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Bimal Udaui
Member,
Jamnagar Computer Dealers Association
How big is the Jamnagar IT market?
Known as the oil city, the Jamnagar market has 40 active resellers who are able to push 70 PCs in a month. The last two years saw this market grow at about 15 percent, but this has dipped drastically as a result of the present situation.
What are the drivers for IT growth?
The Jamnagar market is a mix of the SMB and consumer segments. In the consumer segment it is predominantly the education sub-segment that is driving the demand since it contributes about 60 percent of total sales. The education segment includes the home segment, with a PC becoming an essential tool for learning. There has also been a considerable increase in the number of education institutes, which in turn will push up the demand for IT in the market.
What are the buying trends?
Notebooks have been gaining popularity with every segment because of the mobility factor and also because of falling prices. Notebooks comprise about 70 percent of sales, with the rest being desktops. Which brand the consumer chooses is to a certain extent guided by the reseller. HP is the most popular brand. The accessory market is also thriving, and has seen increased demand. MP3 players are doing well in the market.
What are the key challenges faced by resellers?
There is an increase in competition because more vendors and resellers are entering the Jamnagar market. This has led to a fall in margins for resellers. Everybody in the market is there to sell, so in such a scenario not much can be done.
We expect vendors to help resellers earn decent margins, and to drive technology education among users, especially in the home segment, as this will automatically push up the sales of hardware. Also, there should be an increase in bundling options for consumers.
What are the activities organized by your association?
At present the Jamnagar Computer Dealers Association has 30 members. The association is very proactive with any issue that needs attention. At our meetings we have discussions on topical issues such as credit, pricing and liquidity. |