Various companies are taking steps to halt the sale of their products at predatory prices in an effort to curb dilution of their brand equity, prevent cannibalisation of offline sales and thwart efforts to push fake products.
With this, some are entering into or strengthening direct selling arrangements with online marketplaces. Companies like Sony, Apple, LG and Eureka Forbes are intensifying these measures after Flipkart and Amazon offered heavy discounts and cashback deals during their festive sales.
It has been stated that such measures by companies return after two years. Eureka Forbes has taken legal action against 200 vendors for selling its products at deep discounts on e-commerce websites, warning them against making such unauthorised offers because the company has designated online sellers.
“The unauthorised sellers on the marketplaces pose a huge threat to consumers. Lured by lower prices, consumers may end up buying fakes or assembled products,” Eureka Forbes chief transformation officer Shashank Sinha said.
He also stated that it has brought down the over 1,100 unauthorised online sellers found at the beginning of the year through concerted action.