NECTA observe bandh to protest against price parity

In wake to raise their voice against the Price Parity issue at the hands of online market place, North East Computer Traders Association observed a complete trade bandh on 21^st November. The association protested against the predatory pricing of branded IT products like PCs, Laptops etc by the online retailers.

NECTA has warned that if the adequate measure are not taken to stop the pricing issues by the OEMs, the entire channel community will join hands across India and stop doing business. “If the OEMs will not take any step to curb the pricing issue and if they continue to deal with online retailers despite us being effected, then we will have to look for an alternate source of income and we will protest against them pan India,” informs Avinash Jalan, Secretary, NECTA.

According to Avinash the survival of thousands of small and medium enterprises in India employing lakhs of workers is threatened by the predatory pricing. The traditional channel partners have declared war against the OEMs and online industry. “Online has become a root of cause of shutting many businesses. Through this bandh we wanted to show the perception of the customers (that we fear for our business) however, we want to show to OEMs that we do not fear the close of business. What we are worried about is the price issue and not the competition. We want fair practice in business and that should be followed everywhere whether offline or online,” adds Avinash.

Traditional channel partners receive targets by the vendors and if the targets are not fulfilled the money is not paid on time and the credit exceeds to more than 45 days. Today the retail shop has become the demo centers for the customers to choose a model of their choice, have look and feel of the product and then buy it from online, where the prices are less than the retail stores. This gap in pricing is the root cause that has grappled the channel partners across India.

“Ideally vendors should sell different models online and offline which will help both the parties. However, vendors are befooling us. They are creating the difference in the market and are welcoming readymade players like MNCs. There has to have a change in this system of business and vendors are not clearing the air,” Feels Avinash.

This economic onslaught from the online companies has led to decline in the sale of consumer products in retail shops. “We are planning to approach the tax commissioner and sign an MoU to stop online trading in the state or levy taxes on online shopping so to help government in return. More than 200 traders and entrepreneurs is planning to approach Competition Commission of India on the issue, which will in long run eliminate competition altogether and eventually lead to the monopolization of IT trade. This would then enable them to dictate pricing of IT products and thereby rake in windfall gains. NECTA would stand up against such unfair practices and initiate suitable steps to stop such unfair marketing tactics by online retailers,” speaks Avinash.