It has been an eventful fortnight for the reseller community. The channel first witnessed Mait�s subtle moves to try and downplay the efforts of the assembler community, followed by Aicta�s attempts to cancel out the first-tier disty structure.
p____p Channel assemblers continue to watch in horror as more and more “organized� players persist in its efforts to cut into the low-cost white-box business. With a covetous eye on white-box sales, almost all distributors have launched its respective branded PCs in answer to the local assembler�s white box. The assemblers fear that the wafer-thin margin business they once held on to will now slip into the hands of MNCs and disties.
p____p On the other hand, developments of a completely different kind have been unfolding, which are bound to queer the pitch for the channel. For Aicta�s members, it�s tempting to take the risk of eliminating the first tier as it means better margins.
p____p Commendable in its endeavor at achieving the publicity and exposure the above associations have been seeking, the general feedback from the channel has been that of discontent over the steps taken by these associations at trying to smother the existence of each other. Instead of addressing the concerns of the day, the associations are simply making matters worse.
p____p The Mait report evoked widespread support from the channel, raising hopes of a befitting yet mature solution emerging. In July, the channel in India witnessed the birth of a national body in the form of Nacit. Come November, we are still eagerly waiting for its first move.
p____p So we see all sorts of so-called all-India associations sprouting and pledging all kinds of promises to the gullible resellers. Decreasing margins, frictional relationships with vendors/disties, and increasing competition is helping neither the channel nor the organized players. Without Nacit�s quick intervention, numerous associations with varied agendas are bound to wreck the already fragile state of the IT channel industry.
p____p Creating a solid industry relationship has become a thing of the past, while profitability has evolved into a short-term phenomenon. Manufacturers know they need its distributors and resellers to provide a local face on a global presence. While resellers know that it would be almost impossible to compete with the disty�s clout and logistic strength. The argument is no longer about disintermediation; the channel is an integral part in a manufacturer�s sales strategy, just as the reseller cannot survive without the former.