|
Jagadish Prasad
Proprietor,
Sree Shakthi Systems and Services
How big is the Vijayawada market?
Till October, the IT market in Vijayawada was healthy, and resellers sold 2,000-2,500 PCs a month. However, since the slowdown set in, sales have slipped to around 1,200-1,500. Nearly 150 resellers operate in the district.
What are the drivers for IT growth?
Vijayawada is a trade hub that caters to a vast region from central to coastal Andhra. It houses few institutions and corporates. There are some 550 engineering colleges in Andhra, and a majority of them are in Vijayawada’s neighboring districts. A number of resellers in the city cover these upcountry markets to stay profitable. It is the home/SOHO market that contributes 80 percent of market revenues within Vijayawada. The corporate and education segments contribute the rest.
What are the buying trends?
Assembled PCs hold a significant share of the market, accounting for nearly 85 percent of the desktop market. The sales of notebooks have slowly started catching up. One out of every two computers sold is a notebook. The traders are slowly learning about mobile PCs, and their sales are looking up.
What are the key challenges faced by resellers?
Support was a major issue a few years back, and so were supplies. Today, almost all vendors have set up shop in Vijayawada, and since then things have improved. The biggest challenge remains the credit scene in the market, especially with the economy in bad shape. The financial institutions are not supportive, and are apprehensive of lending. Most traders have to depend on vendors or distributors for credit, and they are also struggling with numbers as the volumes are down. We wish that we had more customers, especially in corporate segment.
What are the activities organized by your association?
Though we have a number of partners in the city, we lack the cohesiveness to have our own association. However, we unite to address any common issue that the resellers encounter. |