A group of electronics retailers has decided to stop sale of German white goods company BSH Hausgeräte GmbH, the maker of Bosch and Siemens appliances, the first casualty after they alleged that some consumer electronics companies support online discounts. The biggest retailers in the south including Viveks, Vasanth, Girias, Darling, Shahs and Sathya have issued a written trade advisory in this regard.
“Purchases with BSH to be stopped from 26th December 2018 onwards. All sales promoters at the store shall be retained to liquidate the stock which is in hand till 15th January, 2019. All sales promoters to be removed on 15th January 2019,” the group said in the advisory issued on December 25.
BSH Household Appliances Group, one of Europe’s largest manufacturers of home appliances, sells the Bosch and Siemens range of premium home appliances. The company plans to spend 100 million euros (Rs 800 crore) on setting up a refrigerator factory near Chennai after having started making washing machines in the country recently.
While the trade advisory did not specify a reason, two senior industry executives said the decision was taken since BSH India products were sold at deep discounts during the Navratri-Diwali festive sale. Moreover, BSH India officials had expressed their inability to take action to stop online discounts, they said.
A director with a leading retail chain, which is part of the south group, said the retailers had collectively met senior representatives of all top companies to discuss how to stop online discounting. “We are not against any brand but we have to safeguard our interests since we have invested crores and lot of jobs are at stake if this trend of online discounting on electronics continues. Almost all companies responded positively and said they would get back on how to stop online discounting, except BSH India,” he said, requesting anonymity.
The development was reported by ETRetail.com