e-Tailers have gained considerable popularity among the buyers and it has has affected 35-45 % of 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 market place. These associations are also inviting other IT associations from different parts of India in an assembly to be held on August 2, 2014, in New Delhi.
On June 26, the five IT associations in a meeting have also agreed to form an ICT market place.
Highlighting the problems faced by traditional channel from e-tailers, Saket Kapur, General Secretary, PCAIT, said that due to deep discounting from e-tailers, the conventional channel is badly affected. According to estimates, 35-45% of the channel business is being taken away by e-tailers, who many-a-times 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 market place 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 market place for customers to provide a level playing field for all participants in the channel eco system.
The process of how market place 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 market place, which will be governed by a coordinating committee.
