We have taken action against many rogue distributors, who were dumping their stocks online and beating down the price of our handsets. We are working hard to bring back price hygiene in the market. Our revenues from online sales have come down from 30% to single digit. We also have plans to stop billing WS Retail, the largest reseller on Flipkart.” a Samsung spokesperson said.
Samsung will provide online retailers some guidelines to maintain the price sanctity of Samsung handsets and give them exclusive rights to sell one or two models. Earlier this month, It had made partnership with Flipkart to launch its Galaxy S5 Mini.
Yesterday, IT and telecom product traders’ association ADCTA (All Delhi Computer Traders Association) advised its dealers/distributors/suppliers to stop supplying goods to online companies across India if they sell any product below the price at which they have originally purchased it.
Direct selling firms like Amway, Tupperware and Oriflame have also issued a notice to the e-commerce sites to stop selling their products as there are no sales through traditional retail channels.
The other players in this space like Xiaomi and Motorola are busy selling millions of handsets online. Two months back, Chinese smartphone maker Xiaomi had announced its entry into India through an exclusive partnership with Flipkart. Now, its first batch of Xiaomi’s Mi3 handset were sold out within the first 30 minutes on Flipkart.
Recent Updates: Earlier this month, Samsung Electronics has officially announced the Galaxy Note 4 and the new version of the Note, the Note Edge at the ongoing IFA consumer electronics show in Berlin.
It had also launched Smart Learning Digital Education Store at a press event in New Delhi to deliver study material to 70 million Indian students from 1st to 12th classes for CBSE board and another 4.5 million students who are preparing for competitive examinations.
Samsung had also announced the joining with Dell, Broadcom, Intel, Wind River and other technology companies to form the Open Interconnect Consortium (OIC), a group focusing on device inter-operability standards. This will help to ”define connectivity requirements” to ensure “the interoperability of 212 billion devices projected to come online by 2020″.
Earlier, the company had unveiled its UI in 9 Indian languages for its smartphones and tablet users. also, it had introduced two mid-segment smartphones in India – both under INR 8500. Recently, Samsung had acquired New York based social-video startup Shellby.TV and unveiled health tracking device in May, 2014.