Online retailers and marketplaces have been receiving a lot of flak for selling products, especially electronics, at deep discounts to attract consumers. Amidst allegations of predatory pricing and cutthroat competition, looks like some brands are out to solve the issue without waiting for the offline and online retailers to reach a settlement or make peace with one another.
Lenovo’s step – Differentiated products
Lenovo, Chinese electronics major, has started working on making differentiated products for the online and offline platforms so that a wider variety of devices can be offered to consumers. Interestingly, Lenovo was one of the first brands to warn consumers from buying from unauthorized ecommerce sites.
“We have always said the business of discounted pricing cannot last forever. It is not sustainable in the long run. While we have issued advisories in the past to customers, now we are working on a differentiated products strategy where specific products are sold online and another offline,” Lenovo India Managing Director Amar Babu told PTI.
He said that while consumers could choose from the options depending on their needs, both offline and online retailers would get more options to choose from.
Many in the industry have raised concerns about predatory pricing and are expecting the government to step up and put regulations in place to ensure security of offline retailers as well. Even the traders’ body, CAIT voiced concerns about the unethical practices followed by online retailers now.
Babu mentioned how Lenovo has already taken steps in this direction; “We have already said we will not offer warranty to devices purchased from unauthorised sellers. We are also taking steps to identify people who are indulging in such activities and stopping supply to them.”