The Hindu Business Line : PC makers focusing on consumer segment

Bangalore, April 1 In India, where the market for consumer PCs grew 23 per cent year-on-year in 2007, compared with 19 per cent for the commercial PC market (according to an IDC India report), PC makers are betting big on exclusive brand stores and large format retail outlets to capture the consumer market.

For some of them who have traditionally been strong in the enterprise or commercial sector, the focus now is on the consumer segment as well.

Lenovo, which recently launched its consumer PC brand Idea, said the company has about 140 exclusive stores and plans to double it in 2008-09.

Mr Amar Babu, Managing Director, Lenovo India, said the mantra is to get closer to the customer. He said Lenovo would have 130 service centres (through its partners) by June 2008, up from the present 95. The company also plans to increase the number of exclusive service centres from its present 15. Some of their exclusive stores might double as service centres, Mr Babu said.

Important sale points

Large format electronics retail stores such as Croma, Next, E-Zone and others are gradually becoming the preferred destination for PC makers to display their wares. With these stores driving large footfalls, they are fast emerging as important sale points.

Dell recently agreed to make its consumer products available in the Croma stores, its first tie-up with a retail outlet in India. This would allow customers to touch, feel and browse, For Dell products, customers can request for customisations to suit their specific needs as well as have them home delivered, the company said.

Mr Mahesh Bhalla, Director, Consumer Division, Dell, said the company entered the consumer segment in India about a year ago, and is very bullish about consumer PC sales. He said the company provides on-site support to customers in 650 cities, and has plans to improve its service footprint in the smaller towns.

Though large format retails gives the customers an exposure to all the brands, there are very few of them in India.

Therefore, it might be a while before they significantly contribute to PC sales. Mr Shubhodip Pal, Head of Marketing – Consumer, Personal Systems Group, HP India, said although these stores do contribute in terms of sales and revenue, they are still in a nascent stage.

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