Na­ga­land: Chan­nel-friendly Gov­ern­ment

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Unique to all other north-eastern states, Na­ga­land has an even spread of chan­nel part­ners, fea­tur­ing a twin mar­ket cater­ing ex­clu­sively to each con­sumer seg­ment. More­over, this state has the third high­est av­er­age chan­nel in­come with a ‘chan­nel-friendly’ state gov­ern­ment.

Dima­pur and Ko­hima are the twin mar­kets oper­at­ing in the state, with the for­mer cater­ing mostly to re­tail and the lat­ter ex­clu­sively bag­ging gov­ern­ment deals. With just 11 chan­nel com­pa­nies in the state, the mar­ket spins ` 48 crore ev­ery year across ver­ti­cals, with ` 33.6 crore (av­er­age) com­ing in from the state gov­ern­ment only. How­ever, the state has just two con­sumer seg­ments, ie, the re­tail and the gov­ern­ment with SMB or the cor­po­rate seg­ment nearly ab­sent in the state.

The av­er­age y-o-y growth for Ko­hima has been 8.3%, while Dima­pur had a lower value at 6%. The lower per­cent­age for Dim­paur mainly ac­counts of the fact that dur­ing elec­tion years, re­tail pur­chases go down and the state gov- ern­ment lim­its the new pro­cure­ment as well. But, on­go­ing projects keep the over­all tempo go­ing.

The state de­part­ments mak­ing ma­jor pro­cure­ments are the health­care division, home, so­cial wel­fare and plan­ning, and fi­nance. The key ven­ture in the state (val­u­a­tion) is the NRHM project. Five of the seven firms based in Ko­hima op­er­ate in the gov­ern­ment seg­ment with a near equal rev­enue share, thereby bal­anc­ing the over­all growth.

Sim­i­lar to all other north-eastern mar­kets, the state lacks the lus­ter of na­tional dis­trib­u­tors as well as any other player even in the sub-dis­tri­bu­tion seg­ment, mak­ing the mar­ket to­tally de­pen­dent on tier-4 play­ers and sup­pli­ers. The ma­jor billing in the dis­tri­bu­tion seg­ment takes place from Rashi Pe­riph­er­als fol­lowed by In­gram Mi­cro. Billings from Redington, how­ever, have de­clined over the last 2 years mainly on ac­count of in­ter­nal chan­nel pol­icy changes with the ven­dors.

How­ever, a key de­vel­op­ment in the area has been on the so­lu­tions front where some of the ma­jor play­ers have ven­tured both into full-fledged net­work­ing so­lu­tions as well as main­te­nance and se­cu­rity so­lu­tions. How­ever, ad­vanced con­cepts are still at a nascent stage.

“Mostly the so­lu­tions are needed in the gov­ern­ment seg­ment. If it is a net­work­ing or re­lated hard­ware project, chan­nel part­ners de­ploy it them­selves. The same is with web de­vel­op­ment and an­a­lyt­ics, but for con­cepts like ap­pli­ca­tion man­age­ment and oth­ers, we out­source it to firms in Ben­galuru and Kolkata,” said Su­santa Roy of Hard n Soft.

Be­sides, the state also has a chan­nel as­so­ci­a­tion of its own, but like most of the other states, it is nearly in a de­funct stage.

“We hardly have any trade re­lated prob­lems as the mar­ket is evenly spread and do eth­i­cal busi­ness. An as­so­ci­a­tion, thus, is hardly

“Mostly the so­lu­tions are needed in the gov­ern­ment seg­ment. If it is a net­work­ing or re­lated hard­ware project, chan­nel part­ners de­ploy it them­selves. The same is with web de­vel­op­ment and an­a­lyt­ics, but for con­cepts like ap­pli­ca­tion man­age­ment and oth­ers, we out­source it to firms in Ben­galuru and Kolkata,” said Su­santa Roy of Hard n Soft.

needed in Na­ga­land,” Roy added.

Guwahati based Necta, how­ever, has a pres­ence in Na­ga­land but it is mostly of­fi­cial rather than at the ex­ec­u­tive level. The ma­jor de­ter­rent in Na­ga­land is the con­di­tion of roads and lo­gis­tics mak­ing ser­vice cen­tere and qual­ity of post-sales ser­vice an is­sue in this state too.

As of now, Na­ga­land has a con­sis­tent mar­ket per­for­mance (al­though a slow growth) but is poised to emerge as an im­por­tant cen­ter for so­lu­tions in the gov­ern­ment space.

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