LG Electronics India, the market leader, offers additional one-two years of warranty on televisions sold through stores, compared with a one-year warranty for online purchases. It also varies features by sales channel for certain appliances.
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Haier India, the third-largest manufacturer in the country, offers premium refrigerators with water dispensers online, while offline models feature glass doors or mirror finishes.
Brands to sell different product versions across channels to appease offline retailers
Online models include three-door refrigerators, compared with four-door models in stores. Its televisions come with an extra year of warranty when bought at a physical store.
“While e-commerce is the fastest way to reach consumers, we have a huge dealer network of over 35,000 stores. Both can co-exist with different models with different features or warranties,” said LG Electronics India director Sanjay Chitkara.
Haier India chief executive Satish NS said the strategy helps prevent channel conflict, although it entails additional research and development costs.The shift comes as online sales continue to gain share. E-commerce now accounts for 40-45% of television and microwave oven sales and up to 22% for appliances such as air-conditioners and washing-machines, industry estimates show.
Godrej Appliances sells models with different capacities through the two channels, including 500-litre refrigerators and 7-kg washing machines online versus 600-litre refrigerators and 8-kg washing machines in stores. It also varies energy ratings across channels.
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“Channel conflict has now greatly reduced,” said Kamal Nandi, business head (appliances) at Godrej Enterprises Group. Online sales now account for about 18% of industry AC sales, 22% of washing machine sales and 15-16% of refrigerator sales, he said.
Hisense uses plastic lids on washing machines sold online, compared with glass lids for offline models. Its offline air-conditioners also offer better filtration and Wi-Fi connectivity. “The online buyer is a value seeker, while those buying offline tend to buy higher priced models,” said Hisense India chief executive Pankaj Rana.