Toshiba Launches Comprehensive Authorized Dealer Program

20-Apr-00

Toshiba America Consumer Products, Inc. today announced an authorized dealer program that will establish a nationwide network of authorized Toshiba dealers, distributors and online retailers. Beginning June 1, 2000, every retailer and distributor in the US wishing to sell Toshiba products must sign an authorization agreement with Toshiba. The program includes separate dealer agreements for Toshiba's Cinema Series, regular line and mass merchandiser retailers, as well as separate agreements for distributors and online retailers. Rick Calacci, Toshiba's Vice President, National Field Sales, noted, ""As Toshiba continues to grow and expand its distribution, it is crucial for us to carefully manage every aspect of our business. It is vital that we make sure everyone who sells and represents our products does so in a manner consistent with Toshiba's premium brand image and reputation for quality, reliability and service. This dealer agreement program will ensure that no matter where a Toshiba product is merchandised, whether it's in a brick-and-mortar establishment or online, consumers can be sure that Toshiba stands behind that product with all its resources and reputation."" In addition to its authorized dealer agreements, all Toshiba distributors will be required to sign an agreement stating that they will resell Toshiba products only to authorized Toshiba retailers. There are strict guidelines in place that must be adhered to by all retailers and distributors who sign agreements with Toshiba. To help consumers identify retailers that have been approved by Toshiba, the company has created two special ""Authorized Toshiba Dealer"" logos. The first may be used by Toshiba dealers for all in-store merchandising materials, storefronts and signage, as well as print advertisements and catalogs. An additional logo has been created to identify authorized Toshiba online retailers. Toshiba's E-Commerce Strategy In addition to establishing a nationwide network of authorized brick-and-mortar dealers and distributors, Toshiba is establishing a nationwide network of authorized online retailers, each of which must meet the company's stringent requirements for quality, brand representation and customer service. To ensure that retailers and distributors follow all of Toshiba's guidelines for e-commerce, Toshiba will maintain a trained staff to monitor internet activities. In the initial stages of its e-commerce roll-out, Toshiba will choose its online retailers from the ranks of its traditional brick-and-mortar dealers. In the future, the company will pursue a limited expansion into Internet-only retailing. (Toshiba will carefully select which products will be authorized for sale over the Internet.) The company's exclusively distributed Cinema Series line will not be made available for Internet retailing. In addition, Toshiba distributors are not authorized to sell Toshiba product to any retailer for Internet merchandising. Toshiba America Consumer Products, Inc. is an independent operating company, owned by Toshiba America, Inc., a subsidiary of Toshiba Corporation, a world leader in high technology products with subsidiaries worldwide.