Gionee Planning to Stop Selling on Online Marketplaces

png;base645cf9eb331ef63616Chinese mobile manufacturer, Gionee is planning to stop selling on certain marketplaces in the country. In light of recent heavy discount sales across all categories, the company is making this decision to protect the trade sentiments.

As per a source with knowledge of this event, the mobile maker is going to try and stop the selling of its products on unauthorized e-commerce portals. And in case any sale happens through such a portal, then the product warranty would be made void.

This is not an isolated case, Samsung had taken 48 of its models offline since it was facing heat from its traders who shouted against the online counterparts who don’t sell at competitive rates.

Also Read: After Sellers and Customers Flipkart to Face Heat from the Government and Consumer Electronics Brands

In a recent report by The Economic Times, consumer goods manufacturers like Sony, LG, Samsung, Canon and so on are accusing online retailers like Flipkart, Snapdeal, Amazon and their likes of devaluing brands and threatening livelihoods.

“We have just reached an agreement with Amazon and Flipkart that while they can sell offline models, they cannot discount it. We hope Monday’s sale is just one-off scenario and will not be repeated,” said Canon India Executive Vice President Alok Bharadwaj.

The online sale war of Monday was really disappointing and alarming. This is not the way we have agreed to do business as partners,” said Sony India sales head Sunil Nayyar.

It seems that in their quest for customer acquisition the online players are destroying the market for everyone. While they are getting infused with investors’ money everyone else is losing out., including the customers.

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  1. 1

    Globally the industry average commission by online sales platform for general products is less than 5%. in India Flipkart and other are charging merchants between~25% of total sales value. i wonder why no one is raising issues for this????

  2. 2

    brick & mortar stores have historically played truant. they don’t want to compete. its not like they are taking care of employees, if their bottom line was hurt, they’d be the first fire them. they are no angels either – they dont provide service – its provided by the manufacturers, they are just middlemen who want fool the consumers

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