You can take the Lenovo and Toshiba stance which hints that these two aren’t in favor of people purchasing from online retailers like Flipkart, Snapdeal and Amazon. Or you can be cool like Motorola and tie up with an e-seller, because you know, we love shopping from our desks and sofas.
While both Lenovo and Toshiba have put up notices on their India websites offering a reason for this negative take, they’re not good enough. Lenovo flatly says Amazon, Flipkart and Snapdeal are not authorized resellers. It cautions users to check out the warranty attached to the products they buy from such portals.
Toshiba claims that since the e-sellers haven’t signed any direct deals with it, they cannot guarantee the quality of goods. Additionally, customers may not benefit from the sales promotional schemes the company sometimes introduces through its authorized dealer network in India. But the truth is probably simpler than that.
Lenovo and Toshiba are probably making a big mistake
Online sales are obviously hurting offline resellers who have to make the rent for their outlets or at least pay overhead charges for stocking the goods in a presentable condition for customers. Retailers like Flipkart have a little less to worry about on similar grounds, though extra services like its exceptionally prompt reverse pickup does cost the company.
So e-vendors can afford to charge lower than brick-and-mortars for their products. Also, since the market competition online is heating up in India, they seem willing to slice their profits margins fine. This is obviously troubling Lenovo, Toshiba and other brands.
According to the Boston Consulting Group, India’s online retail business could be a $84 billion industry by 2016. By discouraging people from buying their goods through popular online websites, Lenovo and Toshiba are not exactly being smart. What’s your take?