LG, Samsung threaten to boycott Flipkart

Last Updated: Wed, Oct 08, 2014 11:58 hrs
Flipkart

Flipkart's 'Big Billion Day Sale' has irked more than disgruntled customers. Now, top consumer electronic manufacturers, such as Samsung, Sony and LG have reportedly boycotted sales to Flipkart and may be contemplating legal proceedings against the online retailer for "predatory pricing".

The discounts that e-retailers offered on October 6 severely impacted brick-and-mortar retailers, to the extent that some companies have decided to suspend supplies to Flipkart, until they are assured that there will not be a repeat of goods being sold at unrealistic prices.



"This is a clear case of predatory pricing just to shoot up traffic at their website, and build up valuations unrealistically. This is not acceptable and we will ensure that this does not happen again," a top executive at one of the companies said.

"We do not deal with them (e-retailers) directly, and they are not our authorized trade partners,"LG's vice-president for sales, Sanjeev Agarwal, told TOI.

"The hygiene has to be maintained in terms of pricing. We will hold discussions with the online retailers to look at the way forward and ensure that the pricing is realistic," added Sony India's head of sales, Sunil Nayyar.

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