The retailers have issued an advisory stating that purchases with BSH, the maker of Bosch and Siemens appliances, will be stopped from Dec 26 onwards
A group of electronics retailers has decided to stop selling products of BSH Hausgeräte GmbH, the maker of Bosch and Siemens appliances, after the German company refuses to stop online discounting.
Electronics retailers alleged that some consumer electronics companies support online discounts, which are affecting their business.
The biggest retailers in the south including Viveks, Vasanth, Girias, Darling, Shahs and Sathya have issued a written trade advisory in this regard, ET reported.
“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 India refuses to stop online discounting
Senior industry executives told ET that the decision was made after BSH India offered deep discounts on its products during the Navratri-Diwali festive sale. BSH India officials, they said, had also expressed their inability to end online discounts.
The retailers had collectively met senior representatives of all top companies to convince them 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,” a director with a leading retail chain, which is part of the south group, told the daily newspaper.
According to the source, almost all companies responded positively and said they would get back on how to stop online discounting, except BSH India.
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 recently started making washing machines in the country. Now it plans to spend 100 million euros (Rs 800 crore) on setting up a refrigerator factory near Chennai.