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The Net’s Here For Keeps

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DQC Bureau
New Update

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.

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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.

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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.

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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.

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Want to be an e-channel partner?

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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.

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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.

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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.

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