Nalin R Patel
President
AIT
The rise of the online and LFR stores has spelt a doom for traditional Channel business. Bangaluru's AIT (Association for Information Technology)is taking up the cudgels for the Channel to look into the matter and rescue it from perishing further by taking corrective actions with distributors and vendors
With the growing popularity of online store as a shopping hub, there has been a change in perception in the buying habits of an otherwise fickle-minded Indian consumer who would not buy a product without having a ‘touch n feel’ experience of it. But times have changed and so does an Indian customer. The coming up of online and Large format Retail (LFR) stores have marked a new ‘era’for Indian gadget shoppers.
While it is a boon to a customeron one hand, on the other this rise spells a big threat for the Channel Partner community that has been hit really hard by this sudden spurt in these new medium. The multitude of options being offered to a customer and the disparity in the prices raise an alarm and the Channel is faced with cut-throat competition.
“This has become a burning issue for us. We at AIT feel that channel partners who have promoted products of Vendors for more than 20 -25 years are finding it difficult to survive in the market under current circumstances. We have been getting numerous complaints from the members that they have started losing sales against online and LFR,” says Nalin R Patel, President – AIT.
AIT therefore has decided to take up this matter in the following manner at the Meets that ensued -
• Firstly in the Fellowship Meet that saw the participation from around AIT members, a brain storming session was held with the fellow members that tried to dig into the matter ofthe exact problem the fraternity is facing and what needs to be done to ease the situation. Some members opined that they should boycott the selling of products with immediate effect which are offered online if the vendor doesn’t support for a level playing field and fail to direct online shopping sites and LFRs to maintain an MOP. This will ensure sustenance and survival for everyone.It was also decided that a meeting with National distributors and wholesalers should be convened very soon to find out their role in deciding the pricing.
• In the Fellowship Meet that took place last month,several NDs and Wholesalers were invited and had a brain storming session together wherein they said that as far as the price of a commodity is concerned they don’t have any role and that only vendors are supporting them on the price front. In this Meet, NDs like Ingram Micro, Rashi Peripherals, Iris Computers, Compuage, Neoteric, WP Holdings, Savex, Global Infonet, Avnet, Digilife and many other Regional/Sub Distributors participated to give their consent.
• AIT decided have a next fellowship meet with vendors on 12th of November but it could not materialize as most of them have kept their sales review meetings on the 2nd week of the month due to Diwali holidays. They all requested their participation at a next convenient date. Hence now this meeting has been postponed for the month of December.
“We are planning to have discussion with vendors as to why there is so much price disparity on the same product offered by channel, the online store and LFRs. We want to convey them that they should give a directive to online and LFR to maintain MOP so that we all channel, online, LFR and vendors can survive together and grow together,” Nalin shares.
As payments are not coming in time and to avoid partners landing into any kind of financial trouble, members are requested to maintain minimum stock so that they are not stuck with a huge inventory.
AIT also wishes to take up this matter jointly with theentire South Indian State Association (SIITA) with the participation from all four associations. “We are required to address this issue in the interest of our Fraternity. I request all State Presidents and their Executive Committee membersto come out with a joint strategy and take up this matter under the umbrella of SIITA for further action,” sums up Nalin.
samrita@varindia.com
