"We are targeting SME and SOHO segments to be numero uno"

Armed with a new coloring technology and a lower price point, Japanese office automation products maker Ricoh is targeting the SME and SOHO segments within India to gain the number one position. Ricoh India's Marketing and Services VP, Marc Shiratori talked about the company's plans for the region and how it will address the market.

What is your present focus of activities in India?

Currently we are ranked at number two for the office copier market, the leader being Xerox. Our focus in this region is to increase our present market share of 22%. We are targeting the SME and SOHO segments to attain the first position. 

There is a huge potential for growth in the small regional markets and we want to tap this segment. Right now, we are in the process of placing the right kind of
channels in the smaller cities.

Ricoh products are considered to be expensive. Do you plan to enter into smaller segments as well?

Most of our products are sold to big organizations like banks, telecom operators, service providers and pharma companies. We have a MFD product that is priced at sub Rs 30,000 level and are looking forward to penetrating the SME and small markets with this product in the Indian market. 

What would be your channel strategy for the SME segment? Moving forward, what kind of products are you planning to launch?

At present, our channel strength is about 160 dealers spread all across the country. When it comes to the SME and SOHO segment, we plan to have at least one major distributor working for us in every state. This strategy would play a major role in our growth. 

Coming to products, we have worked on a new color technology called GelSprinter, which is a viscous gel toner and would be launched soon. We have already launched this technology about six months back in the Japanese and recently in the Italian market. 

India is one of the most emerging markets for us, even though the country contributes just about 1% of the global revenues. We believe that there is a huge potential in this market and want to realize that with a policy towards direct selling as well as channels.

What kind of fundamental changes have happened in the office automation market? How do you see the price points of products once India moves towards the WTO regime?

There are a lot of changes that are happening in the office copier market. Over the years, the market has evolved from analog to digital and now is fast changing from - black and white to color. The coming years will see a lot of futuristic products being offered by us in the color segment. 

India going towards a WTO regime is good news for the overall health of the industry. There would be adjustments in the pricing policies of most hardware products. We will try our best to pass on the benefit to the consumer if and when it comes to the industry.

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