labels: Infotech, IDC India, Brand Dossier, Marketing
PC makers look at the consumer segment in tandem with large format retail to drive sales news
03 April 2008

Bangalore: According to an IDC India report, the market for consumer PCs grew 23 per cent year on year in 2007, compared to 19 per cent for commercial PCs during the same period.

Taking cognisance of this shift in the market, PC makers are now betting big on exclusive brand stores, and large format retail stores to drive sales in this faster growing consumer market.

What is noteworthy is that traditional strong enterprise or commercial suppliers of PCs too are now looking at capturing a fair piece of the action in the consumer segment.  Lenovo for instance, launched its consumer PC brand called Idea, which will be marketed through its 140 – odd exclusive stores. Additionally, the company now plans to double its number of  its exclusive stores it in 2008-09.

According to Amar Babu, managing director of Lenovo India, getting closer to the customer is key at this stage. Lenovo now plans to have 130 service centres through partners, by June 2008. Presently, it has only 95. This shift to retail and service support is evident of the company's overall strategy for the consumer PC market.

Also, large format electronics retail stores such as Croma, Next, E-Zone have become preferred destinations where prospective consumers familiarise themselves with the products of PC makers. Given their footfalls, these stores are also starting to show impressive sales figures.

In a significant shift in its global strategy, direct PC seller Dell has also agreed line up its consumer products in the Infinity Retail's Croma stores, marking its first tie-up with a retail outlet in India. PC makers now obviously see the need to allow customers to touch, feel and browse, as a precursor to sales. Dell goes a step further, allowing customisations for specific consumer needs, and adding  home delivery.

Mahesh Bhalla, director of the consumer division at Dell, said the company entered the consumer segment in India about a year ago, and is bullish about consumer PC sales, given its reputation for on-site support to customers in 650 cities. Dell is now beefing up its service footprint in the smaller towns.


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PC makers look at the consumer segment in tandem with large format retail to drive sales