Pricing conflict forces handset makers to launch exclusive online brands

Pricing conflict for offline and online sales forcing Indian hanset makers to opt for the concept of having exclusive brand for online sales of mobile phones.
Pricing conflict forces handset makers to launch exclusive online brands

KOLKATA: Pricing conflict for offline and online sales forcing Indian hanset makers to opt for the concept of having exclusive brand just for online sales of mobile phones, says PTI report. 

Micromax Informatics, the second largest handset company in India, has recently launched a new online brand YU. Soon after this development, several other handset makers are keen to follow suit. 

'We have also launched Maxcell brand for mobiles only for online marketplace,' city based mobile handset brand Hitech Mobiles Managing Director Mohammed Gyasuddin told PTI.

The MD further added that earlier there had been conflict with offline stores as e-tailers use to sell handsets at deep discounts.

'With exclusive online brand, the issue had been resolved as no price comparison factor remains valid,' Gyasuddin said in the PTI report.

With the launch of online brand, the company would be able to offer at least 15% discount to consumers as the platform eliminates presence of middlemen which is most crucial aspect of offline stores.

The telecom firm will continue to sell Hitech Mobiles online platform but the price for both the platforms will not vary.

In recent past, some consumer durable companies refused to offer warranties to online sales of goods on online marketplace, in an effort to plug price gaps that offline stores failed to match with e-retailers.

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