Change is the need of the hour

DQW Bureau
New Update


The channel community as a whole has remained in its cocoon for far too long

now. It's high time that they came out of their shell and take a look at the

bright new world with a fresh vision. And they will certainly realize that the

world has changed beyond recognition, while they had kept their blinkers on.

The fresh vision is required on the part of the channel community for several

reasons. Perhaps the most important reason would be the way they conduct their

business, which is totally outdated in today's context.

An overwhelming majority of them are still stuck on the traditional way of

doing business-trading. And what kind of margins do they make by doing that?

Rs 50 if they are lucky. Otherwise, it is always a couple of rupees.


But if the kind of margin they are able to make is negligible, why do they

still stick to it? Nobody has an answer-publicly. Privately, a lot of them

admit that they won't mind getting out of this business provided they get a

good alternative.

This business on such ridiculously low margins is happening mainly because of

the rampant undercutting, which channels partners indulge in. And they do that

because there are far too many players in the market chasing the same set of

customers. Here, vendors have to take the major part of the blame, as they are

the ones who tend to indulge an ever-increasing number of partners without

bothering about the consequences.

So if the community is making almost nothing from trading, why don't they

try and go up the value chain. That would involve a total reorientation, as that

would mean offering total solutions rather than just boxes, which is the norm

currently. And to do that, they will have retrained themselves and also their

employees. Also, they would have to curb the tendency to sell at any cost.

Rather, their mantra should be focus on returns then on selling.

On our part, The DQ Week with its three editions has tried to fulfill the

need for reliable, topical and regional information of market developments in

the channels community. Over the last eight years, we have tried to provide news

and information of direct business relevance to the entire community.

However, in the majority of places, we have seen that the channel community

does not speak in one voice. Even if an association exists, it is almost

irrelevant. So, there is hardly any platform where the issues of the community

can be taken up and resolved. It is extremely important that the channel

community initiate a dialogue amongst themselves and see what are the major

areas of concern and issues which need to be taken up with the vendors or

distributors or even various state government and local authorities.