Neighboring states are eating business: Goa IT dealers

Located in the Konkan region of India, Goa is the smallest state in the country. The city is bounded by the state of Maharashtra in the North, and Karnataka in the East and South, while the Arabian Sea forms its western coast.

The IT Market scenario in Goa is bad at present with not so worthy business happening in the city. The local dealers in Goa believe that their whole business is taken over by all big city dealers around their state.

A local dealer of Goa, Khush talking to The DQ Week said, “At present the IT business in the state is not good as it used to be earlier. The marketing strategy may be somewhere lacks as per me here. We just sell our products for the sack of selling only. We sell them at cheap prices; sometimes making no profit at all, and we have to do it to maintain our name in the market.”

“Everyone is shifting to services from sales in order to make money, but in sales also there is no margin earned nowadays as people compare the prices of spare parts and order them online. Sometimes we do selling at same prices also,” Khush of Mouze Computers added further.

Raghunath Kapse of Frontline Computer Services says, “Goa market is getting affected by neighboring big states like Mumbai, Pune, and Bangalore etc. Most of the business opportunities are taken over by these. The prices are compared with these states; these big states have orders in good volume which directly results in less price fixation as compared to our prices in small states like Goa. The volume plays an important role, they have better prices than us, big cities produce and buy better volume of goods thus have better prices than us, this is also an issue arising in the market of Goa.”

Raghunath added, “Frequency of transportation is also a problem in Goa compared to neighboring states. This problem is faced specially during delivery of items.”

The IT market in Goa is taken over by Mumbai, Pune and Bangalore’s IT market as per the partners in Goa.

It’s going to be a difficult phase for some time, while talking to local dealers, a common challenge has been observed that this industry is facing from the online e-commerce portals too.

There has been an increase in people purchasing from online portals. This has now begun to affect the partners in this region. The local dealers are all trying to figure out ways to compete in this scenario and provide better deals to customers.

 

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