AIT to take online market issue to vendors

AIT is all set to talk to vendors directly in the month of December about the IT online market and the price disparity which has drastically affected offline stores. 

The meeting was supposed to be held on 12th November. As reported by The DQ Week earlier various System Integrators (SI), Sub-Distributors and Resellers of AIT participated in a meeting that concluded last month, and called for a unified solution. But due to Diwali holidays most of the vendors could not be contacted.
After AIT's 16th AGM meeting on 1st December it will gear up to find solution to this long standing issue.

AIT has already made a list of vendors whom it intends to speak in the meeting. The list includes names like Lenovo, Dell, Sony, Nikon, HP, Cannon, and Epson. Among these vendors Logitech and Sony have already agreed to participate in the meeting.

The advent of online market has gradually pushed offline IT business at back seat. The selling price offered on IT goods on online sites is considerably low compared to what IT shops offer. This price disparity has left IT resellers and distributors asking one question-Why vendor are encouraging this price disparity? Nalin Patel, president, AIT said, "We have already discussed the matter with RDs and NDs, but they themselves are at loss regarding this."

The RDs and NDs claim that they don't have any hand in setting up the selling price offered by online sites.

The onslaught of online IT market continues to plague the IT resellers as they are devising new business strategies to recover from losses. Muthu Krishna of Micro Media Solution complains, "I am forced to sell my products at the price of what online shops offer. So my selling price is less than my cost price". He says that on an average the price offered by online sites is around two to three thousand rupees less than what he has to offer. Muthu Krishna says, "I am planning to leave IT distributorship and move to service completely".

Deepak of Laptop Shop says, "Laptop market is growing at snail's pace. On top of that online stores have brought our sales drastically down". Laptop shop will soon make its online presence next month and try to reap maximum sales from their online site. Though he admits, "We cannot compete with the likes of online retail stores when it comes to price". He fears that if such price disparity continues many resellers will have no other option but to close shop.