While the Big Billion Day sale ran into a controversy online, the infamy spilled offline too. Big names in the consumer goods maker industry and conventional retailers indicted the e-commerce bigwigs Amazon, Flipkart and Snapdeal for devaluing their brands and threatening their livelihood, also disparaged the day that was a turning point in the expansion of the flourishing sector.
As a measure to safeguard their consumers, an advisory issued by LG Electronics on Monday clearly stated that no e-commerce company, except its online store, was authorized to sell its products in India, it does not vouch for their genuineness and therefore, preserves the right of not furnishing additional services or warranties on such products.
Flipkart managed to fend off doubts regarding the authenticity of the products by assuring their customers that they would continue to receive extended services and warranty. Following the event, officials of several consumer goods makers said that they would regulate online discounts.
Disappointed with the sale war of Monday, Sony said it will not allow massive online discounting of its mechandise in consequence of the fact that the company's brand image is impacted and accused the e-retailers of violating business arrangements. Sony India sales head, Sunil Nayyar, said that the brand had experienced maximum brunt due to online discounting and affected company’s reputation as customers who brought their products prior to the sale at correct market prices could blame the brand for cheating.
Reaching an agreement for selling offline models with Flipkart and Amazon, Canon said they cannot discount it and that it would ask distributors to have separate sets of products for online and offline sales channels.
Lenovo India MD Amar Babu, said his company would like a fair competition in the marketplace and did not support growth of one channel with the loss of another.
Other than the harsh criticism from the consumer goods giants, the episode also witnessed a huge hue and cry from the brick-and-mortar retailers afflicted by the massive discounting of online retailers.
Shaken by the online brutal discounting, officials at large retail chains said that e-commerce retailers also implicated distributors as they might now be in a position to demand unreasonable margins other than offending brands.