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INSIDE THE EXCLUSIVE DEALS

Of exclusive deals and dire straits

Exclusive smartphone deals for e-commerce firms have become a crucial strategy. To increase sales, and to block competitors. But at what cost?

27/01/17

Moulishree Srivastava

Online channels accounted for 31% of the total smartphone sales in Q3, 2016 in India

Cumulatively, exclusive deals generated about half of the smartphone revenues for e-commerce firms.

Exclusive deals primarily involve negotiations on margins and marketing budget.

The ultimate key to negotiation will be which party has more leverage

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When Motorola came to India with the first generation Moto G in late 2013, almost a year after exiting the country, not a single distributor wanted to take a bet on the brand. A team that was being managed from the Motorola London office had reached out to all the big offline channel partners, only…

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