The world over, channel partners
have moved from the traditional
method of distribution to the click-and-mortar method. Is this happening in our
country too? Looks like it is but there are quite a lot of issues, which have to
be looked at. One such is the psychology of a businessman.
Most traders are quite apprehensive about displaying their
prices on the Web. They feel that once a price is displayed, they have to stick
to that price and cannot go beyond that despite demand being on the higher side.
On the other hand, if the supply is more and demand less,
then a buyer may again shy away from displaying the price as the
brick-and-mortar company at Lamington Road or Nehru Place will sell it for a
lesser price.
Embrace latest technology
So what does he do? The only solution is to embrace the idea
and the latest technology (Let’s not forget that he is in a business which is
dynamic) and go with it. Because, worldwide, Internet has proved to be a big
help for the businesses and has never reduced cash flow nor the sales of a
company.
Abroad, Internet sales and the regular sales made by channels
for an IT company, be it software or hardware, goes hand in hand. Till date,
sales made by a company via their channel partners, has been on the higher side
with Internet sales merely complimenting it.
In India with the cyber laws being passed and accepted
finally, the scenario is bound to change. The consumer will have a wider range
of choices to choose from. And all this with just a click of the mouse.
Irrespective of the quantity of online sales, it can only be
a mere transaction. Unlike channel partners, it cannot offer value-adds. In
India, customers lay a lot of emphasis on pricing and value-adds. Therefore,
most regular sales happen through the wide channel network, which has been built
and nurtured.
Want to be an e-channel partner?
Before answering this question let’s try and understand who
are an e-channel partner and a value-added partner running a click-and-mortar
business.
1. By being an e-channel partner, information is dynamic,
pricing is up-to-date, orders can be taken online and payments can be taken
online too (This is now possible in India)
2. "Help" is now just a click away. This can be
provided online irrespective of it being day or night or where you are located.
3. Lower infrastructure costs and inventory stocking. No need
for stocking up products. You can move cash for rotation purposes by managing
your inventory effectively.
4. Brochures and lengthy technical details of products can be
easily scrolled on the browser. This is easier to read, faster to store and less
strenuous on the mind.
5. Documentation and taxes are still variable and complex
factors. Depend on the billing location and destination. So website prices have
to cover all possibilities. This may not be necessarily cost effective. Though
the Web offers better product pricing because of less infrastructure costs etc.
significant value additions are not offered on the web. A v-channel partner can
provide this.
Customer awareness:
Till date, the channel partner always had the advantage of
informing the customer as the latter had no knowledge or little knowledge of the
product or industry. But, today, it is not so. With the advent of the Internet,
information is available at the click of the mouse.
This means that it is best to define what you are good at. Do
not over-promise and under-deliver. Instead of trying to be the best at
everything, try to explain your core competency to your customer. It is always
better to lose a customer temporarily rather than lose him permanently.
The e-channel will have its own set of customers. So, it is
high time to use it as a tool and market and communicate what you are special at
and where your expertise lies.
But remember typical customer reaction is to touch, feel and
test what he is buying. How much ever the Web takes over our lives, this is one
aspect which will take long time to change. At least, till the next generation
takes over. So, this is an added bonus for the value-added channel partners to
look upon and gear up for the Internet invasion, which is already taking the
world by storm.