Over the years, Dell India has gained a lot of visibility and acceptability in the previously untapped markets by building a tangible connect with the brand for existing and potential customers.
The company has been on the retail expansion for becoming the ‘Brand of Choice’ for Indians. In an exclusive interview, P. Krishnakumar, Executive Director & General Manager, Consumer & Small Business Dell India talks about the acceptance of consumer range of products, how the company is balancing both online and offline channels.
Excerpts from Interview..
CT: With Dell completing its target of 400 retail stores, what is the next target?
Krishnakumar: Dell is moving forward with the vision of becoming the ‘Brand of Choice’ in not only Tier 1 & 2 markets, but in Tier 3 to Tier 5 cities as well. We aim to be the first brand in the consideration set for first time adopters of technology in these markets. Keeping this in mind, Dell will continue to be bullish on growing its retail presence in India. We want to double our presence by the end of FY 16. The Dell Exclusive Stores (DES) give our customers the opportunity to interact with the brand and to get the first-hand experience of a Dell product.
CT: What has been the contribution of exclusive and multi- branded stores to the consumer business
Krishnakumar Our network of DES as well as our extended customer outreach through large format stores & multi-brand outlets have contributed to Dell’s presence in 1000+ cities India. This has positively impacted the awareness and the growth of the brand in Tier 3 – Tier 5 cities in the country. Dell has been ranked as the 8th Most Trusted Brand in India among 19000 unique brands and the Most Trusted Brand in the Personal Technology space by TRA in the recent Brand Trust Awards 2015.
As a technology brand, Dell recognizes the shift that consumer behaviour has witnessed towards an omni-channel approach. This essentially involves the customer taking a multi-step purchase decision, especially for technology purchases. Thus, being present in various retail formats makes our technology offerings both visible and available for consideration, regardless of the platform the customer chooses. Dell ensures that all these platforms exist in complementarity, providing the Dell experience and expertise wherever customers are comfortable accessing it.
CT: What has been the latest trend in consumer space in terms of laptop specifications and buying trends?
KrishnakumarEach user of technology has a different need, based on different objectives that technology is capable of fulfilling for them. It is important for technology brands to innovate and bring out products to suit these needs of their users. Increasingly we have noticed the predominant demand for portable devices. Consumers are looking for the ease of both access and connectivity from various locations, be it at work, at home or on-the-go. Another feature consumers are increasingly seeking is that of versatility in form factor.
This versatility is most sought in devices that double up as devices for work and for play, apart from this consumers are also looking for thinner form factors. With the increasing recognition of the potential of technology in the Tier 2 & Tier 3 cities, there is also an affinity for the adoption of the desktop form factor. The desktop has been seen as the device of choice for multi users of technology in a family environment. In these markets computers are purchased for family use and for educational purposes catering to the school going community. Intuitive user interfaces have been seen to contribute heavily to a device choice, ensuring a satisfying user experience.
CT: What has been the contribution of consumer and retail segment in Dell’s business?
Krishnakumar: Retail presence plays an important role in the process of creating an interface between technology solutions and users, across geographies. It offers first hand exposure and experience to allow users to embrace technology. Opening of new stores and expanding retail presence in the country gives current and new users of technology enhanced access to technology, thus equipping them to achieve professional and personal goals. In this respect, Dell has gained a lot of visibility and acceptability in previously untapped markets, building a tangible connect with the brand for existing and potential customers.
CT:What is the focus of Dell India for offline and online channel, how are you ensuring price protection and warranty terms for both the channels?
Krishnakumar: The underlying idea behind existing on physical and virtual platforms is to build a seamless Dell network. Our customers exist in different communities and groups – online & offline – and we endeavour to build a Dell community on each of these platforms and make the brand seamlessly accessible anywhere, anytime. So the focus becomes to have a number of retail formats, in a way that they can all complement one another.
Of course, the launch of the 400th store is indicative of our determination to deliver the complete Dell experience to as many customers as possible. This particular experience is unique considering it offers access to Dell devices, as well as credible and comprehensive information – the engagement goes beyond the products, and offers two-way communication between Dell and the customers. When it comes to pricing and warranty terms, they are consistent with all authorized resellers – be it the exclusive stores, LFRs or multi-brand outlets. For the online channel, Dell has exclusive presence in association with a sales affiliate (Dell Express Shipping Affiliate) for its own devices.
There is also an understanding with a few e-commerce companies, regarding the disclaimer on products which are sold by unauthorized third parties. We make conscious efforts to go the extra mile and ensure that our customers know where to find authorized and genuine products. It is of utmost compulsion that all the required information is relayed to the customer.
CT: At a time, when consumers are more inclined towards online shopping, why Dell India is investing on retail channel?
Krishnakumar: Online shopping is being embraced by consumers who are well versed with technology and have easy access to the internet. Though it provides a convenient platform for purchase, it is not necessarily available to every end user. India as a country only has a PC penetration of a little more than 10%. E-commerce accounts for only 2% of customer spends in the technology space. Buying a computing device is still a very personal decision among the Indian consumer and many people still prefer the touch and feel experience before investing. Dell as a brand is spearheading the wave of technology in the country. Identifying potential users of technology and then making it easier to access technology is part of our strategy. This is the thought that goes behind our extensive retail strategy.
We want to ensure that first time adopters of technology can get a first-hand experience of the device, along with the right advice on which product suits their needs and is easily available on whichever platform they choose.
CT: What has been the key focus area for Dell in terms of consumer products range?
Krishnakumar: Dell is working towards making technology more intuitive. As technology solutions become increasingly complex, we aim to make the interface for technology, simpler to use. Dell bases places the customer at the centre of the innovation and versatility in its vast product portfolio. This innovation in form factors and usage specific features and accessories, are a result of the effort to cater to a multitude of unique consumer needs with purposeful innovation in our computing range and being always connected with our tablet range.
The Venue tablets were launched in India with the voice calling facility, fulfilling the requirement of customers who wish to access their multimedia and virtual world on a compact device. The Inspiron 2-in-1s which can switch form between tablets and full-fledged notebooks, are versatile devices which enable the user to consume technology in accordance with the intended use.
CT: What are Dell’s channel expansion plans for 2015? How bullish are you about Make In India initiative?
Krishnakumar: Dell aims to be the ‘Brand of Choice’ for Indians. In the previous year, our renewed GTM a robust retail expansion plan, and more innovative and versatile product offerings have converged to result in significant growth for the brand, encapsulated in the quarter-on-quarter growth we have achieved. Our partner network extends over a few thousand resellers spread across over 1000 towns and cities in India.
We also has an onsite service footprint of over 30,000 pin codes across India. Our partner network has been as a key contributor towards our growth and consideration in the India consumer market and we will continue to invest in building and growing relationships with the community. In the coming year, we will concentrate on sustaining our growth momentum, and expanding our reach to address the next wave of technology adopters and users. We want to be featured right at the top of their consideration set when it comes to personal technology.