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.
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