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Wednesday, October 03, 2012

Pikom Dismisses IT Retailers' Woes

The National ICT Association of Malaysia, PIKOM, empathises with the issues faced by the ICT retailers. The retail industry is always the first to bear the brunt of any slowdown in the economy and that is a phenomenon not just locally but globally. PIKOM has always exhorted the industry to move up the value chain including bundling services and cross selling with higher margin products as part of the product offering.

In the retail industry, the margins are but one factor in the entire cost equation. Besides margins, there are rebates and marketing funds that the retailers are able to tap into. It is how a retailer manages his business in an efficient manner that will set him apart from the competition.

Price fixing also goes against the very nature of the ICT industry which is open, innovative and competitive. Market efficiency rather than mandated margins should be the determinant of the selling price to the end user.

PIKOM has always worked towards a healthy and competitive retail industry. This includes the number of PC Fairs in the country which has contributed to the overall growth of the industry and provides a catalyst for ICT adoption in various towns and cities. For a number of years, PIKOM has maintained organising three PC Fairs in major cities. Based on the feedback from members, we will only organize two PC Fairs in major locations outside the Klang Valley. However, we are not able to dictate how many other fairs organized by private companies in the country. What we can and will always do is to provide value in the PC Fairs.

With over 20% of the estimated 5,000 retailers within our membership, PIKOM regularly engages our members on issues that are affecting them.

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