JALANDHAR, INDIA:The need for enhanced communication and a proper system at the distributors' end to look into issues pertaining to dead on arrival (DoA), service and credit policies, are some of the issues the channel in Jalandhar pointed out during the IT Panchayat held in the region recently.
The event, held in association with The DQ Week and DQ Channels, saw participation of more than 65 channel partners and distributors—Ingram Micro, Redington and Compuage Infocom.
While the distributors gave an overview of the market conditions at the beginning of the event, the dealer representatives threw light on the issues affecting the IT trade, including that of cartel formation, uniform credit policy, DoA, pricing issues and unavailability of service centers.
Sharing his view on the same, Rupesh Sharma, General Secretary, Jalandhar Computer Dealers Association (JCDA) mentioned, “The market conditions are increasingly getting difficult and the price differences at the distributors end is certainly not helping the trade. For any given product, there is a huge price difference at the distributors' end and as a result the dealer community has lost their confidence in the trade. For many of HP products, Redington offers better pricing than Rashi Peripherals and there seems to be a lot of favoritism from the vendor's end as well.”
Reacting to Sharma's comment, Sanjeev Kumar Vyas, Area Sales Manager, Redington India stated, “The market has not seen the kind of growth that existed two to three years ago, and dollar fluctuation and price rise has further created pressure on the channel. The price of a product depends upon the distributors ability to strike a better deal from the vendor and hence nothing much can be done about it.”
On the other hand, Sunpreet Singh of Touch Automation elaborated that the channel is also facing problems when it comes to delivery of the product once it is picked from the distributor.
“There is a lot of delay in delivering a product and this shakes the confidence of our customers in us. Another issue that is affecting us a lot is the fact that distributors and even vendors indulge in unethical practices, whereby they get directly in touch with our customers and quote a lesser price to them. This has a negative impact, both on our business and faith in the system.”
Reacting to Singh's comment, Ramesh Verma, Branch Manager, Compuage Infocom opined, “This disturbs the whole IT market and hence there is a need for the distributors and the dealers to communicate the same to the vendor and work in co-ordination.”
Ravinder Bhumla, President, JCDA on the other hand raised concerns pertaining to delay in response from the distributors and lack of service center for replacement of products. Bhumla added, “All the distributors' offices in Jalandhar work like government office. There is just too much of paper work involved, and to add to it, there is delay in the execution of the orders. In addition, distributors carry many such products in their warehouses for which there are no proper service mechanism in place. This does not give us enough confidence to sell the product.”
Taking note of the above matter, Manik Talwar, Senior Associate—Sales, Ingram Micro mentioned, “There is a need to streamline the system and policies, and all the distributors need to look into the issue.”
In addition, issues related to extending credit period and cartel formation were also raised by the dealers. Clarifying on the same, distis stated that they will look into the matter and ensure better policies for smooth operation.
The event saw active participation from the channel community. The panelists at the event included, Rupesh Sharma, General Secretary, JCDA; Sunpreet Singh of Touch Automation and Ravinder Bhumla, President, JCDA representing the dealer community. On the other hand, the distributors side was represented by Redington, Ingram Micro and Compuage Infocom.
The event was sponsored by Gigabyte, Emerson Network Power and Symantec.