Brands now targeting online and stores differently

In order to steer clear of the war between online and offline retailers, consumer brands may soon ensure that their products on e-commerce platforms such as Flipkart and Amazon are different from those retailing at traditional brick-and-mortar outlets.

For example, Taiwan-based BenQ, manufacturer of LCD monitors and projectors, has already diversified its portfolio.

“Some of the models are strictly available online, while others are only available offline. We want to separate the portfolios so that we can work with the entire ecosystem and service segments that are presently being left out,” Rajeev Singh, Country Head at BenQ India.

In India, there is growing friction between online and offline retailers over heavy discounting. Last October, traditional retailers protested against Flipkart’s Billion Day Sale as they were being hurt by its alleged predatory pricing. The complaints by traditional retailers led to the government saying it would examine e-commerce policy. Following this, Amazon’s October 10-16 Diwali Dhamaka Week was subdued affair with sharp discounts were restricted to stock clearances and products sold exclusively on the site.

“Segregating the product portfolio is a middle path that will benefit both online and offline players,” said Ashish Jhalani, Founder of advisory and consultancy firm E-tailing India. Even some of the larger brands such as Motorola and Samsung are looking at manufacturing different models and products for online and offline distribution, added Jhalani.

US-based smartwatch maker Martian, which is differentiating based on the complexity of its models, recently made its ‘Notifier’ line available in India exclusively through Flipkart

“If the product has got one level of complication, for instance our voice command watches, then it is better to sell it offline. A salesman who can stand behind the counter and tell you a story will be more effective,” said Kartik Iyer, ýRegional Head — Asia, West Asia and Africa, at Martian Watches. He feels that simpler products, where significant play on pricing and discounts could be done, are more suited for the online channel. Martian is set to unveil crystal studded watches later this month, many of which would be retailed through jewellery outlets only.

Textile major Arvind, which owns brands such as Arrow and Tommy Hilfiger, had launched a web-only custom clothing brand called Creyate last year. If the dual channel retailing is successful, more companies may consider different products for online and offline channels.

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