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With laptop building-block prices falling, laptop vendors are now able to offer laptops at prices that are just a few thousand rupees more than comparable-performing desktops. The added facts that they are sleek, mobile and also a status symbol make them an ideal choice for many consumers as well as those in the SMB space.
Opportunities
- The entry-level market is the fastest-growing. The target market is first-time buyers as well as desktop PC users who are willing to opt for an upgrade. Typically, the rates are between Rs 20,000 and Rs 30,000, exclusive of taxes.
- The mainstream laptops that are powered by a Centrino Duo or Turion, and which are priced between Rs 30,000 and Rs 60,000, target users who value performance, mobility and productivity. Some vendors position products that are targeted at corporate users; these products include pre-installed Microsoft software.
- The high-end laptops target corporate users who are on the move and need workstation-class performance.
- The target market for tablet PCs is the executive who requires the specific features the Tablet PC offers, such as scribbling notes.
- There is also an emerging market for niche applications for which laptops are being considered, for example, gaming. However, the market is small in size.
- Intel is currently running a campaign for white mobile PCs, an experiment that has met with mixed success.
Facts that may help you to sell
- The laptop market is dominated by brands such as HP, Acer, Lenovo, Toshiba, Sony and LG among the MNC brands, and HCL, Zenith and Wipro among the local brands. It is a very tightly controlled marketplace where prices are almost universal except that some resellers negotiate a better deal based on the volumes they buy. Hence, remember there is scope for negotiation with almost all vendors if you can raise their expectations on volumes.
- Since it is a tightly controlled market, there is little scope for being a price winner every time on all SKUs or models. Smart resellers will identify certain SKUs (from vendors) which they see as those they can move to their customer base. Ensure that you negotiate the best price on the same.
- Do not carry inventory that you cannot move beyond 30 days.
- The best way to get better margins on sales is NOT to sell the base configuration of any model. Convince the customer to go in for extra memory. It is easy to convince most customers that sometimes they will need Microsoft Vista. You can definitely hope to make the more-than-the-usual percent of margins on the add-ons and options.
- Find the best possible sourcing deals on options, laptop accessories and other products that can be sold. Some of the best laptop resellers work on the cost on the base machine and make a killing on the accessories.
- Try to get any buyer to cough up an extra 10 percent on an upgrade. You will improve your overall margins.
- The second-hand laptop market is hot, and there are buyers at all prices. Every city has resellers who focus on second-hand laptops and computers. Have a partnership. Offer trade-ins and buy-backs, make a profit selling to such resellers, and make a sale to your customers.
- White PC laptops are not exactly happening unless you already have a successful white-box PC brand. Customers are likely to trust a system builder because they know and believe that building PCs is simple enough to trust an assembler. But most customers are not that sure about laptops. In addition, it is difficult for most assemblers to support the notebook beyond the city where they have offices and service centers. Forget about providing an international warranty. Do not attempt entering this market if you do not have a loyal customer base.
Marketing communications
Most vendors provide market development funds that can be used judiciously to get results. Most vendors will also carry your phone numbers in local advertisements published by them. In addition, vendors have their own way of lead generation, and they share leaders with their resellers.
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