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 to be rejected. Even Google, which had acquired Motorola in 2012, could not lend the estranged smartphone brand some credibility.
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?
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