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.
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.
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