CYPRESS, CALIF. — Car electronics
supplier Clarion has been dropping
distributors and direct dealers that
have repeatedly transshipped products
to unauthorized brick-and-mortar and
online retailers.
The actions, which the company
called “drastic,” have “strengthened
Clarion’s brand and its business with
the remaining authorized dealers and
distributors,” the company said.
Since early this year, the company
dropped 10 dealer or distributor
accounts, and other warning letters
are outstanding, a spokesperson said.
If those companies don’t take action
within a certain time span, the spokesperson
added, “They will be getting a
termination letter.”
“Our company has made a significant
effort to track, monitor and eliminate
transshipping and unauthorized sales,
whether brick and mortar or over the internet,”
added president Tom Hayashi.
The industry, he added “cannot continue
to allow this practice to happen.”
Clarion has also notified its distribution
network “of not only the benefits
of this activity but also the consequences
of violation, including termination of
business,” the company added.
The company said it has been
strengthening its relationship with
authorized dealers by promoting its
dealer support extranet, TeamClarion.
com; offering Authorized Clarion
Dealer stickers; and emphasizing
product training.
