Xerox to sign up Ingram Micro as national disty

Xerox Modicorp Ltd is finally getting its act together in India with regards to IT products. It is on the verge of signing up distribution major Ingram Micro India (P) Ltd as its nationwide distributor for low-end inkjet printers, high-end laser printers, MFDs, digital copiers and fax machines.

Xerox Modicorp Marketing Director, Gennady German revealed this. However, consumables are not part of the deal as yet. Interestingly, Xerox already has 18 local distributors in different cities all over the country. And these will continue for the time being.

These 18 include CompuServe Systems in Ahmedabad; ABE Valuepoint Systems and Ansata Computers in Bangalore; Fortune Associates in Bhopal; Printlink Computer in Bhubaneswar; Krish Appliances in Chennai; Balaji Digital Solution, Micro Max Technologies and Primepath Communications in Delhi; MG Solutions in Guwahati; Aakash Industries and Tricom Impress in Hyderabad; Libra Business Machines in Kochi; Vikas Udyog in Kolkata; Datalinks Marketing in Lucknow; Namaste Telecom and Pactel Telecommunication in Mumbai; and Aishwarya Automation in
Pune.

Talking about the need for continuing with these small distributors, Gennady says, "We are kids in distribution. So, we are following a hybrid model." Not only will they have to co-exist, but pricing and credit terms will also remain the same for all the distys including Ingram. Only after Ingram 'proves itself', will they be appointed as the sole distributor and also get better terms.

At the same time, Xerox is going all out to enhance its channel base and increase its mind share amongst the channel community. Its current active channel partners total up to just 120. German's personal target is to increase this number by more than four times to 500, by the end of this calendar year.

Besides, the company intends to have four to five channel programs every month to get a foothold amongst the channel community. It also intends to be 'very flexible on credit terms'. At the same time, channel and marketing spend will be increased significantly. Points out Gennady, "For channel promotion, we will match the spend by HP and Samsung."

Basically, German who came here about one year back, wants to replicate the gameplan, which he devised and executed perfectly in Russia. According to him, Xerox is number one in Russia, as a result of his strategy in which he increased the number of channel partners in the country from 100 to 1,000. Besides, the company operates there with seven distributors for products and three distributors for consumables.

Talking about the importance of the channel community, Gennady says, "You have to consistently deliver profit to your partners and to take more you, have to give more." This he intends to achieve by building a loyalty reward program for them, being flexible on credit terms, improve time to market and creating a 'pull' for Xerox products. And, he points out, the results will not be visible overnight, but over a period of three years.

As part of Xerox's `Go to Market' team in India, Gennady is primarily responsible for strengthening the company's tie-ups with regional and national distributors, improving the profitability of sales promotion agents, and growing the network of authorized channel partners. No doubt, he has his task cut out for him. But Gennady is clear on his priorities: keep on introducing newer products, roll out a partner-led program and initiate a cost-effective coverage strategy for each of Xerox's products in India.

ASIM RAINA

GURGAON (CYBERMEDIA NEWS)