Accusing tech giant Samsung of misusing customers’ data to divert sales from the offline channel to the company’s official website, offline retailers have termed the practice “unfair, unethical and an absolute breach of trust”.
South Korean multinational conglomerate had given gift vouchers worth Rs 10,000 each for purchasing its Note20 from mom-and-pop stores.
“But these vouchers can only be redeemed at Samsung.com,” the All India Mobile Retailers Association (AIMRA) said in a letter to Samsung India’s mobile business head, adding “our pre-booked customers are receiving messages with better deals and discounts.”
The association is also mulling to take legal action against the brand if it does not stop sending e-mails to customers of offline retail.
AIMRA said this is a clear strategy to divert our customers “deliberately” to your (Samsung’s) online portals.
“You will also be pitching better deals and offers for all your upcoming products to be bought from your portals, which is again unfair, unethical and an absolute breach of trust.”
Last month, Samsung India Senior Vice President Asim Warsi said that the company is targeting around 10% sales from its own e-commerce channel, as it has launched several initiatives, including buyback scheme, student offers and referral programmes.
When asked about concerns of offline retailers, Warsi told ETTelecom that the company is equally invested in both online and offline channels.
“We don’t decide the channel on behalf of consumers. The most important task is to create innovation which will create demand,” he said.
AIMRA also added the unavailability of Samsung tabs in the offline channels has created an opportunity for rival brands like Lenovo to fill the gap.