Most key resellers and some distributors have acknowledged that they no longer feel like valued partners. With pressure mounting to push sales and show higher sales figures, they believe they are the object of far too many demands and very little open and honest communication from vendors.
p____p Vendors these days are in a rush to seize the market share from competitors as well as customer mind-share, and while at it, they simply assume that the entire channel network is all the same. These manufacturers offer look-alike plans and solutions without taking into account each distributor’s individuality in terms of size, strategic objectives, core competencies, etc. It’s not surprising that the channel is left to wonder whether they are partners or adversaries.
p____p To add to channel woes, customers have become more wary in their dealings. Attempting to squeeze cost out of every operation to some extent, they too may be responsible for the increased pressure on channel-manufacturer relationships. Markets and customers are continuously evolving. Distributors must become an integral part of the vendor’s production and marketing process.
p____p Despite some self-assertive vendors who wish to bypass the distribution channel, distributors matter – and will always matter. No IT manufacturer in India can handle business fundamentals the way the channel does. And on a daily basis, manufacturers are ill-equipped to cope with the unending stream of immediate crises. That remains the channels’ core strength.
p____p Moreover, the channel is the key to really understanding a customer’s needs and idiosyncrasies, and reporting on new uses of products and technology. Having a finger on the pulse of the market, they know what is under-development and can pass on important communication about market threats or opportunities.
p____p The question on the minds of vendors today seems to be: “What has been your contribution in the growth of our market share?’ It is the value that distributors offer to manufacturers and key partners that describes just how indispensable the channel is to a vendor’s success.