Bangalore: Ecommerce is still a huge concern

Bangalore is known as the "Silicon Valley of India" because of its role as the nation's leading information technology (IT) exporter. The city is amongst the top ten preferred entrepreneurial locations in the world.

Indian technological giants Indian Space Research Organisation (ISRO), Infosys, and Wipro are headquartered in the city. A demographically diverse city, Bangalore is a major economic and cultural hub and the second-fastest growing major metropolis in India. Bangalore is home to many well-recognized educational and research institutions in India, such as Indian Institute of Science (IISc), Indian Institute of Management (Bangalore) (IIMB),National Law School of India University (NLSIU) and National Institute of Mental Health and Neurosciences(NIMHANS).

Numerous public sector heavy industries, technology companies, aerospace, telecommunications, and defence organisations, such as Bharat Electronics Limited (BEL), Hindustan Aeronautics Limited (HAL), National Aerospace Laboratories (NAL).

The city also houses the Kannada film industry. As a growing metropolitan city in a developing country, Bangalore confronts substantial pollution and other logistical and socio-economic problems.

^{As a focus of market scan The DQ Week explores condition of the IT Hub. For this we had word with various dealers and a poignant issue came into picture of e-commerce which has affected almost everyone.}

^{Association for Information and technology (AIT) is actively working in the region since 1997. It works for welfare of dealers along with monthly entertainment activities for members and their families. Hot selling brands in the region are HP, DELL, Toshiba, Lenovo and D Link reflecting that burgeoning verticals are mostly SOHO and education.}  

^{However, e-commerce is still a huge concern besides other vendor and customer problems. In this concern M.A. Sathya Prasad, president, AIT said, “The responsibility is on vendors to check how their product is being sold. Government should also intervene. If both bodies will not reach a conclusion soon e-commerce is soon to make offline market expensive and rare. Not only does this e-commerce not deal with after sales service and quality of the product. Hence, in the long run it will affect the brand image as well.”}

 ^{Satish Rao R.G., Sun Marketing}

• Which are the top-selling brands in Bengaluru?

HP, DELL, Toshiba, Lenovo

• What are the primary business verticals for this market?

Mostly SOHO and Education

• How is the market performing in the last 6 months?

Market has been suffering. The effect has been turbulent on businesses of all sizes. The need is to form a platform such that all can co-exist.

• Is e-commerce a threat?

Yes, a huge threat. It has already affected businesses in terms of market share and margins.

^{M.A. Sathya Prasad, Vanpac Systems}

• Do you face any issues with the vendors or customers?

Issues like e-commerce to begin with following the low margins and others related to credit. The market is on low cash flow so there is often a delay in payment.

• Which is the hottest selling product?

Networking range is so far the most in demand.

• What are your market predictions?

With digital India we are positive towards networking sector which is expected to grow by 25%.

• How active is the association, if any?

Association for Information Technology, Bengaluru (AIT) is very active and is working for interests of its members. It also organizes monthly entertainment activities for members and their families.

Market name: Bengaluru

Surrounding Markets: Belgaum, Mysore, Hubli, Udupi, Dharwad

Brands: HP, Dell, D Link, Lenovo

No. of dealers: 60 (approx.)

Association: Association for Information and technology (AIT)

Ishleen Kaur Takkar

(ishleenk@cybermedia.co.in)