Adobe's pricing policy drawing channel's flak

Strange but true,
Adobe is selling its products like Photoshop and Creative Suite at a higher
price in India as compared to the price listed on its global website. At a time
when Adobe's India unit is running full steam when it comes to providing
research and development assistance for its global operations, it is ironic to
note that the company's fast-selling products like Photoshop and Creative
Suite are being sold at a price almost 20% higher than what is being quoted
internationally on its website.

While Adobe Systems
India is blaming the high price on the shipping charges for bringing in products
to India, the fact remains that it is the globally recognized Indian talent that
is eventually keeping their minds busy while designing these products and yet
the products are being sold at a higher price within India. “The US price does
not include shipping charges, here we pay shipping charge as well. When you look
at the price of product like Photoshop, which is $649, which does not include
the shipping charges, which would bring the price close to Rs 32,000. The same
product in India is typically sold at Rs 33,000, keeping in mind the margins
involved to support the channel model,” informs Sandeep Mehrotra, Country
Sales Manager, Adobe Systems India.

SANDEEP MEHROTRA Justifying price difference on shipping charges

When asked how other
companies like Microsoft price their products, Sandeep said that these companies
offer their products on an 'India specific pricing policy'. “We do not
have an India specific pricing policy as of now. But we are contemplating this
and have engaged an agency to conduct a market study for us. Once that study is
completed, we would be in a better position to have an India specific pricing
policy,” he explains.

On the other hand, on
the research and development front, the company is already announced its plans
to establish its print and classic publishing division within India itself. This
does reflect India's prowess when it comes to software development, but
companies like Adobe should also realize the market potential of a big
marketplace like India.

”I agree that India
does have a great potential, which however gets diluted by the rampant piracy,
which is prevalent in the country. For Adobe the figures would be close to 85%
to 90% as regards to the piracy. The key question is whether a reduced price of
Adobe products would move the users to buying the legal products or would they
still be comparing the price of the legal product with that of a pirated copy
which is available at Rs 100,” Sandeep explained.

Most resellers in the
channel community strongly feel that Adobe should try and revise its pricing
policy for India and at least make it flat for products being sold globally as
well as within India. “All I can say is that it is our people that sweat out
to develop world-class products for global operations of companies like Adobe.
The least that these companies should do is to promote these products in a
uniform fashion globally as well as within India. It is quite ironic but true
that Indians end up paying more for products that they themselves are making for
the world,” laments a big software seller from New Delhi on conditions of
anonymity.

ASKARI