Siliguri partners losing sales doubly

Up country markets like Siliguri is being increasingly gulfed by the online retailers. This is creating havoc by the IT channel partners of the region. The trend started around 2years back and it has reached its maximum now. The partners are distressed with the fact of losing sale everyday as the customers seem to get the same product at a lesser price from the World Wide Web. Online sales agencies captured the market share by a minimum of 25% ( approx). Speaking to a few partners in the region who didn't want to reveal their identity said that there has been a decrease of sales revenues by almost 50%.
The online agencies are not the sole reasons for the loss of local IT business in the area. It has been perceived that a number of established channel partners and distributors with presence in Kolkata and other such locations are trying to have their footprints imprinted in Siliguri as well. Many of them are on an expansion mode and are trying to open distribution outlets at multiple locations.
On deeper analysis, the partners in the area realized that boom of online agencies and big distributors opening their outlets at up country markets are infact interrelated.
Sources pointed to the fact that with higher volume purchase of products, the discount schemes available from the OEMs are also higher. This helps the online distributors who purchase products in bulk to sell them to end users at a relatively lower rate.
The big distributors are applying the same logic. By opening multiple distribution outlets, they are expanding their market reach and hence getting a chance to give bulk orders. This is making them eligible for receiving the same discount schemes as that of the online retailers.
Both these factors are acting as dampening agents for the local distributors, dealers and channel partners of Siliguri. On asking them as to whether they can also opt for selling their products via an online retail store, the spokesperson replied that lack of awareness in Siliguri is what is making this possibility out of reach from most partners. "Although I can understand the use of the web and its potential, others in the market are not so upbeat with the online store concept and are still hesitant about its consequences," said a reliable spokesperson.
The channel partners are trying their best to request the OEMs to set their policies in a manner that it does not hamper the business of the local distributors and channel partners." At this time, only the national distributors and OEMs can set things right. It is them who have to put guidelines and restrictions so that sales revenues of upcountry markets do not get hampered," adds the same spokesperson.