Why Samsung Stops Selling Smartphones Online?

BANGALORE: The fact that Samsung stands at top of the global smartphone heap isn’t new information. But in a move that might change the dynamics of India's flourishing mobile phone market, the Korean company Samsung—the country's largest Smartphone maker, has decided to take the offline retail route even as the rest of the players are moving online, reports TNN.

While its competitors like Xiaomi and Motorola are busy selling millions of handsets online, the South Korean giant has decided to stick on to the old-fashioned offline retail selling due to the mounting pressure from thousands of retailers over attractive online pricing. However, the company has also decided to extend its exclusive selling rights of 48 models, including its much-awaited Galaxy Alpha and Note 4, to the offline retailers.

As the heavy discounts offered online are not been able to match by the offline retailers, this developments has further led to the formation of All India Mobile Retailers Association, a body that is devised to work for the mutual benefits of brick-and-mortar retailers. Additionally, the company also reported that, it has been facing dealer unrest due to predatory pricing by online retailers.

Arvind Singhal, founder and chairman of retail consultancy, Technopak, said, “It's a regressive move, especially before the festive season when you are going to see a lot of discounts online.” He further added that, "Perhaps the fact that around 80 percent of India's 60,000-crore handset business is still done through offline retail might be reason for the company to shy away from online trade. But, Samsung needs to wake up to the fact that it's not the future since Chinese manufacturers are offering same spec handsets at one third of the price."
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