MUMBAI, INDIA: The South Gujarat Information Technology Association (SITA) has decided to boycott companies with large format stores centric policies.

Chetan Desai, President, SITA said, “There are some companies who are closely working with LFRs and changing their policies to get better business from LFRs. We have decided to boycott those companies with LFR-centric policies. We have sent mails to vendors like HP and other major brands who are operating in India and have requested them to frame a policy to protect the channel's interest and theirs as well.”

He added that partners in India have been working hard to create a brand recall for vendors even in instances where there was no infrastructure available with them. Therefore, they have the right to expect healthy competition from LFRs but not with the vendors siding with one or the other.

SITA members reportedly tried to negotiate with representatives from LFRs to resolve the issue of favoritism in business policies but it was not successful. Desai said, “LFRs are selling brands like HP and Compaq at less than the landing price of the products and are also bundling anti-virus, head phones and memory cards with the product, which is actually not provided by the vendor companies. They can do this because they enjoy the benefit of economies of scale which dealers can't compete with.”

SITA has also solicited support from other associations in the western region to participate in this vendor boycott movement. And it has got favorable response from some of them. HP and Compaq Gandhinagar IT Association (GITA) said that his association supported this action by SITA. He said, “It’s a valid reason to fight against the vendor policies towards LFRs. We will definitely support SITA members as it directly concerns the channel business and its survival.”

Rajiv Gupta, President, Amravati Computer Dealers Association (ACDA) also agreed that partners in Maharashtra are beginning to feel insecure with the emergence of LFRs. Gupta said, “We will support SITA's decision to boycott vendors who have favorable policies exclusively for LFRs.” He however added that ACDA had not received a direct mail from SITA asking for its support and is awaiting the same.

Rajesh Dhanani, VP, Bhavnagar IT Association (BITA) too welcomed SITA's decision and expressed the desire to support it. “The LFR-centric policies are affecting our business. In Bhavnagar large retails are selling branded laptops like HCL and Compaq, at prices lesser than those quoted by dealers. There is a price difference of Rs. 1,500, which is not a negligible gap. They are also offering USB tool kits worth Rs. 2,500,” added Dhanani. He added that an official confirmation of BITA's approval would be sent to SITA after a talk with the executive council members.

SITA has also expressed the desire to amalgamate all IT associations across India to combat against the LFR policies. Its members will gather in Federation of IT Association Gujarat (FITAG), which is a state-level association in Gujarat and decide how to take up this issue further.