FAIITA implements the 'One Nation One Customer price' strategy

FAAITA, the registered national umbrella body over all state IT federations/ associations, is pursuing a ‘One Nation One Customer perceivable price’ strategy and thereby has hold a meeting with brand owners in Mumbai on 21st November, 2018.

In its statement FAIITA said that as an owner of a brand and its engagement with contractually committed B&M business partners, it is its prime responsibility to provide positive and healthy business environment to your business partners.

After lengthy discussions with every FAIITA members having substantial business stakes in retail, it was unanimously felt that there is a dire need to create and maintain level playing field across GTMs’ to ensure market hygiene for business sustenance & growth of B&M business partners. Furthermore the following points were discussed and agreed to be implemented -

* There is a market need of one Nation and nearly one Price of a product range to obviate customer confusion on correct time, price and place to buy.

* Contractually B&M partners should be able to match visibly most competitive price of products. Moreover the brand owner/OEM ensure seamless earning of a minimum sustenance business margin of 5% across entire product range.

* During Sales Promotion period at online portals (or any other such promotional disruptive price fair), there will be a similar sale at B&M partners with similar pricing fully supported by Brand Owners, ensuring a minimum 5% Margin across entire product range.

* Brand Owners/OEMs shall inform all registered B&M partners at least two weeks in advance; about likelihood of Sales Promotion activity by OLS, and advise partners to inform all footfall customers about it and stock products that will sell during OLS sales, to be in sync with online.

* The brand owner shall also endeavour to augment the business in the offline channels during such discount periods proportionately to the surge in online sales of its products and provide special visibility through various marketing campaigns as per respective brand promotion strategies.

* During sale period, products in stock of B&M partners of nearly similar specifications and configurations as being promoted by OLS will be treated as same and Partners shall be allowed to earn a minimum 5% sustenance margin on sale of these products during promotional period.

* A partner agreed Price differential matrix of Product Configuration/Specifications will be submitted by Brand Owner for arriving at stack price of various configurations of products, keeping in mind a minimum of 5% sustenance margin.

* All the price parity compensatory claims to be settled by Brand Owners within one week.

* Targets in post disruptive periods to all B&M partners shall be assigned on basis the actual sell out achieved by B&M partners and not construed to push inventory to them.

* In the event of termination of partner agreement, it shall be responsibility of brand owner to clear within reasonable time, the unsold inventories of the terminated partner.

* During price disruption that happens during festive sale, FAIITA members are piled up with huge stocks for which viable solution is required from vendors so that there loses are covered and there stocks are liquidated.

* 12. As a matter of fact, all Members are liable to pay overdue interest on all outstanding to Distributors consequently ad idem interest is justifiably payable by you to them towards overdue incentives/backends claimed.

After the meeting, Asus has expressed its inability to control predatory pricing at e-commerce platforms, maintain market hygiene and implement ‘one nation one customer price’. The President and office bearers of FAIITA have unanimously recommended to suspend any fresh purchases of any ASUS Notebook computers till further notice.