New Delhi: FAIITA has invited major OEMS/Brand Owners to sign an MOU on or before November 10th 2017, to save IT channel businesses from OLS led predation.
With the view of emphasising the seriousness and gravity of the situation, it is decided by all state associations and federations to initiate countrywide embargo on fresh purchases of all models of NoteBook Computers and its derivatives thereof of all those OEMs and Brand Owners who dilly dally or procrastinate signing of the FAIITA proposed MOU in the interest of Channel business.
The nationwide association has also further written to FAIITA e-mail request dated October 25th 2017 for a combined Meeting with OEMs’ to arrive at a solution to permanently stop predation through deep discounting of inter alia NoteBook Computers and its derivatives by e-commerce platforms, in wake of discussions with its pan India members on maintenance of market hygiene and channel business health, The association is directed to ink with prominent brand Owners/OEMs’ an ‘Memorandum of Understanding’ (MOU) inter alia containing following agreement, in light of fairness, equity and balance of convenience:
Some of the key features of the e-communication included:
1) Indisputably it is agreed that maintenance of MOP and/or price parity between the authorized retail IT channel and e-commerce platforms is the obligation of respective brand owners
2) It is agreed that for maintenance of price parity and market hygiene all promotional sales schemes by Brand Owners/OEMs’ of inter alia NoteBook Computers and its derivatives shall be same in all respects for both authorized retail Channel partner and e-commerce platform
3) It is agreed that existence of discounted MOP on e-commence platforms shall rightfully entitle the authorized Retail channel partner to sell the inter alia Notebook Computer or its derivative if any to the consumer at the published discounted MOP of the e-commence platform and subsequently the OEM/Brand Owner shall compensate the authorized Retail Channel for the differential in MOP plus 5 percent of the MOP towards operating expenses
4) It is agreed that authorized Retail Channel partner shall raise a Debit Note on the ND or as directed by the Brand Owner/OEM, along with copy of supporting consumer Sales Invoice with copy of the e-commerce platform published discounted MOP on the date of effected sale by the authorized Retail Channel partner and;
5) It is agreed that Retail IT partner shall have the option to return to the National Distributor within 30 days of purchase, all unsold inter alia NoteBook Computers and its derivatives whose MOP has been discounted by the e-commence platforms.
The letter further reads, that FAIITA is under tremendous pressure from its pan India members to expeditiously resolve the otherwise infernal issue and save the channel business, in light of this it is strenuously urged to hold the proposed meeting without further ado on or before November 10th 2017 to have your in situ concurrence on foregoing “MOU”, else they will be constrained to issue advisory to all its members to refrain from making fresh purchases and thereafter suffer losses.