Kenwood: No Exceptions Internet Policy

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Kenwood launches no exception Internet protection for retailers at CES
Kenwood's Keith Lehmann at CES
Kenwood Electronics announced it’s implementing a “no exceptions policy,” for unauthorized sellers of its products on the Internet.

A reason for the stricter enforcement is that consumers are not just shopping on the Internet, but they are shopping on the mobile Internet—on their smartphone while they are in a retail store.

So Kenwood said it will clamp down on transshippers. “We can reduce the dealer getting shopped on the Internet and losing a sale to [a retailer] selling just a few dollars below him,” said SVP consumer electronics Keith Lehmann.

The manufacturer is also putting more video demos online that consumers may see on their smartphones and it’s stepping up its social networking program. It plans to build up its visibility on Facebook and then direct consumers to retailers. It’s also planning more in-store point of purchase tools.

“It’s a program that’s overdue,” said Lehmann.

Kenwood said it’s had a banner year in 2010, winning the top 3 market share placements in every product category in car electronics including in-dash navigation, CD receivers, speakers and amplifiers.

Although the CD receiver market is declining, Kenwood said it actually saw higher sales in 2010 than in 2009.

Source: Kenwood Electronics

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8 Comments

  1. I believe that as retailers we get to decide to support the manufacturers that support us. I might take a look at Kenwood again if this new policy of theirs holds true. I support Memphis and K40 for their strong positions in protecting the retailers that represent them. Good for Kenwood.

  2. Check your facts…the least expensive Kenwood CD deck on Best Buy’s website right now is $99.99 (not $59). Back up and look through the CES press releases for other vendors sticking their neck out to deal with this issue before attacking the only one who IS trying.

  3. I agree with Eric. Perhaps people should look at the fact that at least Kenwood is a manufacturer that is trying! This is a leadership position and I’m glad to see that someone has stepped up. Instead of taking the easy position of complaining about it make the effort as Kenwood has by providing support and embracing effort taken.

  4. What about Retailers that have no contract and don’t buy direct from Kenwood but from distributor’s only?
    And if Best Buy sold car cd players for 59 bucks perhaps that’s why I didn’t sell so many head units to my used car dealers last year.

    How can you make profit for a car cd player for 59 bucks when that’s at or about cost? and if you’re a retail buyer do you think if you get that installed its less than paying normal retail for the same unit at a mobile electronics retailer that don’t sell vacuums and dishwashers, Best Buys mark up is in its add no’s and labor like warranty ex… Shop supplies for a radio install (Rag’s)
    PLEASE!

  5. “Although the CD receiver market is declining, Kenwood said it actually saw higher sales in 2010 than in 2009.”

    That’s because Best Buy was down to $59 for a Kenwood CD receiver.

  6. This is all for show and to try to calm Kenwood’s retailers. There is no way that this can be controlled. If Best Buy and other mega-retailers aren’t able to do it, do you really think one suppler can??

  7. i can truly appreciate any effort made by any of the manufactures in protecting their lines from being sold over the internet. I can the companies that do that pirates. I own a car stereo shop and its difficult explaining to people why they should spend more at my store than buying over the internet for cheaper prices. I have to pay for my overhead and personnel where as some of these internet companies don’t have any overhead. Also by representing these companies I have to sign paperwork that i will not sell below retail. Its hard to compete against a company selling slightly above dealer cost. thank you for your efforts on this matter.

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