January 18, 2021

Samsung: Offline cellphone retailers accuse Samsung of misusing buyer information to drive gross sales on its web site

New Delhi: Offline retailers have accused cell phone model Samsung of misusing buyer information to divert gross sales from the offline channel to Samsung.com.

Samsung had distributed reward vouchers price Rs 10,000 every for getting its Word20 from mom-and-pop shops. “However these vouchers may solely be redeemed at Samsung.com,” the All India Cell Retailers Affiliation (AIMRA) stated in a letter to Ken Kang, Samsung India’s cellular enterprise head.

“Our pre-booked clients are receiving messages with higher offers and reductions as an “Just for you” provide the place they’re being provided an additional good thing about Rs 2000 making it Rs.12,000 in the event that they purchase the pre-booked handset from Samsung.com.”

Samsung did not instantly reply to an emailed question from ET.

The physique has additionally threatened to take authorized motion in opposition to the model if it doesn’t cease sending emails and messages to clients of offline retail.

“It is a clear technique to divert our clients intentionally to your on-line portals. Additionally, you will be pitching higher offers and provides for all of your upcoming merchandise to be purchased out of your portals, which is once more unfair, unethical and an absolute breach of belief,” AIMRA stated within the letter.

Samsung India’s Senior Vice President Asim Warsi, in an announcement final month stated that the model is focusing on 10% gross sales from its personal ecommerce channel, pushed by varied applications launched by the corporate together with buyback scheme, scholar provides and referral program.

Warsi additionally instructed ET in an interview just lately that the corporate is equally invested in each on-line and offline channels. “We don’t determine the channel on behalf of shoppers. Crucial process is to create innovation which is able to create demand,” he stated. “Over 25 years us being India, most strategic investments have been in the direction of offline enlargement and rising the channel.”

The retailers’ group which represents 1.5 lac cell phone sellers additionally stated that the unavailability of Samsung tablets within the offline channel has created a chance for rival model Lenovo to fill the hole. Samsung tablets are completely bought on Samsung.com and e-commerce companions Amazon and Flipkart.