Opinions differ, depending on which segment of the channel one speaks to. Vendors are optimistic and have evolved aggressive plans to tap the potential that these markets promise. Nearly every vendor had some marketing strategy or the other for these towns and cities.
p____p Distributors, on the other hand, are more cautious and prefer to adopt a look-before-you-leap policy. Can�t blame them too for this attitude, as some did burn their fingers pretty badly during the peak of the hype cycle a few years ago.
p____p So whose attitude is the right one to adopt? Will the vendors enthusiasm translate into sales? Or will the distributors� play-safe policy pay off?
p____p The key here is to listen to what partners in these small towns want and then plan your move. A census done by 360 Magazine shows that these markets are still very lucrative, despite all the hype and over-estimation. Some record a growth rate of over 100 percent while others lag behind with about a 25-30 percent growth rate. But more importantly, these markets are growing, unlike the metros which have reached the saturation point.
p____p Channel partners in these towns say that they want education, training and technology seminars to help them sell better. Schemes and incentives are no more the key attractions to sell products. Partners and vendors who address this need are winning mindshare among resellers in these cities.
p____p Yes, it is difficult to enter these markets; every region being so geographically diverse from the other does throw up its set of unique problems. Return on investments are also slower to come by. But the truth is that B, C and D class cities are the markets of the future. And the more attention one pays to the channel community in these markets, the higher will be the success rate, whether you are a vendor, distributor or sub-distributor.