Kanyakumari IT Association members call for state-wide boycott of Lenovo products

Peeved by the alleged unethical channel policies, the Sangamam IT Association of Kanyakumari district has decided to intensify its protest against Lenovo, officially deploying "Boycott Lenovo" posters throughout the district. The association has also escalated the matter to the Confederation of IT Associations (ConfedITA), Tamilnadu Vanigar Sangankalin Peramaippu (Federation of Tamil Nadu Merchants’ Associations) and the Nagercoil Chamber of Commerce to gain broader trade support.

Roots of the conflict

The dispute between the association and the company owns its origin to Lenovo’s decision regarding a new retail store in Marthandam. The association alleges that Lenovo ignored qualified local members, despite being provided with a list of willing local partners, in favour of an external dealer outside their region.

The dealer in question reportedly operates Lenovo stores across 11 cities and manages outlets for competing brands like Acer, ASUS and Dell. The association expressed concern that Lenovo has not guaranteed that stocks will not be "infiltrated" from these other locations, which they believe threatens the local economy.

Action plan and ultimatum

In a letter officially issued by the association in the month of November 2025, the association, led by President Vimal Jeba Singh S., has issued a seven-day ultimatum for Lenovo to provide a proper solution. If the company fails to respond, the association has pledged the following actions:

• Widespread boycott: Proliferating "BOYCOTT" stickers across all retailer counters, including those belonging to non-association members
• Inventory return: Returning all Lenovo stocks, including consumer, commercial and peripheral products, to their respective regional distributors
• State-wide support: Calling upon all members of ConfedITA to join in solidarity against these unfair business practices

"Our association is committed to supporting local businesses and regional distributors," stated the association leadership in their official communication. "We urge the community to support us until Lenovo reconsiders their decision."

“More than the Lenovo store, our main concern is the multi-branded outlet that is constructed above the exclusive showroom. When a customer enters a Lenovo store, does not like their brand, is directed towards the multi-branded outlet and is influenced to buy other brand product in the same category,” Vimal told DQ Channels.

No positive signs despite multiple rounds of discussion

The ongoing dispute between the Sangamam IT Association and Lenovo has reached a critical impasse, with multiple rounds of discussions failing to produce a positive outcome. Despite the association’s efforts to resolve the conflict through dialogue, the tech giant remained firm on its decision to bypass local retailers for its new Marthandam outlet.

Where do the local partners lack?

According to some market sources, the brand had reached out to potential partners from the local region. However, the said partners did not have enough credit limit with the distributor.

“I personally feel Lenovo did not follow any unethical practices in this. They had shortlisted the potential partners and in fact reached out to the local partners. However, no single partner was qualified enough with good credit history,” said a channel partner on condition of anonymity.

He also said one channel partner was willing to set up the store. However, he was wanting to go on the "current date cheque" (CDC). In the IT distribution business, the CDC model often fails due to a combination of credit-driven market dynamics, working capital cycles and operational inefficiencies, which no national distributor might accept.

Another channel source revealed that the terms and conditions levied by Lenovo for an exclusive store do not give an equal opportunity. “The association should have fought it hard in the beginning. While they were knowing such situation is coming, stopping something when the brand had opened the outlet would create a loss for the partner who had invested around Rs 60 lakhs in the market,” another partner from a neighbouring district said.

“Today a channel partner is not the only competition for the other. A traditional laptop showroom has to face competition from e-commerce, q-commerce, LFR, mobile shops and home appliances companies. While a laptop seller cannot sell an AC or even an electrical good, market is conditioned to allow anyone to sell laptops,” another channel partner expressed.

Another leading partner who is into both sales and service of Lenovo products said, “Today we cannot stop a brand which the customer is demanding. However, an open notice of boycotting Lenovo would definitely damage the brand. They should change their position and should respect the channel partners who had spent their entire life promoting their products when the concept of online was not there,” he said.

The market reveals that the concept of a single-brand showroom is evolving and geographical limitations for channel partners are not feasible. A channel partner from Thoothukudi had recently opened a showroom in Coimbatore; a retailer from Coimbatore opens an exclusive outlet for another brand in Mumbai and Pune. Some districts have strong sentiments that the channel partner being from the same district would help in aspects like tractability if something goes wrong.

Most channel partners who spoke with DQ Channels on this issue have differed opinions. However, everyone stood on one common point: “Equal and fair opportunity for everyone.”

ConfedITA, the forum of all the channel partners’ associations in Tamil Nadu, has taken the issue in hand and escalated it with FAIITA (Federation of All India IT Associations). “Lenovo had expressed their willingness to talk with us and come for an amicable situation. I want to reaffirm that the association is for the welfare of the members and no second thought on this,” he said.

Lenovo’s statement

Lenovo responded to the query raised by DQ Channels. In an official communication, Lenovo India said, “We value our relationship with local businesses and remain committed to a channel-first approach as we expand in Tamil Nadu.”

The brand said that all partners are selected through the same fair, transparent criteria across India: retail expertise, financial strength and proven experience. “We will continue to work with the local ecosystem, as we continue to grow with both longstanding and new partnerships, ensuring each store is built for sustainable, mutual growth