Gionee calls out to customers to stop buying phones online
Indian phone producer Gionee has advised potential customers against buying phones from unofficial e-commerce websites.
Gionee stated that recent happenings have proved buying devices on these websites is more dangerous than people think. The company said that customers should buy only from outlets and authorized distributors.
Looking at the issue from our own point of view, it seems that Gionee wants to tackle the price competition generated by online retailers.
For example, India e-commerce portal, Flipcart, sells the Gionee Elife S5.5 at just INR 20,999 while the Gionee launched the phone at 22,999, thus providing heavy deficit on the side offline retailers who pay for more man power and shop rent and therefore cannot sell their products on slim profit.
Even at that, the online retailers do not provide after sales services and maintenance to customers even after accumulating the huge profit margin.
Hear what Arvind Vohra, of general manager of Gionee India had to say:
“Selling at discounted rates is hurting our brand because these e-commerce sites are discounting prices way below other retail outlets. Also, they do not provide any after-sales service which is fundamental to Gionee. If customers face any issues, the e-commerce sites turn them away saying it’s a brand issue,” Vohra said.
“While there is nothing wrong with selling at competitive prices, it does affect our brand perception and I would like to clarify that Gionee does not have any direct arrangement with any e-commerce portal in India.
He added, “As of now, Gionee sells only through its e-store and registered distributors with its products available across over 20,000 retail stores.”