Dell chalks out strategy to up market share in consumer PCs

PC maker Dell is all set to launch a new range of design-led, Inspiron PCs for the consumer segment, even as it firms up a blueprint to get to the leadership position in the consumer PC market share in the country.

“One in every five consumers in India buys a Dell PC today. We have doubled market share in the consumer segment from 9.7 per cent two years ago to 24.2 per cent and have emerged the 8{+t}{+h} most trusted brand in India across categories as per the latest Brand Trust Report, India Study of 2015.

“Next week, we will be launching a new range of PCs that will wow consumers with not just ruggedness and reliability that our brand is popular for, but also with style, design and looks,” Krishnakumar P, Vice President-Consumer & Small Business, Dell India, told BusinessLine .

Two-pronged approach Stating that the company has built a two-pronged distribution strategy to get to No. 1 position in the consumer segment, which is currently held by HP with 26.7 per cent market share, he said, “First, we aim to expand our direct presence from 900 cities to 1,000 cities. Second, we want to expand our Dell exclusive stores from 470 stores in 340 cities to 825 in 600 cities by March 2016. The objective is to fulfil the need of all those people who visit our website from Tier-3 – Tier 5 cities (approx 750 cities) with the intention of buying PCs for the first time.”

While the market for desktops and notebooks is registering flat growth, the company is excited about addressing a huge opportunity that is presented by the low penetration of PCs in the country.

Eyeing households segment “India has 240 million households of which just 10 per cent (24 million) own PCs; therefore we have the exciting opportunity of addressing the need of 90 per cent of the households who are yet to buy PCs.

Compare this with markets like the US, Korea, China and Malaysia where PC penetration is at 78 per cent, 100 per cent, 45 per cent and 65 per cent, respectively.” Dell’s range of PCs span price bands starting from ₹23,990 up to ₹1.2 lakh; however, the bulk of sales for the company falls in the price range of ₹28,000-42,000.

Classifying PC buyers under two categories – technology-aware customers and technology-challenged customers, Krishnakumar pointed out that the latter presents the biggest market opportunity for Dell. “Close to 80 per cent of our business would come from the tech-challenged and the balance from tech-aware consumers,” he said.

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