Kingston eyes # 1 slot by '08

The so far unorganized memory market is expected to undergo a cleanup act
with memory major Kingston's recent direct entry into India. The company's
move has significance in more than one way. In fact, Kingston is the first
memory company to set up shop in India. It shows that the company has got a
larger game plan for the country, more than just that of capturing the PC memory
marketshare. And it is banking on the channel for its growth in the domestic
market. The company is working on a three-tier channel structure, which will
give them the necessary push in the market.

“India is getting a special focus on our global operations considering its
sheer size and growth in PC, mobile and entertainment segments. Though we have
only a small base (marketshare) in India currently, we are bullish about the
market and it's just a matter of time before we ramp up our operations here.
Even when we entered China about five years back, we were in a similar
situation. But we attained number one position within two years there. Kingston
will become a leader in India by 2008,” said Rajesh Panicker, Country Manager-India,
Kingston Technology.

Kingston has a range of products in its stable which include PC memory,
server memory, laptop memory, USB drives, flash cards for cameras and mobile.
Recently it introduced an all new product called K-PEX, which is a personal
entertainment device. The company distributes products in India through AA
Infoways, Avnet India, Ingram Micro, Kobian Electronics and Transtek Infoways.
“We are working on a three-tier model by creating new layers such as regional
distributors (in metros) and master resellers (in upcountry markets). We want to
create value for everyone in our distribution chain and ensure customers should
also get products at a good price,” informed Panicker.

On pointing out that Kingston memory products are costlier than its
competitors, he replied, “Our direct presence here would ensure product
availability and better inventory management, which will bring the cost down in
the coming months. Memory is a highly volatile market and good inventory
management will keep the cost under control,” added Panicker.

Kingston is aiming for 25 percent marketshare by 2007, and for the number one
position in the subsequent year (2008). Mobile will be the biggest target
segment for them, followed by PC and gaming. “Kingston has many advantages
that will help it to become the leader in the market with direct office
presence, service support, sales team, quality products and more,” said Nitin
Malhotra, Distribution Manager-India, Kingston Technology. The company
recently appointed Accel Frontline as their warranty support partner in India.

Talking about brand consciousness among consumers in the memory segment,
Malhotra said, “Presently, brand awareness is very low among users
(end-customers) and Kingston wants to change that. We will invest significantly
on brand building and educate the customers to ask for specific brands while
buying products. We are also looking at retail stores to sell our products and
create visibility in the market.”

Kingston will launch certificate and loyalty programs among channels, to
recognize and reward the resellers. The company's head office in India is
located at Mumbai, with branches in New Delhi and Bangalore. Chennai is also on
the cards of the company.

S Gopikrishna