Gangtok feeds Siliguri market

Over the years, north Bengal has emerged as the second biggest market in the east followed closely by Guwahati.

The growth story of Siliguri, however comes not just from the retail and solutions success in the domestic market catering to the regional needs, but it acts as a primary supply and distribution point for Nepal, Bhutan, north-east trade route and Gangtok.

The capital of Sikkim, Gangtok is one of the most prominent markets in the eastern belt of India with a high potential in terms of overall market growth. Already dominated by focus on government buying and projects across the state in an attempt by the Sikkim government's initiatives in e-governance, the channel community is predominantly dependent on the government sector besides interest in army and tourism.

Bikas Sarda of Shree Shakti Enterprises stated "In Sikkim, the market is small, although enough purchases are being made by the state government and the army. Here, primarily, the STCS issues tenders and notices for the government projects. On an average monthly basis, the government makes total monthly purchases of about 2 crore".

However, being a small market in the hilly area dependent on supplies from Siliguri, the market is left at the mercy of the latter. Any disruption in Siliguri brings Gangtok to a standstill.

Stating Gangtok's dependency on Siliguri, Sandip Maiya of Digital Equipment and Communication stated, "The IT market here is principally dependent on Siliguri. The state government accounts for the majority of the consumer segment and foraying into government supplies is lucrative. However, all the supplies here are dependent on Siliguri".

Also, with no presence of national distributors in the region, the market rhythm is fairly different from the other markets in north Bengal or Assam making Gangtok heavily dependent on Siliguri.

Way back in 2009, Rashi Peripherals used to have an office in Gangtok, but it was closed down. The reasons alleged by dealers in Gangtok for the situation were low sales volume and pressure from Siliguri sub-distributors and dealers. Clearly, it is channel partners from Siliguri who control 'the trade' in Sikkim.

However, dealers reported that the dependency on Siliguri is not deterring the growth factors in the state. Speaking on the issue, Maiya concluded, "Gangtok's dependency on Siliguri for procurement and supplies is not deterring it's growth in any ways. Also, since Siliguri is accessible at an ease, the absence of national distributors is also not affecting the market".

Even then, the market has performed significantly well than it's counterparts in the hills.

Also, backed by good credit policies and the rising need for gaming devices and peripherals in the end-user segment, the market is heading towards evolving into the primary market of the hills before Cooch Bihar, the Bengal-Assam border.

To explore the market further, one needs to understand the tempo of the hills. There are vast opportunities lying untouched in areas still uncovered for the channels and increasing product range is urgently needed here.