Struck by online charm, Vu Technologies ties up exclusively with Flipkart

Banking on the success of online retailing, California luxury based TV maker Vu Technologies has tied-up with e-tailer Flipkart to sell its offering online. The company will sell televisions wide ranging from Rs 9,000 to Rs 9 lakh from March 2015.

“Years ago, Vu entered the television market with a limited range of products available in stores. Today, Vu is launching a vast range of television sizes and configurations to compete with the likes of Sony, Samsung, and LG – and these new televisions are available to the public for purchase online,” said Devita Saraf, CEO and Design Head, Vu Televisions.

Saraf added that the rationale behind going online was to offer the products at affordable prices. “Traditional retailers are asking for higher margins than online retailers and thus driving up the costs of electronics to customers. By going online, Vu has bypassed these extra expenses to create more affordable products without sacrificing quality or service,” she noted.

A big risk?

While it is common these days for consumer goods brands to tie-up with eCommerce players exclusively, Vu TV has taken a bold step by planning to sell its UltraHD or 4K technology range online, which is priced at Rs 90,000.

“In a market, which is dominated by Samsung, LG and other such players, it would be interesting to see how Vu TV markets itself online,” said an industry expert on the condition of anonymity.

However, he quickly added that since the consumer behavior is changing, hence, the chances that the brand will taste success are quite possible. “While buying a TV is not an impulsive purchase, it is equally true that people are gradually moving towards online retail stores for better prices. If consumers can buy two-wheelers online, it would not be wrong to expect people to spend Rs 90,000 on TV,” he noted.

Other big bets

While it remains to be seen how Vu Technologies markets its products online, especially the ones in the higher price range, there have been some other big brands that entered into similar agreements with other e-tailers.

In December 2014, two wheeler maker Hero Motocorp tied up with Snapdeal to sell its bikes online. And the company claimed to have been successful as it sold one bike per minute on Snapdeal.

It should be noted that Vu has tie-up with Flipkart for online sales of TV sizes up to 55 inches. Interestingly, the company will continue to sell the larger Vu televisions directly from Vu or in stores. It should be noted that Vu had tied up with Flipkart in May last year.