Advertisment

'We want to centralize all servicing activities to monitor the quality of service better'

author-image
DQC Bureau
New Update

As

MD of Asia Pacific operations, Charles Chen is responsible for sales and

profitability for Accton Technology Corporation Pte Ltd. He also provides

strategic directions for Asia Pacific operations and is instrumental in

developing new territories. Since joining Accton in July 1991, Charles has held

several senior management positions such as domestic channel manager-Taipei as

well as director of the company’s Asia headquarters. He holds a Master of

Business Administration degree from Northrop University, USA. Charles, who was

in Mumbai recently, spoke to DQCI. Excerpts from the conversation: 

Advertisment

Which are the

products that Accton is keen on introducing in the Indian market?

We are launching about

ten different products in the Indian market including wireless LAN, ADSL modems,

as well as USB modems.

Wireless LANs have

been slow in gaining popularity…

Advertisment

We expect wireless LANs

to catch up very soon. In fact, we have already received inquiries for wireless

modems from a few corporates. Of course, there are a few issues like wireless

spectrum usage to be resolved first. We also intend to begin road shows for all

these products from the middle of May in the main metros. 

What kind of demand

do you expect for ADSL modems?

About ADSL modems, we

expect demand to go up steadily. We expect to sell a few thousands in India

soon.

Advertisment

How much of sales in

India go through channels at present?

Right now almost 70 to

80 percent of our total sales are routed through our channel partners.

Have you put any

warranty policy in place?

Advertisment

Well, the Accton Express

Warranty Scheme will be in effect from April 2. We are offering repair,

replacement and servicing free for one year. We are trying to provide repair and

replace products within four days and it is here that the channel comes in. This

is because it is not merely selling, there are various servicing aspects

involved too.

What is your channel

strength in the Indian market at present?

We have about 35 systems

integrators and 80 active resellers. We are also coming out with a major channel

program soon. We launched major channel initiatives for NICs and switches from

the first week of March and are seeking resellers and systems integrators in

these product segments. Most of these switches are systems integrator oriented

products, while NICs will be aimed at the reseller market. This will help us

offer end-to-end solutions. We hope to attract a lot of systems integrators with

these product offerings.

Advertisment

Is Accton planning to

run any special schemes for channel partners?

We are coming out with a

scratch card scheme. With the purchase of every NIC, a channel partner will get

a scratch card. The biggest attraction will be a trip to Singapore. There will

also be on-the-spot cash payments. This scheme will last exactly for one

quarter.

How many channel

partners do you hope to attract? 

Advertisment

We are looking at fifty

more channel partners, from authorized stockists to resellers. We are setting up

a separate warranty support organization to whom we will outsource all the

service and support functions. In four locations, our channel partners will do

actual replacement of components. In other locations, products will actually be

replaced. We are looking at places like Cochin and Nagpur as well.

Don’t you think there will be any duplication of channels?

No, I don’t think

there will be any duplication of functions between the partners to whom we

outsource and our channel partners comprising resellers and systems integrators.

Our systems integrators and resellers have their own business pressures and may

not be able to do justice to the servicing aspects.

Advertisment

Some systems integrators

are definitely in a position to do servicing as well, but they may not have the

locations. Also, their skill levels vary from place to place. We would like to

ensure that all servicing activities are centralized, as this will help us

monitor the quality of service better. Moreover, even if our channel partners

change the focus of their individual businesses, service will not be affected in

any way. 

Don’t you think

systems integrators could earn better margins from servicing?

Well, we believe that

their margins will not be affected in any way, as they will be able to

concentrate on maximizing their revenues from other areas.

Are you offering any

specific training to engineers?

We plan to train

engineers of our support centers extensively. The formal agreement with our

service partner has also been signed. In fact, we have already trained 12

engineers all over the country. For systems integrators, we are going to have

training programs by the end of this quarter.

Are you planning to

upgrade your Indian operations in any way?

Sure. Accton India is

now a 100 per cent subsidiary. We are upgrading our Indian liaison office to an

independent profit center. While the Indian office will continue to report to

Accton Asia Pacific, it will have a direct say in the operations in India. The

India profit center will contribute $25 million or nearly a quarter of Accton

Asia Pacific’s targeted $100 million in revenues by 2003. Our Indian

subsidiary will now import semi knock-down kits (SKDs) and complete knock-down

kits (CKDs) and assemble them within the country.

Do you feel that the

ongoing slowdown could affect your plans?

We believe that the

Indian market is expected to explode in the years to come and we would like to

be part of that growth. India is unlike other markets like Korea for example.

Also, the Indian economy is still growing. So I don’t think it will affect our

plans. 

What is your

impression about Indian channel partners?

I think Indian channel

partners are very fast learners.

Bobby Anthony in Mumbai

Advertisment