Expert Speak

Soaring Summer, Rising Sales

Rising Sales

There is an optimistic note in the air. Most manufacturers are hoping that April will make up for the drop in sales of last month, which came about due to the uncertainty that VAT brought in its wake. The trend has suddenly gotten bullish. If we believe market feedback, then it’s more than the mercury levels that are expected to rise. The sales of IT products too are expected to soar.

There are several reasons for this expectation. Firstly, the buyer who stayed away from the market in anticipation of a price drop will soon find his/her way back to the market. Also, in the next few weeks, partners will have become familiar with the working of VAT and would be more confident in pitching a sale. Manufacturers too would have studied the market trend and would have stocks ready with the new prices.

But most of all it’s the partners’ attitude that is responsible for this optimism. The last few weeks have proven that the channel is ready to take on a challenge head-on. While there were still some niggling naysayers who protested against the implementation of VAT, the majority of the channel associations gave their endorsement to the new tax structure and stayed away from the bandhs held across the country.

The manner in which the partners handled the uncertainty of dwindling sales was also admirable. Stocks were slowly but surely liquidated. There was no dumping, no demands or threats for stock protection and no panic. Realizing that it was either a sink-or-swim situation, the channel worked out its dilemma in a well-thought-out manner. On their part, manufacturers too did their best to support their partners. There was no demand for unrealistic target achievements and numbers. It was the team playing at its best. There was no pressure on either side, but instead a combining of strengths to find the best possible solution.

And that is why this summer is probably going to be the best one partners have experienced to date. There is a market flooded with products, there are buyers eager to spend and there are manufacturers who are ready to support them.

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