The Federation of All India IT Associations (FAIITA), the apex body representing IT federations and associations across India, has taken a decisive step to address the challenges faced by offline IT dealers and retailers. In the wake of ongoing market disruptions caused by price disparity and the growing dominance of e-commerce platforms, FAIITA President, Devesh Rastogi, has issued a formal notice to leading PC brands, urging them to resolve these issues and provide support to traditional channel partners.
In a major move to address these pain points, FAIITA President, Devesh Rastogi, has sent a formal notice to leading PC brands, urging them to take immediate action on price disparity and inventory management issues. The notice emphasizes the struggles dealers face due to the lack of support from brands, which has led to significantly low sales and unsold inventory.
In his letter, he has said, “Due to the ongoing market disruption and significantly low sales, many of our dealers have been left with no option but to return the unsold inventory. This inventory will be returned to the respective brands on the 5th of November. We regret to inform you that the assurances provided by your brand regarding support for the channel, including commitments to consistent pricing and inventory management, have failed to materialize at the ground level. This lack of support has negatively impacted our dealers, leading to the necessity of sending this notice.”
Further in his letter, “Given the current situation, we kindly request that you revise your sales targets in accordance with the actual purchase volumes by our dealers. It is critical to realign with market realities to protect our mutual interests. Furthermore, the existing policy of supporting prices through sell-through and sell-out schemes is no longer acceptable, and we demand its immediate withdrawal in favor of a more transparent pricing and support model.”
“Please note that inaction on this notice will lead to serious consequences, including a halt in payments, a purchase ban (bandh), and potential ground-level agitation against the illegal online practices by brands and e-commerce portals that have harmed the traditional channel. We request you to confirm receipt of this notice to FAIITA and the respective channel partners at your earliest convenience,” letter concluded.
The letter concludes with a firm warning to brands that failure to act on these concerns will result in significant consequences. These may include a halt in payments, a purchase ban (bandh), and potential ground-level protests against unfair online practices by brands and e-commerce platforms that are harming the traditional IT retail ecosystem. FAIITA has requested acknowledgment of the notice from the brands and their commitment to address these issues.
Recently, FAIITA, in partnership with the Uttar Pradesh Computer Dealers Welfare Association (UPCDWA), organized a Retail Conclave in Lucknow, where retailers and dealers from across India came together to discuss these key challenges. Representatives from major PC brands were also present to engage in constructive dialogue and find solutions to the pressing concerns of offline channel partners.
FAIITA’s proactive stance underscores its unwavering commitment to defending the rights and interests of IT dealers and ensuring a sustainable business environment for offline partners amidst market disruptions.
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