Rashi ventures into non IT distribution
IT distributors foray into non-IT distribution is an obvious step to survive in the current economic circumstances. While the overall IT industry has been hit hard due to slow market conditions, distributors are the lot that has suffered the most. Distributors have multiple challenges including decreasing margins, payment delays, over distribution and vendors approaching large retailers directly.
In this scenario, every distributor (large or small) must look for alternatives. Many of them have already expanded portfolio with tablets and smartphones. While this may not be enough, they should expand base in distributing consumer durables. Besides other benefits, this space offers margins of 5-8 percent. Pravesh Sahni Kolkata