Channel Chief
 “We expect significant growth across both direct and channel business models”
Dell recently launched its offsite service centers and inaugurated the first exclusive store. Dhaval Valia spoke to Sanjay Yadav, Country Head, Retail, Dell India, to discuss his company’s strategy for the consumer PC segment
What changes has Dell made to its channel since 1DD launch?
The idea behind One Dell Distribution (1DD) was to create a single front that will address the entire distribution channel, be it SMB or consumer.
Owing to this strategy, it is now easier and less time consuming for Master Sales Affiliates (MSAs) to do business with us. Instead, they can spend more time focusing on their business.
For tier-2 partners, things are further streamlined with the introduction of a single channel policy. This has played an important role in enhancing channel confidence in Dell.
What new initiatives has Dell rolled out in the first six months of the fiscal?
We have introduced new products in the consumer market including the high-end PC brand Adamo and the cult gaming brand Alienware. We have taken significant initiatives to increase our reach. We have also put in place a new partner incentive program called Dell Gains.
Last month, we inaugurated a flagship store in Bengaluru to enhance our retail presence. We have been very keen on value adding to our offerings. Recently, we joined hands with Reliance and MTNL to offer 3G connectivity with a select range of netbooks and notebooks.
What is Dell's outlook for the consumer market in the current fiscal?
The demand for notebooks has always been high and now we are seeing demand for our desktops grow, particularly in upcountry locations. We also expect our netbook sales to soar because of our 3G bundling.
While our AIO PCs have witnessed an enthusiastic response, we expect to see a significant growth in the gaming segment following the Alienware brand launch.
Could you elaborate on reasons to set up service centers? How many do you plan to set up in 2009?
We are the only PC vendor to provide an onsite warranty. With our aggressive expansion plans we felt the need to offer offsite services in order to allow consumers choose their preferred mode of post-sales support. We have launched two exclusive Dell service centers in Bengaluru and Delhi. Our plan is to expand to 15 centers. Most of these centers will be franchisee-owned and we have collaborated with our existing onsite service partners for these centers.
We have heard of warranty issues in Mumbai where consumers have filed cases against partners for not providing the committed support. How are you addressing the increasing complaint of your busy toll-free lines and uncoordinated remote support?
Generalizing warranty support cases might not be the right way of dealing with them. There are times when issues arise while dealing with situations that the consumer is not aware of like physical damages, expiration of warranty, etc.
Our current post-sales service infrastructure is well equipped to handle consumer queries. In fact, we do periodic audits among our channels to check if they are facing any warranty issues.
There have been incidents where Dell has billed partners higher than the MRP tag on the PC box. We are investigating the matter internally and will address the issue soon.
You recently inaugurated exclusive Dell store. Take us through your plans for exclusive retail outlets.
We recently opened our flagship consumer store in Bengaluru. The 1,300 sq ft store offers a wide range of products from the Inspiron, Studio, Alienware and Adamo brands, and related peripherals. In addition to allowing consumers personalize products to suit their unique requirements, the exclusive stores will also offer different services making it a one-stop shop for consumers. We have plans to open more stores and we will keep you updated.
How is your channel business faring compared to your direct business?
Direct continues to be a significant part of our business, but we are seeing a constant increase in the channel business. We expect significant growth across both business models.
Please provide your market share figure for the consumer category?
As per IDC figures, in the overall PC market, across segments, Dell has moved to the No 2 spot in Q2 2009 from the No 3 spot in Q1. In the consumer segment, Dell has shown sequential growth in the first two quarters of this calendar year. We have gained share and are ranked No 2 with an overall share of 9.9 percent in the PC market and 25.6 percent in the consumer notebooks segment. |