Is market looking up and will
2003 put smile back on the resellers’ face?
This is a million-dollar
question raised in everyone’s mind and certainly it seems to be `Yes’, if
you had to believe a section of resellers, distributors and vendors from the
local IT market.
For the last few weeks, the
local IT market is running with high spirits that the sales had picked up and
the dark side is over. According to the market sources, the sales has started
showing signs of improvement from the last week of December and January is sure
a better period for them in business. However, the long festival holidays
(Christmas and Pongal) had made a section of traders to adopt wait-and-watch
policy before they could say something is certain.
Meanwhile, there are varied
reports that which segment is driving the sales, presently. While some say it is
the home segment pushing the sales, few claim the corporate orders are driving
the growth. Much to the surprise, the government tenders are also opening up and
giving a new lease of life for the resellers.
Many are confident that 2003
is sure to be a good year for them and the first quarter (present JFM) of the
calendar year is any indication for this.
We, the Dqweek MADRAS,
contacted a section of resellers, distributors and vendors to get their opinion
and report on this. Here are the excerpts:
“It is true that the sales
has picked up from the last week of December and going by our records, the sales
is improving week-after-week. We see a lot of end-customers walking-in to our
shop and keep the sales flow,” said Shantilal, Proprietor, Devraj Computers.
For Microtek also, it is a
better time in business. The company has recorded some positive growth during
this period when compared to the previous terms. “Although, the festivals
lined up during this period, we recorded a good sales and home segment helped us
to push the figures,” said Sandeep Mathur, Branch Manager, Microtek
International Pvt Ltd. Microtek hopes a better period with government and
corporate segments opening up. “The forth coming union budget should lower the
tax structures of components going into the production of LCD monitors and make
the product more affordable for the consumers,” he opined.
“I would wish to wait for
few more weeks before I could say something on the market improvement. It is too
early to comment now,” said Jitendra Kulkarni, CEO of Redington India.
According to V Sakthivel,
Business Manager of Nebula Technologies Pvt Ltd, “I agree that the sales has
improved. But, it is only for the resellers and nothing is happening at the
distributors’ end. Resellers are clearing up whatever stocks they had with
them and not much of fresh orders placed with the distributors.”
Accel, a leading system
integrator, has also registered some positive growth and, government and
corporate orders are helping them to push the numbers. “However, we have to
wait-and-watch the trend and lots of hope is pinned on the new year,” said
Maqbool Hassan, General Manager, Accel ICIM Systems & Services Limited.
“January is a good month for
us and we have bagged some government orders worth several lakh,” said S
Samkumar, General Manager of Elite Peripherals Limited.
“I don’t see any
improvement in sales and it is business as usual,” said I Sadiq Batcha,
Director, SSS Systems Pvt Ltd. Opining the same, Shivakumar, Managing Director
of USAM, questions, “How sales is happening during the peak festival period
when offices and establishments were closed. Moreover, end-users (individuals)
would also had been busy celebrating the festivals.”
“Compared to October and
November, December and January seem to be a better period. But, there is nothing
to claim that the sales has improved and back on the track,” said A Rakesh
Jain, Director, Supreme Computers.
“The market might have
picked up for the resellers. But, we (distributor) are yet to see the impact.
Meanwhile, the shortage of certain products and price hike in some goods had
pushed the sales down,” said Subramanian Kankethi, Branch Manager, SES
“The market has improved
slightly and coming months should be a good period for the resellers,” said
Anand Mootha, Proprietor, ATI Inc.
According to Nitesh Bhandari,
Partner, Texonic Instruments, “I hope the worst is over and bright days are
ahead in business. Meanwhile, the introduction of value added tax (VAT) should
bring the price of products down and help the growth of business.”