Nation-Wide IT Traders’ Purchase Boycott To End Soon?

IT Traders

New Delhi, Dec 22: In an attempt to resolve the predatory pricing issue, the Federation of All India IT Associations (FAIITA) is finalizing online guidelines and if the brand owners and national distributors agree to it, the indefinite purchase boycott may come to an end soon.

The guidelines have been formed based on the online policies issued by the companies and will be circulated among the brand owners and national distributors once ready. Saket Kapoor, Regional Secretary, FAIITA, without confirming a date on lifting the ban on purchase said, “The stalemate over purchase ban will be ending in coming days. The guidelines are based on the brand owners issued online policies as well as spun around all the discussion, which we have been having from our first day of meeting where MAIT, NDs and brand owners were present on Nov. 21.”

For the last three weeks, FAIITA has been in discussion with the vendors and besides the meeting on Nov. 21 with leading vendors’ representatives, distributors’ representatives and MAIT officials, it has also had a series of con-calls with vendors like Lenovo, HP and Dell.

The association has prepared guidelines, which it feels will reduce the impact of predatory pricing. The contours of guidelines will be shared to all the members and later it will sent to the brand owners for their final consensus.

“Already, we are looking at the advisory issued by brand owners. Traders’ purchase restraint for last two months in different states has pressurized the brand owners. If things keep on moving in this direction, we are hopeful to reduce the gravity of predatory pricing by Jan. 15 and will set the stage for level playing field for all the stakeholders,” he said.

FAIITA is putting efforts to bring uniformity between the online and offline sale prices. The new set guidelines has been envisioned to remove the price undercutting offered by e-tailers gradually and stabilizing the MOP.

Kapoor also added, “We don’t see a steep fall in the predatory pricing. But the objective of the guidelines is to restore the price disturbance created by e-tailers. As the new sales quarter is yet to begin and for some of the companies its a start of financial years, thereby, brand owners want to resolve the offline traders issue and start the purchasing of the material in coming weeks. However, we will not take any decision in hurry, we are taking suggestions and opinion from all the four regional secretaries and their representing associations.”

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