e-Tailers may face tough time ahead

e-Tailers have gained considerable popularity among buyers which is affecting 35 to 45 per cent of the Channel business in IT. To combat e-tailers, IT associations like PCAIT, ADCTA, CMDA-Delhi, COMPASS and CIITA have come forward to form an ICT marketplace. These associations are also inviting other IT associations from different parts of India to an assembly scheduled to be held on August 2, 2014, in New Delhi. 

Highlighting the problems faced by traditional channels from e-tailers, Saket Kapur, General Secretary, PCAIT, said that deep discounting from e-tailers, the conventional channel is badly affected. According to estimates, 35-45 per cent of the channel business is being taken away by e-tailers, who, many a time, offer unrealistic prices which are below the cost prices. Due to this, many retailers have changed businesses and some others are even buying products from online to sell to customers.

B. Hari, President, CIITA and President, COMPASS commented that while it is true that e-commerce cannot be stopped, channels have to adapt and blend into the same. They have agreed that an ICT marketplace must be formed, where they could leverage the unity and strength of IT associations across the country for collective bargaining to get good prices. The best way forward is to create a trusted marketplace for customers to provide a level-playing field for all participants in the channel ecosystem.

The process of how marketplace will be formed will be decided in the conclave to be organized on August 2 and it was also informed that each member of the participating associations will be a stakeholder in the marketplace, which will be governed by a coordinating committee.