It looks like much love has been lost between leading camera manufacturer Nikon and online marketplaces. Nikon has apparently issued a warning to its customers, cautioning them from buying Nikon products from ecommerce websites. The warning, issued in June 2014, states, “Please note that E-Commerce Websites like FLIPKART, SNAPDEAL are not our authorized partner/dealer, we advise you to check the warranty entitlements while buying from online portals.”
Irked by this, Flipkart has taken the matter to court. The leading ecommerce site feels that it is being ‘singled out’. A Flipkart associate said on condition of anonymity, “We are selling the same product and therefore, we are asking the high court to restrain Nikon from publishing the statement on their website.” Flipkart’s argument is that it sells only authentic and new products on its website, so this statement by Nikon is uncalled for. The case has been filed in the Karnataka High Court.
Interestingly, Nikon had issued a similar statement in 2013. It had been the first electronic product firm to take a stand against ecommerce websites. Nikon’s fears are legitimate, as the discounts promised by online retailers would eat into the manufacturer’s earnings.
Snapdeal had successfully fought against kitchen appliances company Kaff in late 2014. Kaff had accused the ecommerce major of selling ‘fake products and undercutting prices’. Kaff had apparently refused to provide warranties to customers who bought products from Snapdeal. The Delhi high court stayed the notice, giving relief to Snapdeal.
Now the question is can Nikon (or any other manufacturer) forbid online retailers from selling their products? Can the discount factor be taken as an offence so huge that a statement be issued against specific etailers?
Perhaps if manufacturers issue clear legal terms limiting resale of their products to authorised dealers it would reduce confusion.
There doesn’t appear to be any major change as a result of the statement(s). It is business as usual for all ecommerce players. While we cannot comment on the case Flipkart has filed, going by the history of such tussles, it appears as though the ecommerce sites will be given preference. Will this hot up competition for manufacturers? Will they also resort to discounting? Or on the other hand, will online sellers be made to adhere to standard prices? We will know when the verdict comes out.
Editor team is specialized in introducing the marketplace content targeting the Indian online sellers. They plan and coordinate to bring the appealing content for the small businesses on how to partner with the e-commerce sites like Amazon and Flipkart and strategies for improving their online business.
Leave a Comment
