Canon India to offer longer warranties for shop-bought products

Feb 27, 2014

The OEM is aiming to combat online retailer discounts with the move. @ cropped1

Economic Times India reported on the move by Canon India, which is said to be the latest development in the fight “between the top electronic brands and online marketplaces” over steep discounts for online purchases in comparison to buying products in-store.

The OEM is considering offering longer warranties to customers buying goods in-store as one of “several measures” that it and other brands are exploring to try and “rectify the increasing tilt towards online shopping”, particularly due to the fact that websites “offer choices and prices traditional retailers can’t match”.

Fellow OEM Toshiba, alongside Chinese PC manufacturer Lenovo, have already placed warnings online in India stating that three of the country’s largest online marketplaces – including Amazon.in – are “not authorised to sell their products”, whilst the Indian Cellular Association (ICA) is planning to “issue a consumer advisory on the checks a consumer needs to do before buying products online”.

The moves, thus far, have “had little impact” on online sites, with most continuing to “give huge discounts”, with one of the sites in India, Flipkart, stating that it “connects thousands of sellers across India to millions of buyers” as well as helping small retailers grow their business by selling online rather than offline. A bone of contention appears to be that many online retailers in India are selling products below the minimum operative price (MOP) defined by brands.

Canon’s Executive Vice President, Alok Bharadwaj, stated that the OEM is “considering separate warranties, for example a one-year warranty for online and 15 months for offline”, adding that “the problem is that the online retailers are providing heavy discounts that destroy the price point of offline traders”.

He added that Canon is also considering “creating a differentiation between online and offline by offering additional services offline”, including special workshops for customers. Earlier in February, the OEM launched a certification process for authorised online retailers of printers so as to prevent being undercut by online retailers.

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