India is a very wide country, wherein for any industrial product, there are various sales points. Organizing these outlets and controlling the price that they charge is really difficult. However, as far as IT industry is concerned, it is characterized by comparatively a less number of vendors, who introduce the genuine world class certified products in the Indian market.
So, it is not that difficult to establish a way of systematic distribution of genuine IT products, and there comes into picture the IT product channels. Big vendors can never deny the contribution of IT channels to reach, popularize and distribute their products to all far and near pockets of India. However, if they fail to estimate the size of a pocket and set much higher target for the resellers, then not only it is a matter of great injustice to the hard-working channel partners, but also a step towards creating mess in the distribution system.
In the recent days, instances of direct selling of IT products to end users by vendors are being evidenced in several pockets. The vendors are attempting to grab more market share by directly offering more discount to the end users. By doing so, they are not only creating causes for great loss to the channel partners, but also spoiling the mutually faithful relationship that has been well established by now in all parts of this country.
Any drastic deviation from the well-set distribution model, although may show a temporary up trend in revenue generation, in the long run may be the prime cause behind losing sales in a particular area or zone. Are the vendors, who are taking up such by pass the channel model of distribution considering their weak points?
Channel partners are not only selling vendors products, but also they retain the clients in an area. They have a major role in tying up the local customers and convincing them to be and / or remain loyal to a particular brand. There is no such brand in India, against whom customers never raised fingers. Channel Partners often provide the cushion effect to absorb the customers rage. Instances are not rare when they have reestablished the presence of a brand in their area, which (the aforesaid brand) due to some or other reason lost the market in that area.
Thus, any vendor, before bypassing or coming down to direct competition with the resellers should reconsider its decision, allowing for the long-term effects of such an unwholesome step. As far as the penetration power in any local market is concerned, vendors cannot do better than the son of the soil. Thus, it is always wise for any vendor to go and grow hand in hand with the local resellers.