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IT Channel Community Uniting to Launch Online ICT Marketplace

IT Association

To save the interest of the channel community from the growing competition by the online trading, the channel community associations pan India unites to create unique ‘online ICT Marketplace’ for fair businesses.

To discuss the future course of action on the growing online trading issue, channel associations from North, South, East and West gathered at one platform to find a way out to fight the unfair business practice. Progressive Channel Association of Information Technology (PCAIT) organized an all India Channel Conclave where the President of each association showcased his presentation on how they are losing the business at the hands of online trading platforms.

To counter the threat to the welfare of channel community from the online e-retail industry, the associations are creating new opportunities for the channel retailers to flourish in the market. More than 80 channel partners from Pan India participated in the conference to promote a common objective of setting up of an online marketplace, owned by channel themselves.

Addressing the channel community, Shyam Modi, Chairman, ADCTA, says, “After seeing the trend and challenges faced by the online portals, we are working on establishing a new platform which will help our community to fight the challenges and survive in the industry.”

The portal will be a first of its kind in India that will offer product based services across the length and breadth of the country owing to the strong channel network of PCAIT. Additionally, it will cater to the demands of the online customer who, due to a lack of proper service platform, returns the product owing to defects or unsatisfactory performance.

Alok Gupta, President, PCAIT, comments, “Over the years there has been a tremendous growth in the number of online retailers operating in India. However, there is an urgent need to pay attention to the practices deployed by such portals when it comes to procurement and selling of products at rates which are way below the market rates. Also, providing online service for the products is a key issue which has been lacking till now. The conclave is an attempt to address this disparity and make the market a level playing field for ICT channel partners by providing them a platform to operate their business, online in order to cater to the fast growing segment.”

First presentation was shown by B.Hari, President, CIITA, Eastern India highlighted the solution to a problem which is very large for the channel eco-system. “The challenge of e-commerce appears like Aamir Khan as people are ahead of technology that we have. According to our estimate mobile phones takes 40% of market share, IT hardware takes 21% and rest 40% is covered by all other electronic items. Retail landscape is still unorganized and is very big in India now. From online market space we have not even taken 1% market share. Out of 204 million mobile phones, only 4 million mobiles have been sold online. Online shopping in 2013 was only Rs.10,000 crore out of which Rs.5400 crore was for mobile market, cameras, IT products and balance for other products. We have seen a significant jump in online market to Rs.20,000 this year followed by Rs.45,000 crore in next 2-3 years,” informs B. Hari.

Worried of losing the business to the tune of Rs.15,000 crore in next two years, Hari cautions channel community. To combat the e-commerce challenge, he suggests, “We should control vendors to not to get into unfair business practice. For B2b buying let us have an exchange and consumer side we should address by bringing in credibility and transparency and get the best channels to manage this. This way we will be on the gaining side. Let this online platform function like a stock exchange. This online market place will going to benefit the small retailers as well.”

Highlighting the importance of online market place for ICT channel, Champak Gurjar, President FITAM and Chairman TAIT feels, “We have to unite as an industry and move ahead. We have to find a way to win the game. Our own partners are selling the products to the online portals and buying from them. We should discourage this and let them convince to get united with us. This is the opportunity to leverage and liaison with government officials to discourage unethical practice.”

Looking forward for ethical practice to address online issue Karthikeyan, President, SIITA shares, “Vendors should play in an ethical way to take this endeavour forward. Confed-ITA had conducted the vendor meeting for online agenda and requested vendors to maintain price between dealer and online community.”

James Joseph, President, AKDITA, “We should represent our views strongly to vendors and ensure that small retailers should get price at par. We should also ensure that government should levies taxes at par and this way only we can proceed.”

Saket Kapur, General Secretary PCAIT (North) opined “ ICT Channel Conclave is a step towards identifying and addressing the issues being faced by the channel retailers from the online platforms. Being true to the theme of our conclave which was- ‘Growth with Unity’ we understand that online is an important mode of doing business, hence we encourage our members to take their business online and explore new growth avenues.”

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