Computer hardware dealers are a worried lot after Samsung India recently started a campaign against grey market, or parallel, imports. The Computer Media Dealers Association (CMDA) has shot off a legal notice to Samsung Electronics India and MAIT (Manufacturers' Association of Information Technology), accusing the company of adopting anti-trade and monopolistic practices by barring the association's members from importing Samsung products from international markets.
Samsung, however, is unmoved and says that being the owner and manufacturer of the products and trademark used on those products, it has the right to check and monitor the quality and conditions of its products when they are placed in any market for sale, before the users finally consume it.
In an e-mail response to BT, Samsung India says: "It is a wrong perception that by merely paying applicable Custom duties and complying with the import formalities, all products entering the Indian territory "automatically" become compliant with all product and IPR-related laws and regulations of India."
MAIT numbers say that the current size of the IT hardware market in India is $7 billion (Rs 28,700 crore). Since products of parallel imports come at a cheaper price than their authorised counterparts, they do not offer warranty and after-sales benefits to consumers.
Says Vinnie Mehta, Executive Director, MAIT: "Our association doesn't support grey market products as they curtail revenues to the government from it hardware industry." The edgy dealers are now crying foul over Samsung's campaign saying that it could lead to a price hike or even supply shortage of Samsung products.
Dismissing the claim, Samsung says that price and costing is never the issue. "The campaign is to protect the consumers…, who are lured into buying grey-market products under the impression that they are supported by the manufacturer." Seems like a fair argument.
