MAIT puts conditional proposal to AIT on online market issue

By Subarna Talukder - 13 December, 2013

In a joint meeting over growing threat from online market MAIT has promised AIT Bengaluru to assess the impact of online market on channel partners' business in India. But MAIT will only looking into the issue if AIT and other association affiliate themselves under its banner.

In a meeting held on 22nd November, 2013, AIT discussed the rising loss that channel partners have succumbed to due to the price disparity with online stores. Following the discussion MAIT has offered to work out solutions to mitigate the problem posed by online market. AIT's newly elected president Satya Prasad told The DQ Week that in a first step towards tackling the issue MAIT has recommended to constitute a separate committee of IT associations across India.

He said, "One of the associations among us will be heading the committee." Anwar, executive director, MAIT, says, "Firstly, MAIT has to assess and weigh the consequences and impact of the issue on channel partners across India. We are not aware of the hassles that IT partners are facing from online market."

He says, after the committee is formed they will be investigating into the matter before chalking out any solution about the ongoing problem. Nevertheless, MAIT has put a condition before taking up the issue with AIT. Prasad says, "MAIT has first asked us to affiliate with them before they looks into the matter. Earlier MAIT was not being able to address our issues successfully so we terminated our affiliation".

So is AIT will affiliate with MAIT? To this Prasad replies, "AIT will be discussing the matter with other IT associations and channel partners and decide on this." Prasad sites a valid reason behind agreeing to MAIT's proposal, "It can take our pleas to the central government. We have good terms with the state government but when it comes to taxation only Delhi has its say in it." Online stores are exempted from VAT which automatically reduces IT products' price by 5%.

Toshy Mathews of AKITDA Ernakulam recalls "since MAIT is an association of IT manufacturers it is not under their knowledge about the issues and vagaries of channel partners. But certainly MAIT can take this issue to central government and perhaps find a solution to it."

 

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ashiq raidium Sat Dec 14 at 12:17 AM

THIS IS NOT A" FIX THE SOLUTION" ACTION BY MAIT. ONLINE SITES CANT BE BANNED OR MAKE ANY IMPOSE ON THEM BECAUSE END USERS RELIES ON IT FOR ALL BUYING PURCHASES ESPECIALLY DUE TO LOW PRICES AND OFFERS. ONLINE SHOP VENDORS INVEST HUGELY ON STOCKS EVEN AS MUCH ALL PARTNERS FROM A STATE SELLS ON A MONTH,IE LARGE STOCKS DIRECT FROM VENDOR OR FROM DISTRIBUTORS WITH CASH PURCHASE OR SOMETHING ELSE.HENCE THEY GETS SOME DISCOUNTS AND IT FINALLY PASSES TO THE END USER.THE SOURCE FOR ALL THESE PRODUCTS AR FROM THE SAME AGENCY/DISTRIBUTOR. BUT LARGE VOLUME PURCHASES AND PURCHASES MADE BY THE SMALL STORE RETAILERS MAKES THIS GAME IN "REAL PROBLEM".. THE ULTIMATE SOLUTION IS NOT TO BAN THESE ONLINE SHOPS OR MAKE ANY RESTRICTIONS ON THEM IS NOT A FAIR AND POSSIBLE SOLUTION. THE BEST OPTION IS 1.MAKE STRICT COUNTRYWIDE ONE PRICE SCHEME FOR MOP PRICES.MAKE COMPULSORY PRICING ON ALL SLABS AND TIER BILLING. 2.WHETHER ITS A SMALL DEALER OR VOLUME PURCHASER MAKE STRICT MOP AND NEVER ALLOW TO BILL UNDER THESE MOPS TO ANY ONE. 3.BY THESE METHODS RDS AND VOLUME PURCHASERS MARGINS WILL DIFFER BUT ALL CAN OPERATE UNDER ON MOP. 4.DISCOUNTS APPLY TO PRODUCTS WITH EOL OR SIMILAR PRODUCTS TO CLEAR THE INVENTORY. 5.THE VENDOR-ND-RD-STOCKIST-SI- RELATIONS SHOULD BE FULLY TRANSPARENT. 6.MANY VENDORS REPLY ON FEW SELECTED VENDORS AS THEIR PREFERRED VENDORS/BILLING PARTNERS AND THESE SIDE EFFECT ALSO MAKES BILLING PRICES ON DIFFERENT SCALE. AS THE WORLD GETS MORE TECHNOLOGY AND SOON WALK IN SHOPPING WILL BE JUST A PAST FAIRY TALE.

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