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DQ Week
had carried a report on TAIT in Mumbai and SNEHAM in Chennai,
expressing their displeasure on the new distribution policy of HP PSG
(Consumer Division). To give a little gist of the HP policy, the new
policy of HP
the PSG division will implement a new way of distribution, wherein it
will substantially reduce its business with the national distributors
and will appoint more regional players to drive its business.
seems that even
is not mum about the entire issue and Sunil Dutt,
VP and GM-PSG group, HP has responded to the proposed ban in a very
satirical yet diplomatic manner. Elucidating on the ban Dutt said,
“The new model is all about the price stability, high levels of
service to retailers, single point of contact to each retailer for
any issues on price, price drop, service issues or any other business
issues. As per the accusation made by TAIT that we have completely
ignored the IT partners is not true. In fact out of four tier-2
partners in Mumbai, two of them are IT players (Hardtrack and
Citifone). Also the new policy will ensure effective distribution and
uniform rates for all partners at tier-3 retail level.”
also mentioned that the process of selecting the partners have been
transparent and the tier-1 partners like Ingram, Redington, Savex and
Rashi continue to do the business with them. He also said that it is
a selective discrimination of information and it is not possible for
him to personally meet every partner, thus they restricted themselves
to the evaluation procedure. When asked about the impact of the ban
on products Dutt said, “The sales are growing across the country
and partners are selling HP policy without any complaints. While
there are difference in the opinions of TAIT and few partners we are
on talk with them and will definitely come out with a solution
because they are equally important to us”.
about the loyalty of the partners towards HP, Dutt remarked, “ The
selection criteria basically involves the knowledge of the market,
market coverage capability, good distribution experience and
capability. And out of 160 partners 30 are from non IT background.
Thinking from the futuristic plans, we cannot be restricted to one
approach but we have to be inclusive. Also, if we have partner
willing to sell only HP products, it's an icing on the cake and who
would refuse it. I will be happy if the partners want to sell HP
products and will be more than keen on their association.” Talking
about the SNEHAM ban in Chennai, Dutt said, “We live in a
democratic country and everyone has their own choice to do business
from anywhere.”
on HP's response, Ketan Patel, President, TAIT said, “We are
equally trying to sort out the issues with HP and are in talk with
them. And as far as the growth in HP sales is considered, I agree
that the past two-three months have been good but the BAN will show
the results in the timeline.”