Xerox shifts from direct sales to the channel model

In a bid to reach out to the market in a more effective manner, Xerox India

has decided to shift from its direct sales model and totally sell through the

channel in the country. From this year, the company has decided to opt out of

direct sales and invest instead in relationship managers and account managers to

help the channel to reach out to customers in a better manner.

Xerox India's new Office Group Executive Director, Natesh Mani, who was in

Pune to attend the general body meeting of the Computer and Media Dealers

Association (CMDA), said that the company is in the process of drawing up a

channel development program for the developing markets. "India falls under

the developing markets, which consist of at least 140 countries. The developing

markets contribute $1.7 billion in terms of revenue to the group," he said,

adding that the strategy would be declared in a few months.

India contributed revenues worth Rs 500 crore last year and the target is to

touch the Rs 1,000 crore revenue mark by 2008. According to Natesh, India

presented a large opportunity to the company since it is the second largest

economy in the world after China and the company has also chalked out a number

of initiatives for the channel.

"The strategy is to drive color and MFDs which is in excess of Rs 100

crore," Natesh asserted. "The office group business is worth Rs 300

crore in India. Xerox´s reach extends across India with 18 regional

distributors and over 8,000 resellers. Going through the channel makes more

sense since we are targeting large volumes," he added. The company has now

invested in 150 relationship managers who would service key corporate accounts

and help the channel interface with these.

According to him, Xerox has categorized its products into three groups Office

Group, Global services and product systems group. In the product systems group,

the company is targeting high-end printing systems such as mobile phone

companies and banks. Xerox has signed up with Airtel and Hutch for printing

mobile phone bills and credit card statements of ICICI. As part of the global

service group, the company offers managed services that include maintenance of

machines for corporates and event management as well. The Office group, however,

that sells office products, contributes over 70% of the company revenues in

India.

Natesh said that the company would launch seven new products in the second

quarter and 20 products during the year. While there are plans to launch

professional scanners, digital projectors, blank DVDs, CDs and flatbed computer

monitors, he said this could take some time since the channel is not yet in

place.

Last month, the company opened a call center Ask Xerox that deals with

product enquiries from any reseller. A website is also on the anvil for channel

partners that would offer a virtual learning environment for select partners.

Besides these, they would also have access to various other training programs

and webinars to be launched in the next six months.

Natesh also informed that the company plans to launch a sales portal for the

channel. In the next four to five months, resellers would be able to access

their balance sheets on a daily basis.

Xerox appointed Redington India as its disty with immediate effect. As a part

of this agreement, Redington will distribute Xerox's suite of office products

that includes laser printers, fax and multifunction devices.

As part of the agreement, which was signed by J S Kulkarni, CEO Redington

India and Natesh Mani, Executive Director-New Office Group, Xerox India,

Redington will buy products from Xerox India and sell them to channel partners,

value added resellers, systems integrators and existing Xerox loyal sales

promotion agents.

Natesh said, "Redington India has one of the strongest networks of

resellers and offices in the country. The partnership will help extend the reach

of Xerox's products to a larger base of Indian IT customers, businesses and

consumers."

NANDA KASABE



(CyberMedia News)