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.
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 as