A High profile company’s plan is to empower the partner eco-system to sustain for the continuous growth, since they have been promoting their products from ages to reach out to the large geographies. On the other side few companies are working by approaching directly so this will brings the opportunity for the smaller and start-ups to fill the gap.
Because nothing is permanent, reason being when the corporates make the direct business with the end users, then one part is cost of product may be on the lower side at the beginning but in the longer time, the upgrade and introduction of the newer version would be faster. In longer term the end user will have to pay more. Indian channel partners are the backbone of the industry to grow. Various Channel Associations and partners have constantly been raising their voice against unfair business practices to save the partner ecosystem in India.
In a way Autodesk, an American MNC has dared to kill it’s channel after seeing a business of Rs.100 crore app. a year in India. Autodesk, the software providers for manufacturing, architecture, building, construction, media and entertainment industries has introduced a selling module by offering 20% lower price for online purchase, which raises a concern with all the channel partners in the country. This is not only demotivating the partners but also creating uncertainty among the channel partners. For example, For AutoCAD LT the partner RTP cost is Rs.17464 but the company is selling @ Rs.14318 all inclusive. This is an attempt by the company to try it’s luck to steadily shift to solely online buying.
“Autodesk is asking the channel to bear with the price reduction for 7 days every month to help them scale up their online sales to 50% of total sales. It is currently at 5%, which is highly unethical trade practice,” said an Autodesk partner who does not wish to be named, “with this it shows, Autodesk want to adopt the direct module by Killing its Channel Ecosystem in India.”
Can we call it as the predatory pricing offered by Autodesk? An expert says, Unlike, other e-commerce players including Amazon and Flipkart operating the module in India, Now, Autodesk has also appointed a reseller by the name Efulfilment Market Services Private Limited( EMSPL) a company based out of Mumbai appointed as the reseller through whom you as the purchaser will be purchasing the Products available on www.autodesk.in. The company website says. There has been strong protest in the country over the predatory pricing. It clearly shows that, Autodesk is doing the predatory pricing by offering directly in their website. An expert says, Autodesk is following the instructions from the headquarters to go on-line by killing the off-line market.
Champak Raj Gujjar, President, Federation of All India Information Technology Associations (FAIITA) said, “FAIITA will look into this again and we are keen to help our members to help against any unethical business practice. We will also stand and back our members to boycott Autodesk from the market. We have noticed this issue last year from Autodesk’s partners. We have raised this issue and asked Autodesk to look into it and they resolved this matter at their end. This time again, we will stand and fight against such Vendors to save our channel ecosystem”.
When asked about this issue Alok Sharma, Country Manager – India & SAARC- Channels said, “Autodesk products can be purchased both directly via the Autodesk store, and through authorized Autodesk resellers. Autodesk resellers are free to set their own prices. As such, reseller prices may vary. The retail price of product purchased from a reseller is determined by the customer’s selected reseller.”
FAIITA has written a letter to Autodesk regarding the online pricing issue with Channel partners. Earlier also Autodesk has created similar problem with the channel partners. Now, FAIITA is considering on boycotting Autodesk from the channel if Autodesk does not take immediate corrective measures. Ingram Micro, their distributor, has also stopped all distributions to oppose Autodesk’s move. FAIITA also said in the letter that any silence from Autodesk side will cost them boycott by their channel partners from India market.
Saket Kapur, General Secretary FAIITA says, “We at Federation of All India Information Technology Associations (FAIITA), a national umbrella Federation over all other IT Associations in the country, representing business interests of over 35000 pan India IT channel partners, have received a grieving escalation from Dealers of Autodesk products of unfair discounts exceeding 20% below ‘DTP’ (Dealer Transfer Price) across products, being offered on Autodesk’s website. It is important to mention that, such disproportionate and aggro discounting has spoilt the market hygiene and caused great injury to channel business.”
# Press IT Channel#