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New HP faces glut of retailers

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DQC Bureau
New Update

With the merger of HP and Compaq, the new HP is facing a glut of retailers.

With the result, there is fear among some of these retailers that they might

have to down shutters by the end of this calendar year.

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Explains one former exclusive Compaq retailer who has now become a

multi-brand seller, "There are over 450 exclusive Compaq retail outlets and

another 400 HP showrooms in India, concentrated largely in metros. This is too

large a number for the market. So the new HP will have to downsize this number

to a manageable 500 outlets. Which means it will have to disown quite a few of

them."

HP, however, says it will continue to invest in its retail channels for the

promotion of various products. V Krishnan, GM-Marketing, Imaging & Printing

Group, HP India, says that Compaq retail outlets will continue to retain their

current mode of operation. However, there will be lot of changes within the

store which will now have a significant presence of HP peripherals. "These

stores will also offer supplies and consumables," he adds.

According to Krishnan, HP is currently in the process of consolidating the

retail operations of both companies. Retailers see this as a reason to worry.

Says Vengarai Srinivasan, Proprietor, Cyber Boutique, "Since I am an

exclusive Compaq retailer, the new HP will protect my loyalty. But other HP

outlets which are multi-brand in nature might be threatened by this

process."

Krishnan says that the new HP is working on branding guidelines for retail

outlets. "Once an uniform branding is implemented, every store will become

a part of the new HP retail chain," he adds. But will the market absorb the

glut of new HP stores?

VINITA BHATIA

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