The Union Government’s recent bonanza to the IT industry has dealt a double-edged impact on the channel. While buyers are increasingly buoyed at the prospect of getting cheaper deals, the channel has fewer reasons to rejoice about falling prices, which has resulted in almost nil margins.
p____p Far too many small businesses have failed trying to be everything to everybody. Perhaps it is time for the reseller to expand his business horizon and become an opportunity partner rather than being just a channel partner.
p____p By opportunities, one goes beyond the concept of merely selling or box pushing. Apart from adding value to the trade in the form of services, it is also important that the channel inches closer in equipping themselves as “focus partners” for technology products. There is no better time than now, as the market seems set to open up at the same time the economy is picking up.
p____p Although the current distribution/channel model runs on less technology ownership and lays greater emphasis on market relationship and customer acquisition, the channel has only to blame itself for the rut it would put itself if it does not adapt itself to the changing times.
p____p Old hands in the distribution business usually are the hardest to change. In the glory days of huge margins, most of them have witnessed big figures. So now they don’t want to spend much time on any product with long sales cycle and small revenue (even though margins are more or less same). They would like to wait and watch, for which we are so well-known.
p____p It is a pity that most players are just happy in their comfort zone. Opportunities that will arise from the present changing market scenario need to be handled with care. While the wake-up call has already been sounded, the challenge is in overcoming the horse-with-blinkers-on mindset and moving towards a progressive approach.
p____p Agreed that there are pending issues to take care of. Cash liquidity, payment dropouts, lack of orders from government and corporates, among others. And by no means are these to be sidelined. This, however, does not justify the complacency that is creeping into the channel. Cribbing against vendor business practices and slack markets is as old as the trade itself and will by no means come to an end anytime soon.
p____p If the market seems overcrowded, it’s imperative that the individual should stand apart from the rest and take a serious look at his business and the direction in which he is heading. Turn around; begin anew.