Online trading still very nascent

Players in IT retail seem to be gung-ho about their online portals and are offering IT goods like laptops and MP3 players at huge discounts online. Recently, AXAAN Systems announced the launch of its unique business-to-consumer (B2C) portal Cafegadgets.in that offers a comprehensive range of technology and digital lifestyle products at heavily discounted prices. According to Hitesh Dhingra, Director—Operations, AXAAN Systems, “Cafegadgets.in makes a lot of sense not just for an individual retail customer but also for purchase managers and IT managers in corporate responsible for buying technology products, as they can now choose from more than 1,200 products from 40 top brands with just a click.”

With most partners still not comfortable with the online mode of communication, online trading is yet to take off in India

However, the channel partners do not appear as enthusiastic. According to Shital Nahar, Integrated Systems, Pune, “The Pune market has still not taken fancy to the concept. Traders believe in trading goods over the counters, since online transaction has lot of strings attached, especially shipment of goods and services.

Ramesh Vora, who also ventured online is not happy with the response he got. “I have been uploading goods on the portal for the past four months. But the response that I have got has not been very encouraging.”

Umang Mehta of Mumbai-based Roop Technology pointed out that many dealers are not accustomed to the use of technologies like e-mails, which are the basic need of online transaction. “In smaller cities the dealers frequently change their e-mail ids and that poses as a major hurdle for smooth online transaction,” he said.

Rajiv Khanna of Jalandhar-based Computer Touch sees online trading as a challenge to the channel community. “I had uploaded one of my products on a portal. At the same time the principal company offered the products at a much lower rate. The buyers opted for the cheaper option. In my opinion only big players can survive the price-cutting competition on the Net. Online trading will make life difficult for small dealers like us,” he said.

KL Lalani of Lalani Infotech, Kolkata, however believes it is a lucrative option. “I think now is the right time to look at the online medium once again. I am sure if it is followed systematically and publicized well, it will be a viable option for partners,” he said.

Sreedhar of Bangalore-based Triangle Technologies pointed out that online shopping was at a nascent stage in India and customers were not comfortable with the idea. In India, customers want to touch and feel the product. Also they are worried about whom to approach for post-sales service issues, he said.

SNIGDHA KARJATKAR