Samsung to stop selling 48 smartphones online - The Times of India
While its peers like Xiaomi and Motorola are busy selling millions of handsets online, the South Korean giant has given in to mounting pressure from thousands of brick-and-mortar retailers over predatory online pricing and has decided to extend exclusivity on selling rights of 48 models, including its much-awaited Galaxy Alpha and Note 4, to offline retailers.
Offline handset retailers have been facing the heat from their online counterparts due to heavy discounts offered online, which they couldn't match. This has led to the formation of All India Mobile Retailers Association (AIMRA), a body that has vowed to work for the mutual benefits of brick-and-mortar retailers and maintain price hygiene across trade channels.
TOI had reported in August that Samsung was facing dealer unrest due to predatory pricing by online retailers.
While addressing a large gathering of retailers from AIMRA in the capital recently, a senior executive with Samsung Electronics said: "We have taken action against many rogue distributors, who were dumping their stocks online and beating down the price of our handsets. We are working hard to bring back price hygiene in the market. Our revenues from online sales have come down from 30% to single digit. We also have plans to stop billing WS Retail, the largest reseller on Flipkart."
"Perhaps the fact that around 80% of India's Rs 60,000-crore handset business is still done through offline retail might be reason for the company to shy away from online trade.