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Thrissur, Kerala
Thrissur, known as the cultural capital of Kerala, is a major financial and commercial hub. It is also referred to as the gold capital of India, as Rs 700 crore of gold jewellery is traded annually in the city. It is home to three major scheduled banks—South Indian Bank, Catholic Syrian Bank and Dhanalakshmi Bank and also hosts a number of well-regarded universities and training schools.
Channel Scenario
Thrissur market has a channel community comprises 100 active resellers selling an average 2000 PCs per month. Notebooks account for about 60 percent, while the rest are desktops. Although, the city doesn’t have an association of its own. It has a branch office of All Kerala Computers Manufacturers and Dealers Association (AKCMADA). This association, however, has been inactive since the past one year.
Opportunities
The IT market in Thrissur is growing at a robust 40 percent year-on-year. The buoyancy of the local GDP has led to increased consumer, SOHO and SMB demand over the past two years. The home IT products in particular have been growing at over 80 percent every year.
Thrissur is also faster than its peers in adopting new technologies. Sunil Kumar, CEO, Cybertechnics says, “Products like LCD monitors, DVD players, home theaters have registered commendable growth in 2007. LCD monitors have shown more than 100 percent growth. 17-inch wide screens are maximum in demand.”
Lifestyle products are in big demand. Gelix George, CEO, Digital World adds, “Lifestyle products like laptops, Mp3 players, pen drives are in demand by all the segments. There is also high demand for branded products. The sales of branded PCs have increased in recent times; this increase can be attributed to reduction in prices.”
Wi-Fi solutions are also growing in demand among small business and homes. “There is a steep increase in demand for Wi-Fi connections and routers. Laptops and computers with Wi-Fi enabled configurations are gaining preference. Interestingly, many in the real estate industry are showing an interest in Wi-Fi, having discerned the advancing tide of technology. Builders are configuring new apartments with required routers and servers to support Wi-Fi. Almost all 5- and 3-star hotels have installed wireless networks,” says Jyothi Sankar, CEO, Gentek Computers.
Challenges
Service is a major problem faced by channels. Partners have to travel to Cochin for any service or replacement-related issue. “Some vendors like Asus, Viewsonic and Sahara do not accept couriers; hence all product replacements have to be handed over and collected in-person. After sales service is usually the key to business profitabilty. However, vendors don’t seem to realise this and ignore this element,” complains George. Another challenge that partners face is lack of adequate technical training on various products and solutions, as well as timely information about various schemes that are running for channels.
Partner Profile
Gelix George,
CEO,
Digital World
Construction to IT
A qualified civil engineer, Gelix George never dreamt that eventually he would become a successful retailer and sub-distributor. It was his home sickness that steered his career to IT. Though he had tasted success in the Gulf, yet he always wanted to come back to his motherland. Inspired by his brother-in-law, George Thomas, CEO, Aldous Glare Trade and Exports, he decided to try his hand in the field of IT. A hard worker and a person loaded with entrepreneurial qualities, it was no difficult job for George. Digital World came into existence in 1999. “My brother-in-law was doing quite well in the IT industry at that time. I always wanted to return to India and seeing the opportunity, I cashed in on it and Digital World came into being,” recalls George. In the last 9 years, his turnover has grown from Rs 10 lakh to Rs 29 crore.
Company Snapshot | | Company | Digital World | | CEO | Gelix George | | Year of Inception | 1999 | | Brands | Intel, Seagate, Samsung, AMD, Logitech, Asus, Acer, LG, D-link, Epson, Wep | Primary Business
| Retailer and sub-distributor | Employees | 40 | Turnover in 2007 | Rs. 29 Crore |
Within one year of commencement of operations, the company witnessed huge growth in its business as it also entered distribution. George describes his business as a roller-coaster ride. When he started his business it was purely into sub-distribution; however, within one year, he diversified into retail. 2004-06 was the phase when sub-distribution contributed about 70 percent of the revenues while the rest came from retail—but now the ratio has reversed in favour of retail.
George’s organization can be divided into three parts. Digital World is the primary company that handles sub-distribution, it is further divided into two segments—Digital@home which deals with retail and Digi Care which provides solutions to customers. When he opened Digital World in 2000, it was the only multi-branded IT retail store in the city. Now the company has three showrooms in Thrissur and branches in Palakkad and Calicut. Around 70 percent of his revenues come from home segment, while the remaining comes from resellers in Thrissur. His wife, Rosily Gelix, handles Digital@home, the retail wing of their organization.
George credits his success to availability of latest products and strong post-sales support provided to resellers and end-users. “We often provide technical assistance for our higher-end products like laser printers, servers, color laser printers and PCs. We also offer annual maintenance contracts to our customers. Our motto is to provide all multinational brands at wholesale prices,” adds George.
In his free time, he participates in seminars and meetings to deal with issues faced by partners. He is an avid reader and also loves to spend time with his family. |