Lenovo developing differentiated products for online and offline to overcome ‘predatory pricing’ issue

Amid cut-throat competition and allegations of predatory pricing between online and offline retailers, Chinese electronics major Lenovo is working on bringing in differentiated products for the two platforms to offer a wider choice of devices to end-consumers.

Many sellers on popular e-commerce sites like Flipkart and Snapdeal have been selling products, especially electronics, on discounted rates or what physical retail stores refer to as “predatory pricing”.

Lenovo was among the first players to caution consumers against buying from unauthorised e-commerce platforms and online shopping sites. Since then, players like Asus, HP and Canon have issued similar advisories.

“We have always said the business of discounted pricing cannot last forever. It is not sustainable in the long run. While we have issued advisories in the past to customers, now we are working on a differentiated products strategy where specific products are sold online and another offline,” Lenovo India Managing Director Amar Babu told PTI.

Consumers can check both and then decide on what suits their needs, he added.

“This will help both online and offline retailers and consumers will also get a wider range of devices to choose from,” he said.

Industry players have in the past raised their objections to “predatory pricing” that they say is hurting the industry.

“We have already said we will not offer warranty to devices purchased from unauthorised sellers. We are also taking steps to identify people who are indulging in such activities and stopping supply to them,” Babu said.

Traders body CAIT has expressed concerns over huge discounts being offered by e-commerce firms and has asked the Commerce and Industry Ministry to take steps to monitor and regulate online businesses.

It has also demanded for setting up of a regulatory authority for e-commerce business in India.

IMPORT:-BGR