With The Rise of E-Commerce, Distributors Must Establish A Strong Online Presence: Beetel Teletech

With The Rise of E-Commerce, Distributors Must Establish A Strong Online Presence: Beetel Teletech

The Indian IT distribution market has witnessed a significant increase in demand for IT products across various sectors, leading to a notable growth in recent years. This surge in demand indicates promising growth prospects for the Indian IT distribution market in the year 2023. Briefing about the growth of the market, Sanjeev Chhabra, Managing Director & CEO, Beetel Teletech Ltd commented, “Looking at India's rapidly growing technology landscape accompanied by proactive government measures such as the PLI scheme, The IT distribution market is expected to flourish in the coming years. As per the 2022 NASSCOM Tech CEO Survey, over 70 percent of Indian CXOs believe that 2023 is poised to be another banner year for the industry amidst growth in technology spending and the broader economy.

He further added, “With the increased adoption of new-age technologies such as IoT, data analytics, cloud computing, artificial intelligence, etc, the demand for IT value-added products such as data center racks, enterprise networking solutions, cybersecurity solutions, etc are also poised to grow. This would further propel the growth trajectory of the Indian IT distribution market during the year 2023.”

Major Challenges For Distribution Market Players

While the Indian IT distribution market has witnessed remarkable growth and offers significant opportunities, distribution houses operating in this dynamic industry also face various challenges. Commenting on this, Sanjeev said, “Distribution companies face several challenges in today's business landscape. Managing working capital, including inventory, accounts receivable, and payable, is a significant concern. Strategies such as efficient inventory management, technological automation, strong supplier and customer relationships, effective credit management, and careful monitoring of cash flow can help overcome these challenges. Effective inventory management is crucial for cost optimization and customer satisfaction.”

“With the rise of e-commerce, distributors must establish a strong online presence, optimize the customer experience, and manage digital marketing, payments, and logistics. Demanding customers require personalized experiences and exceptional service, while increased competition from manufacturers calls for differentiation and building brand loyalty. Fast delivery demands necessitate streamlined logistics operations and efficient inventory management,” concluded by Sanjeev.

Key Segments Witnessing Higher Growth

When asked about the growth areas for distribution companies, he said, “The cybersecurity, Cloud, AI, IoT & IT value-added product market is probably one of the fastest-growing segments across India's technology landscape. With India standing in the midst of a massive digital revolution, the demand for new-age technology solutions such as cybersecurity, Cloud, AI, IoT, etc are anticipated to grow exponentially. As per a recent report by NASSCOM, 75% of the CIOs plan to upscale their expenditure across cloud and other digital technologies. If we talk about the IT value-added market, the demand for services such as data center racks, etc are poised to grow owing to the proliferation of Data & the growing need for handling that data effectively. As per recent industry estimates, the Indian Data Center Rack market is expected to grow at a CAGR of 10.6% between 2022 - 2028.”

Growth of Refurbished IT Product Market

The refurbished IT product market has experienced remarkable growth in recent years and can be seen as fastest growing sector. Few of the major tech companies have started offering their own refurbished product lines, capitalizing on the growing opportunities. Sharing his views on the growth of this market, Sanjeev Chhabra said, “Asian countries are experiencing a rapid surge in the demand for refurbished products. With an increasing emphasis on sustainability, refurbished products are driving a new trend in various business domains. This trend is gaining significant momentum in India. As one of the fastest-growing economies, the country presents abundant opportunities, and the market for refurbished items holds immense growth potential. Major global companies have begun to recognize the significance of reuse and recycling as crucial factors to consider. By promoting refurbished products in the market, the country will contribute to further progress in its economy, while also aiming to effectively address the long-standing environmental challenges that pose a threat to life on our planet.”

He further adds, “India is witnessing a remarkable upward trend in the refurbished market, with expectations of a twofold growth by 2025. Technologically-enabled products, in particular, are leading the way. The unexpected demand for reconditioned products has reached an all-time high in the country, and the predominant factor influencing this trend can be attributed to the work-from-home culture brought about by the global pandemic. While refurbished products are actively sold worldwide, India surpasses others by a significant margin.” 

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