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New Delhi
July 21, 2008
Dell's entry into the market via channel has given a major boost to its
business making the brand the second most preferred after HP. With the company
revamping its channel policies and getting more aggressive in terms of
appointing partners, the channel is all praise about Dell. On the other hand the
force with which the company is increasing its visibility has shaken the
marketshare of other competitor brands including leaders-HP, Lenovo, Acer and
Sony.
| Winning Notes |
| Adopts 2-fold model: stock
& sell and website |
| Reduces delivery time from 15
to 7 days |
| Weekend closing instead of
month-end |
| Only one national distributor |
| 5-year warranty on monitors |
Sudhir Arora of Computer Gallery, Indore said, “Dell has been appointing
regional distributors to capture the market. In Madhya Pradesh they are covering
the tier-3 cities in a bid to penetrate deeper. Besides, the brand's
visibility has increased which was not the case earlier. Dell has revamped its
policies and has now adopted a two-fold model where they are approaching the
consumer both through the channel and directly. While the channel has the stock
and sell model options before them, those partners who do not want to make huge
investments in terms of maintaining the stock and yet be able to sell Dell
laptops can now avail the website option to provide their customers with the
desired laptops and still manage to earn a margin of two percent.”
He further added that in the few months that Dell has taken the channel
route, the vendor has been successful in capturing 20 percent of the PC market.
“Dell's sale stood at zero percent in the month of May while we sold
1,300-1,400 units of HP consumer notebooks, 350 units of Lenovo and 400 units of
Acer. HP was till recently enjoying a marketshare of 40-45 percent, whereas
Lenovo stood at 12 percent and Acer at 12-13 percent. However, at the end of
June the scenario has undergone a drastic change with Dell grabbing 20 percent
marketshare. Consequently, HP's share has come down to 35-36 percent and
Lenovo and Sony Vaio have also lost out on their shares. Another reason Dell has
been able to eat into the marketshare of Sony Vaio is that it offers various
color options and customers have started demanding Dell both for its brand image
and quality.”
Another highlight of Dell's policy that has impressed partners is that
instead of having a month-end closing, the company has weekend closing which
reduces their burden to a large extent and every week partners are able to keep
a track of the business generated thus far.
Rohit Kohli of Comexcell Technologies, Kanpur and Master Affiliate for UP and
Uttaranchal region stated, “It has been three months since I have been
appointed Master Affiliate by Dell for UP and Uttaranchal and since then our
business for Dell's range of laptops have been growing by 70-80 percent with
every passing month. This has certainly affected the marketshare of the other
brands, especially Lenovo. Dell is also working to reduce the delivery time of
its products. While earlier it was 15 days it is now being delivered in seven
days.” Arora added that in terms of logistics and availability Dell is
delivering faster as compared to other companies.
Anil Mhaske of Pune-based Data Care Corporation, a regional distributor for
Pune and parts of Maharashtra pointed out that another good thing about Dell's
policy is that they have just one distributor for their products, which is not
the case with HP who has too many national distributors for their range of
products.
(Inputs from Sethuraman NR and Avishek
Rakshit)
To read full report refer to The DQ Week, July 21-27 issue Page(s) 1
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