Expert Speak

With Eyes Wide Open

Eyes Wide Open

__p The Indian IT market place is in for a dramatic change across all segments, which in turn will offer even greater opportunities to grow businesses. Rather than wait for market dynamics to overwhelm them, resellers are seeking newer marketing strategies that will be in tune with the emerging market scenario. The writing is on the wall, WTO regime can no longer be wished away.

p____p In the emerging market, while the price factor is likely to level out, quality, branding and awareness will be the big determinants in the success of products, as businesses become increasingly competitive in the open market. Merely plying quality goods will not bring in the buyers, it will need proper packaging to remain competitive.

p____p Till recently the channel has been relying on product margins to compensate for numerous levels of support associated with deploying product solutions. But clearly product margins are shrinking as customers are able to source products more efficiently than before and are only paying for the services they perceive as having the most value.

p____p In an industry driven by fast-changing technologies with short shelf-life, products with flexibility and scalability will gain in demand. At the same time, gimmicks like schemes to push sales may no longer be as effective as it once was.

p____p What we would like to see is the ‘de-bundling’ of services such as order management, order fulfillment and effective sales and technical support, and a greater opportunity to capitalize on providing more services for all levels of the IT supply chain.

p____p And looming large on the horizon, the burgeoning Chinese market is flexing its arms, as newer players arrive on board. The only way Indian companies would be able to successfully reach both its existing and potential customers, and its targets, would be by creating and selling products, raising revenues per person through improved productivity tools, methodologies, and processes. Not to mention establishing a “brand” advantage for India.

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