NEW DELHI
SEPTEMBER 15, 2006

The Kashmir Information Technology Vendors Association's (KITVA) efforts to put a check on the price undercutting phenomenon in the valley has proved to be a fiasco caused by lack of cooperation from vendors.

In the wake of intense price disparity exhibited by dealers in selling technology products KITVA had decided to take the matter to vendor companies for their intervention but the issue got partially addressed since not many vendor companies took genuine interest in resolving the matter.

KITVA president Feroz Matto said, “Price undercutting is perhaps one of the appalling attribute of any business. Of late price irregularity phenomenon has completely taken IT business into its grips, which has become greatest cause of concern for every dealer who consciously or unconsciously indulges into this practice. As an IT channel association we have tried to uproot this problem from the market and in that we required support from principles. In fact we have approached HP, Epson and other vendors to resolve the price undercutting issue efficiently but none of them barring Epson has backed us with support.” Adding to this Imtiaz Ali, Executive Member of KITVA pointed out, “Apart from vendors, we also approached local dealers to amicably resolve the matter, but the partners who make good sales only on pricing factor denied liaising with us. On association level we tried roping in HP to convince dealers to deter from irrational pricing but the vendor gave no positive assistance.” Ali informed that the local representative of HP did not take interest in KITVA's efforts to eradicate uneven pricing.

While on the other hand Epson has openly supported KITVA in its efforts. Commenting on Epson's role in resolving the issue, RV Ram Prasad, DGM, North & West India, Epson India said, “Epson India is focusing aggressively on the northern region and we have recognized Jammu and Kashmir as an important market for development of IT products. Our consistent efforts and channels support has brought out better price discipline in market, which ensures that every dealer of the area gets an equal opportunity. Our area sales head Sudhir Saini has been regularly visiting the market and has played a crucial role in galvanizing the needs of the market and have ensured that price is maintained in a healthy condition.” Prasad further added, “We will try to adhere to same principles in future as well to make partners comfortable working with Epson.”

Matto informed that KITVA will continue to request other vendors to look into the price undercutting matter, while anticipating and optimistic remark from the companies in near future.

It may be recalled that KITVA is the most recent association formed in the valley in June this year. Currently 35 dealers of Srinagar are affiliated to KITVA. Subsequent to its efforts to eliminate price undercutting from Srinagar market KITVA is trying to convince the state government of Jammu and Kashmir to liberalize its IT procurement processes and encourage dealers of Srinagar for participation in government tenders.

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