KITVA fails to resolve price undercutting issue

Anjali Choudhary New Delhi, Sep 21

The Kashmir Information Technology Vendors Association's (KITVA) efforts to
put a check on price undercutting phenomenon in the valley has proved to be a
fiasco due to the lack of cooperation from vendors. In the wake of intense price
disparity exhibited by dealers in selling technology products, KITVA had taken
the matter to vendor companies for their intervention, but the issue was
partially addressed since not many vendor companies took genuine interest in
resolving the matter.

Feroz Matto, President, KITVA said, “Price undercutting is perhaps one of
the most appalling attributes of any business. Of late price irregularity
phenomenon has taken the IT business into its grip, which has become a great
cause of concern for every dealer who consciously or unconsciously indulges in
this practice. As an IT channel association we have tried to uproot this problem
from the market and in that we required support from principles. In fact we have
approached HP, Epson and other vendors to resolve the price undercutting issue
efficiently but none of them, barring Epson, backed us.” Adding to this Imtiaz
Ali, Executive Member, KITVA pointed out, “Not only principle companies, on
behalf of the association we have approached local dealer partners also to
amicably resolve the matter, but partners who make good sales only on pricing
factor refused to liaison with us. On association level we tried roping in HP to
convince dealers to deter from irrational pricing but the vendor gave no
positive assistance.” Ali informed that the local representative of HP did not
take interest in KITVA efforts of eradicating uneven pricing.

While on the other hand Epson has openly supported KITVA in its efforts.
Commenting on Epson's role in resolving price undercutting issue of Srinagar
dealers, RV Ram Prasad, DGM-North and West India, Epson said, “Epson India
is focusing aggressively on the northern region and we have recognized Jammu and
Kashmir as an important market for development of IT products. Our consistent
efforts and channels support has brought out better price discipline in the
market, which ensures that every dealer of the area gets an equal opportunity.
Sudhir Saini, our Area Sales Head has been regularly visiting the market and has
played a crucial role in galvanizing the needs of the market and ensured price
is maintained in a healthy condition.” Prasad further added, “We will try to
adhere to same principles in future as well to make partners comfortable working
with Epson.”

Mattoo informed that KITVA is constantly pursuing other vendors as well to
look into the price undercutting matter and anticipates optimistic remarks from
the companies in near future. It may be recalled that KITVA is the most recent
association formed in the valley in June this year. Currently 35 dealers of
Srinagar are affiliated to KITVA. Subsequent to its efforts to eliminate price
undercutting from Srinagar market KITVA is trying to convince the state
government of Jammu and Kashmir to liberalize its IT procurement processes and
is encouraging dealers of Srinagar to participate in government tenders.