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CARTRIDGE BUSINESS: Counterfeiters on the run

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DQC Bureau
New Update

The print cartridge business, which has a large share in the

consumables segment, is going through testing times. An increasing number of

counterfeit cartridges is keeping consumable vendors constantly on their toes.

HP, which has the largest share in the print cartridge market, has gone into an

aggressive mode for cracking down on those indulging in counterfeiting.

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This anti-counterfeit initiative, which is led by HP’s

Asia-Pacific team with support from local police, has achieved considerable

success especially in Chennai and Mumbai over the last few months.

According to market sources, nearly 40 percent of the cartridges

available in the market are counterfeits. It is reported that Lexmark and Epson

lead when it comes to counterfeit to original cartridge sales ratio.

Though HP is expected to continue with its crackdown initiative,

voices of discontent are being heard in the channel community. Some dealers

accuse that they have been unjustifiably troubled by such an action. They claim

that their credibility takes a severe beating in the market on account of

surprise raids by police and HP officials, even though they are found to be

innocent later.

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Many times counterfeits find their way into the distribution

channel because of one erring partner and the fake cartridge may end up with a

genuine dealer.

Some partners are also irked by the approach vendors have

adopted towards the cartridge refilling business. While claiming that refilling

is a perfectly legal activity, they disapprove of vendors spreading

misinformation about refilled cartridges. The most common sentiment that has

been floating around is that refilled cartridges reduce the life-cycle of

printers.

Partners expect vendors to extend support to smaller players

dealing in consumables. In fact, Computer Media Dealers Association (CMDA),

Mumbai has officially requested HP to recognize third and fourth tier partners

dealing in consumables. HP however is yet to take any step in this direction.

GOLDIE



MUMBAI

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