In a significant development, the Federation of All India IT Associations (FAIITA), led by President Mr. Devesh Rastogi, has issued a notice to major brands, highlighting the adverse impact of ongoing market disruptions on traditional sales channels. With plummeting sales and increased unsold inventory, FAIITA has announced that dealers will return unsold stock to brands by November 5, citing unfulfilled assurances of channel support and pricing consistency.
The notice underscores dealers’ frustration, stating that the brands’ commitments to supporting the traditional channel through inventory management and price protection have not been implemented effectively on the ground. As a result, FAIITA has requested an immediate revision of sales targets, aligning them with actual dealer purchase volumes to reflect market realities.
Additionally, the association has called for the withdrawal of the existing pricing support policy, which relies on sell-through and sell-out schemes. FAIITA has demanded a more transparent and equitable pricing model to protect the interests of traditional dealers, who have been adversely impacted by aggressive online pricing and e-commerce practices.
Failure to address the situation, according to the notice, could lead to severe consequences, including halted payments, a purchase ban, and potential ground-level protests against what FAIITA describes as “illegal online practices.”
FAIITA has urged brands to respond promptly, confirming receipt of the notice and committing to cooperative solutions that protect both the channel and the brands’ long-term market presence.
“Our dealers have been left with no choice but to return unsold inventory. We urge brands to realign with market realities, ensuring transparent pricing and genuine support to safeguard traditional channels,” said Mr. Devesh Rastogi, President, FAIITA.
Covered By: NCN MAGAZINE / FAIITA
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