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'Channels in India are likely to follow the trend abroad, where distributors approach retailers directly' - -- George Tsai, Section Manager, Asia-Pacific Sales Department, Sales & Marketing Division, Umax Data Systems Inc.

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DQC Bureau
New Update

Which are the products that you are planning to introduce in

India?

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As you know, we have already launched scanners in India. We

plan to introduce LCD monitors as well as digital still cameras very soon.

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How is your relationship with Neoteric Infomatique, your

distributor? Are you planning to introduce these products through them?

Our relation with Neoteric is very good. We are satisfied

with them and they account for a major chunk of our business in India, which is

growing. It is the same with our second distributor Summit Infotech also. Both

of them do almost the same amount of business. But Neoteric does more business.

But we will have separate channels for products like digital still cameras and

LCD monitors.

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Will you go through your other distributors?

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Our current distributors do not seem to be interested in

these products. But we can’t wait for anyone anymore. We have a list of Indian

companies who have approached us at Computex in Taipei. But I think that Summit,

our second distributor is more Net-oriented. So I think they will be interested

in our digital cameras.

Can you tell us something about your monitors?

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Our latest product is the Maxvision A5 LCD monitor. The

monitor displays a true 15-inch TFT flat viewable area with vivid and rich

colors. It has a 15-inch viewable surface area and features 1024 x 786 high

resolution. It is 1.5 inches thick and weighs only 4.2 kg. The monitor also

features Active Max Color Technology that provides sharper and vivid photo

realistic images.

Moreover, it complies with the world’s strictest standards

of TCO’99 and Energy Star of low radiation, safety, ergonomics, recycling and

power management.

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What will the prices for both the products be?

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Our digital still cameras, which go by the brand name

Astracam, would cost Rs 9990, while our LCD monitors would have an end-user

price of Rs 55,000.

What do you have to say about your channels in India?

About channels in India, all I can say is that things have

changed. In fact, things are changing and things will continue to change.

Channels in India are likely to follow the trend abroad, where distributors

approach retailers directly. I believe the business style will change step by

step. In India, we too are trying to sell to the resellers directly. But I do

not know whether it will work here or not.

What about competitors like HP?

Basically, HP has its branch office here. So it has an

advantage when it comes to duty. Kodak is the number one in digital still

cameras. So it takes time to push a new product through the channels. Three

years ago we were not very strong in India. But that is changing.

What message do you have for channel partners who complain of

falling margins?

Well, it is difficult to have very high margins. Everybody

likes to have more margins. The only way to counter falling margins is to push

more volumes.

Does Umax have plans to manufacture in India at any point of

time?

No. We don’t plan to manufacture in India. It is easy to

manage manufacturing operations in China where we have our plants. But of

course, localization is very important. We have plans to open a branch office in

India. After all our intention is to do business locally.

Don’t you think manufacturing is a way to beat the high

duty structure?

In India, duties are very high. I believe that if the duty is

deducted, then it is close to international prices.

How do you plan to sell your monitors and digital still

cameras?

To begin with, we plan to do some bundling, especially for

the LCD monitor. I would like to talk to our channel partners before we do this

because Umax is a beginner in LCD monitors. We would like to build up our image

and undertake marketing activities. Wherever possible we plan to give a scanner

free along with an LCD monitor.

Do you have any plans to introduce webcams for desktop video

applications?

We have no plan to introduce webcams. Right now we are

concentrating on LCD monitors and digital still cameras. We have met dealers and

resellers in India. We will select them immediately after I return to Taiwan.

Which are the main factors pushing your business?

Our business is growing mainly because of the Internet. What

we provide is a whole solution. We were not strong in India even three years

ago. Today we have a reasonably stronger presence in India. It takes time to

built up a channel and push your products.

Do you provide any special training to your distributors’

engineers or their channel partners?

When it comes to issues like training, we prefer trained

engineers. But if the technology is new, we will provide training. These days

scanner technology is not changing much though interfaces are changing rapidly

to become more user friendly.

Bobby Anthony In Mumbai

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