Samsung & Apple Have Made Broad Modification To Their Distribution Models

Samsung and Apple have made broad modification to their distribution models, both online and offline channel.

With the advent of online shopping, the offline channels are raising their voices to streamline the e-tailers predatory pricing or disturbance in the MOP. In this direction, Samsung has taken this move, which would help in settling the price parity issue and allow both the channels to work in tandem.

Looking at the growing complaints, Samsung is reported to have set up a ‘brand store’ on the websites of its e-tailers including Amazon, Snapdeal and Flipkart, where only sellers authorised by the vendor can offer its products at prices mandated by the company, preventing predatory discounting.

Unauthorised sellers henceforth won’t be able to offer Samsung products on these websites, as per an Economic Times report.

The report also said that Apple, on the other hand, has told its retailers to purchase the devices from its four authorized distributors in the country – Ingram Micro, Redington, Rashi Peripherals and Brightstar.

Earlier, retailers could buy only from designated distributors. The change came after several complaints from offline retailers that online sellers were getting phones from Apple’s designated distributors at lower prices.

These are the first concrete steps by Apple and Samsung to tap the burgeoning ecommerce market in India by working on their traditional distribution lines.

Last year in October, Samsung India said that it will sell 48 smartphones, including its much-awaited Galaxy Alpha and Note 4, exclusively through offline retailers.

The offline channel of Samsung has been raising this price difference issue with the company for a while. This move is likely to bring some respite to its traditional channel, which are quite large in numbers.