Whirlpool and Godrej are setting up stores on e-commerce sites to boost sales

After the success story of smartphone sales online, Whirlpool, Godrej and other white good manufacturers are now considering the e-commerce platform seriously.

They have even begun developing a separate line of models for online sales and are mulling setting up their own brand stores on e-commerce websites.

This move will provide benefit to consumers as there would be no warranty problems and higher charges for customer service for goods bought online at a discount.

India’s top e-commerce companies, Snapdeal, Flipkart and Amazon, are trying to bring on board makers of televisions, refrigerators and air-conditioners.

Godrej Appliances vice-president and head Kamal Nandi told Economic Times the company has started to develop an exclusive line of models for Flipkart and is in talks with others, which he hopes will stop any channel conflict.

Snapdeal is in talks with Samsung and Whirlpool regarding setting up their white goods brand stores on its website.

Senior vice-president (electronics and home), Snapdeal, Tony Navin told Economic Times, "The pace of growth of smartphones accelerated after the brands decided to partner with e-commerce and we see similar prospect for appliances as well.”

Meanwhile, Flipkart chief business officer Ankit Nagori told ET that customers nowadays were open to big purchases online.

“Brand stores of VU, BPL and Whirlpool, which sell only exclusive models online, have done well since their recent launch,” he said.

Amazon India director (category management) Samir Kumar told the financial daily that in categories like kitchen appliances, sales were growing at 200% and since they launched large appliances last December, the category sales grew at 30% month on month.

“Televisions have already become the second-biggest electronics category after mobile phones and he sees a huge rise in demand,” he added.

Reportedly, e-commerce presently accounts for 3% of sales for the Rs 40,000 crore television and white goods industry. The industry expects a 10% contribution from online in the next couple of years.

Videocon chief operating officer CM Singh was of the view that e-commerce firms reached out to set up brand stores after several companies clamped down on supplies.

"The brand store will be monitored by the company and the prices will be set by us. Once the order is finalised, the product will be delivered by our dealers," he told ET.

(Image: Reuters)