Flipkart negotiating fresh deals with Samsung, LG
Flipkart, is renegotiating its deals with consumer durable majors such as Sony, Samsung, LG and Philips. Some of these companies had threatened to stop supplying their products to the e-commerce giant.business Updated: Oct 08, 2014 23:38 IST
Flipkart, India’s largest e-commerce company, is renegotiating its deals with consumer durable majors such as Sony, Samsung, LG and Philips.
Some of these companies had threatened to stop supplying TVs, microwave ovens, air conditioners etc to Flipkart following the latter’s “Big Billion Day” sale on Monday, in which it sold these items at below-cost price, making it difficult for these companies to sell their products through their regular distributors.
HT has learnt these companies and some others have called a meeting with Flipkart promoters Sachin Bansal and Binny Bansal later this week.
“As the largest marketplace in India, we have thousands of sellers and brands selling their products on our platform. We value our relationship with every seller and brand and it is our continuous endeavour to facilitate an e-commerce platform that is beneficial to both them and our customers,” said Kalyan Krishnamurthy, senior vice-president, retail, Flipkart.
Top executives in major consumer goods companies, however, confirmed that an e-mail has been sent to Flipkart’s management, asking them to explain the pricing aspect and also renegotiate agreements.
“We have been regularly monitoring developments in both the online and offline retail space,” Samsung India spokesperson Rajiv Mishra said in an email response to HT. The LG India spokesperson refused to comment, but one of its top executives, Sanjeev Agarwal, vice-president, sales, was quoted in various media as saying, “We do not deal with them directly, and they are not our authorised trade partners.”
The Sony spokesperson did not comment at the time of going to press. But a top executive said, “We have written to them asking for an explanation on the pricing.”