It's Time You Built Your Own Brand

What will happen to the channel when more and more vendors reach out to end-users without any intermediaries? How will channel partners do business if manufacturers follow the Dell and Compaq direct marketing model?

The questions have been discussed in-depth. Clear answers are yet to emerge. But one of the ways for channel partners to survive in this direct marketing scenario is to build their own brands, be it PCs, networking or other IT products.

Many channel partners already market their own brand of products with commendable success. Supertron sells Supercomp in Kolkatta. Apcom sells Dax brand of networking products from Chennai. Dart Computers sells Dart machines in Nagpur. Unison Technologies markets MyIndiaPC in Delhi. Prominent GIDs in Mumbai sell the Millenium brand of PCs.

All these are success stories in their own ways. Supertron, for instance, works through a well-established sub-dealer network that has competency in servicing the machines as well. Apcom is well known for its innovative guarantee and promotional schemes.

Dart, though based in Nagpur, is an ISO company and caters to the needs of homes and SOHO segment effectively. Unison has a noble objective of reaching those homes, which cannot afford computers by pricing their machines attractively. The Millenium brand of PCs with its quality has generated tremendous business for partners.

Channel partners have created these brands with their business acumen and sheer will power. These partners and many others across the country have built up their own brands based on their core identity and have prepared themselves to face the possible eventuality of vendors going direct.

It is not a matter of just getting ready to face a new market scenario. It is also a matter of going up the value chain. Most partners start their business as dealers of computer components. They then graduate to become resellers. It is as resellers that they stand the best chance of building their own brand.

Partners who have built their own successful brands have done it so after having a clear view of the marketplace and competition. They introduced their brands after finding the right gaps in the market. The case of the Millenium PC brand is a unique one as it was started by a group of GIDs who were in a position to offer machines at competitive rates because of their buying clout.

Pricing is the biggest advantage that channel partners enjoy against national or MNC brands. This is one of the primary reasons why local assemblers enjoy over 60 percent market share in the PC segment. Of course, attractive prices have to be supplemented by reliable service, which partners are used to even in their reseller business.

Then comes the establishment of a sub-dealer and service network. For a brand to move quickly in the marketplace, a dedicated network of dealers who are competent in servicing the machines is extremely essential. The strength or weakness of this network decides the success or failure of a brand.

After launching a brand, if it is not supported by promotions, the brand is as good as dead. Hence, partners have to use promotions strategically to quickly get as many new customers as possible to establish their brands strongly in the marketplace.

sylvesterl@cmil.com