FAIITA calls for nationwide purchase restraint

DQ Week Exclusive

Marking protest against vendors who allegedly failed to control predatory pricing, Federation of All India IT Association (FAIITA) has given a call for indefinite purchase restraint from 15th December onwards. FAIITA has issued a voluntary advisory to the associations across India and appealed them to direct their members to refrain from purchasing fresh stocks w.e.f. 15th December onwards from vendors and national distributors.

According to the advisory all states are advised to join the national movement of ALL INDIA Associations to fight for a level playing field and to stop predatory pricing practices indulged by OLS and others.  There are some States who have already started the momentum it is time to show solidarity all across the country.

FAIITA in its advisory said that the purchase  restraint is applicable to all IT brands and their respective products being sold and likely hood of being sold on predatory prices at OLS. The federation said that the purchase restraint would be eased only for those brands which would come forward in support of the channel taking action against predatory pricing and promise to maintain price hygiene in future. FAIITA said that the purchase restrain would continue for indefinite period for the brands which remain silent and nonchalant to the sufferings of lacks of small retailers.

According to the advisory, T1 channel partner (NDs, Direct Billing partner, RDs) would not purchase any material from OEMs (Vendors). T2, T3, T4 channel partners (SDs, MDs and RDs) would not purchase any material from any T1 channel partner or OEMs directly. T2, T3 and T4 channel partners could do internal trade with each other with their own carried stock.

FAIITA’s advisory suggested that T2, T3 and T4 channel partners would sell items by matching internet prices and debit note will be raised on T1 Channel Partners for the price differential. T1 partners could talk to OEMs on unsold stocks and ask them to take it back due to these concerns.

FAIITA and presidents of federations of IT associations across India had several meetings with the vendors on predatory prices offered by e-commerce operators in last couple of months. Representatives of FAIITA, TDAI (Trade Distributors Association of India) and MAIT (Representing associations of the Vendors) has series of meetings since last three weeks. However, the discussions could not yield desired outcome.

Multiple rounds of discussions with representatives of brand owners both at regional and national level were unsuccessful in devising within the legal frame work of the country a strategy to nip the unfair trade practice of predatory prices. FAIITA said that owners failed to bring regulation through authorization to sell online and usage of logo under the Trademark Act of the country. Therefore, the federation has taken a step of purchase refrain.

Federation of IT Associations of Gujarat (FITAG) has supported FAIITA for the momentum against Online Business. Gaurang Vyas, president of FITAG said, “It’s a fight for our survival, so let’s hold hands together for showing our unity to ourselves and the entire Country for our bright future.”

Ananda Rao, president of Federation of IT Dealers' Associations-Karnataka (FITDAK) said that the federation fully supports the bandh call. However, to make the agitation more effective, it has decided to stop purchases from vendors from 22nd December onwards.

Extending its support to FAIITA, K R Chaube, president of TAIT said, “We support FAIITA’s stand to refrain from purchasing fresh stocks from today onwards, from all NDs and vendors as a mark of protest on the inability of brand owners in stopping e-commerce portals.” He appealed all TAIT members to co-operate with unanimous stand of the IT community for the long term benefits.

Saket Kapoor , General Secretary of Delhi based  Progressive Channels Association of Information Technology(PCAIT) said that States like UP, Bihar, Haryana, Chandigarh, Goa, Odisha and Maharashtra has already supported the purchase refrain. Mr. Kapoor who is also representative of North region said that states like Telangana, Andhra Pradesh will join the agitation soon.