Yes, look at any vendor or distributor and you would know what I am talking about. Even the latest entry into the gaming segment XFX who recently tied-up with AMD for ATI wants to capture the B, C and D class cities, and hence has signed up with a distributor who has that kind of reach.
Graham Kwok, senior account manager told me Friday that there is audience for gaming even in these cities, and hence it is important to tap the channel here. I agree. Let us look at the other vendors. HP, Dell, Microsoft, SafeNet, Oracle, Sun and other you can name all want to strengthen their presence in the B, C and D class cities.
Why, one may want to ask? Is it that the metros or Class A cities have reached saturation? The answer to that may be no, but the tier two and tier three cities are offering vendors and distributors a fresh scope for business, where they do not have to bother about volume sales. They can be happy selling independent components. But times are changing here as well. And the credit goes to increased penetration of television and Internet.
It is like the FMCG companies introducing sachets of shampoos to make it more affordable to the rural Indian market. And now those are a rage even with urban India. Also, school-going children want desktops or laptops at home. Everybody has realized the potential of the education and SOHO. It’s like the demand has risen suddenly, and everybody is flocking to meet it. So are the resellers.
As box pushers, they are doing decent business. But that is all. There is not further progress. Ask the resellers in these areas, and a constant response will be that the vendors or distributors do not invest time in training them. And if the trend continues, the happy customer will have to look beyond the friendly ’shopkeeper’ from whom he purchased the desktop/laptop for services. Increased delay may also result in shifting loyalties. This is happening to begin. Vendors and distributors have realized that.
Action is now being taken. Some vendors who have actually realized the potential of the B, C and D class cities are placing dedicated sales persons in local zones. Even access to spare parts and services is being made more accessible. I see the times changing for resellers in these cities and towns.
And yet, a lot has to happen. Vendors and distributors have to really work hard and integrate the resellers into the mainstream before the ink dries. Also, with the onset on monsoon, these resellers will require more hand-holding and will look at their big brothers from larger cities for help.
This can happen, but a collective effort is required. I am hopeful it will happen soon. And so till the next week end…