Well according to you online sellers are buying from the resellers then how they can give items at low rates? and if they are giving at low rates after purchasing from the resellers then that means the brick & mortar shop owners are looting us.
It depends on the context. Most B&M stores do loot the customers. On top of the product price, they add a lot of extra costs that they incur for their business which is fine, but they then also add insane amounts of margin. On the flip side, many on line retailers gain a pricing edge by selling at a loss. For example, Flipkart may sell a 5k product for 4.5k and eat the 500 Rs loss as a brand building cost. Why do you think Flipkart had a 1300 crore loss last year? This is called predatory pricing and this type of strategies are used not only to build their own brand, but also to ensure that people don't buy from anybody else.
Both the things are bad and neither of them is playing fair, so, as a customer, I am even fine with the predatory pricing on line. I would prefer to buy anything on line over going to a B&M store, but then If I want warranty, I would still go to an authorized seller. I don't have unfair expectations from manufacturers.
How they can say we are doing against laws just consider that if stationary shop buy some product from reseller for example a soap and he sells it according to you he is breaking the law.These sales may be unauthorized but not illegal because they are selling original only not copy cats.About the softwares these may be true but for hardware things i don't know.
I said it is illegal in some countries, I am not referring to India. In India, such kind of unauthorized sales enjoy the same status as parallel imports/grey market items. You can buy them for what ever price you are getting it at, but the manufacturer has no obligation towards that product. You obtained the product from somebody who they don't know or authorize, so why would they need to provide any service.
Its a really simple concept and I don't see why you cannot understand it, Lets just take an example...
Lets just say you created a new product and decide to sell it with a personal warranty of 30 days.
- Lets say Person A brought some units of the item on day 1 for Rs 100 each. Person A then decides to sell some units to some Person B on day 20 for Rs. 110 each. Person A tells person B that he has 30 days warranty.
- Person B sells some of units of the item to Person C after 10 more days for Rs 130 each and tells him that he has 30 days warranty.
- Person C them sells an item to Person D and E after 20 more days for Rs 150 and tells them that they have 30 days warranty.
- Now person C was a careless person and person D got a damaged item. Person E also finds that his item no longer works after 5 more days. Person C directs both these persons to you since you are the original manufacturer who is offering the warranty.
55 days after you sold the items to Person A, you are approached by Persons D and E with a receipt from Person C none of whom you know at all and they want you to either replace the item or refund your Rs 150 each. Now you tell me how you are going to respond?
Option 1: You tell them that you have no liability towards the warranty promises given by Person C to D and E and that your obligations are only to Person A and only from date you sold to Person A. You ask them to go to Person C with their problems.
Option 2: You either replace the item or refund Rs 150 each to Person D and E at your expense
This companies saying that cheap means their brand value is diminishing,what is the concept behind it actually people will like more if they give quality products at such low rates.
It is called brand perception. We have many Chinese phones in India and people think they are of poor quality. When a brand like Xiaomi comes in and also sells at same same price point, People assume that they are also just another brand and of inferior quality. I know many people who didn't know about Xiaomi tick of Mi3 as just another cheap Chinese phone.
This is especially true in countries like ours where people associate cost with quality. Anything that is cheap is considered to be of poor quality. So even when a good quality product is sold too cheap, it will have a negative impact on the overall brand itself and their ability to do business. There is a reason why Companies like Apple have abnormally high prices. Its not like they are doing it just for margins. Reducing the prices would actually have a negative impact on how people perceive their brand.
