Pune-based IT vendor Zebion claims that since its inception in 2004, it has consistently seen a year- on-year growth pattern of 50 percent. Last year, the company claims it has recorded a double-digit growth. The effect of demonetization was felt only during the month that it was announced, as consumers went into a self-imposed spending freeze. In an exclusive chat with Channel Times, Yogesh Dagale, Director of Zebion, shares the company’s channel plans for the year ahead. Edited excerpts.
Channel Times: In the current multi-channel marketplace, as a vendor, how are you planning to maintain the price parity amongst the online and offline channels?
Zebion: We try to give distributors and dealers the very best rates and the most advantageous schemes, so that prices of products available in high-street retail outlets, is roughly the same, or at least comparable with prices in online marketplaces. Moreover, we try to help and guide our distributors to sell our products on marketplaces as well, and help them with necessary paperwork. However, I must also say that I differ with the premise of your question. You seem to imply that price parity is mandatory between offline and online channels, and that parity is a necessary condition for both channels to flourish. We don’t see it that way. We feel either channel (but most particularly brick-and-mortar retail stores) can charge a premium for their value-added services. Things like instant availability, ability to tryout/evaluate, personalized expert counsel, pleasing ambiance and loyalty points are just a few of many possible value-added-services.
Channel Times: What is your distribution model and what are the innovations you are planning to bring in your distribution system?
Zebion: We have an elaborate distribution system involving distributors, direct-billing-partners (DBPs), regional stockiest, consignment agents and dealers. We have ‘Rapid Access’ warehouse management software attached to our central ERP, and an advanced numerical storage methodology, to ensure very fast retrieval and speedy shipment of goods. We work with three major logistics parts who serve the entire country from coast-to-coast, working through elaborate interlinked networks. With them we ensure every order is fulfilled very quickly, no matter how remote the point of origin.
Starting in early 2018, we plan to adopt unique ‘Demand Forecast’ methodologies and software applications. Comprehensive and credible forecasts will be created using historical data as inputs, and taking into consideration many forecast factors which includes economic health, seasonal impact, competition etc. With this innovation, we will know before time about our distributor’s projected needs. With such a system in place, we will never over-produce, under-produce, over-procure or under-procure. Distribution will be even more timely, and in some cases pre-emptive. With Zebion, no trading partner will ever complain of being out-of-stock.
Channel Times: According to you, what changes will happen post-GST in the accessories segment.
Zebion: Costs of many products may become cheaper to produce or procure. I envisage a price drop of about 8-10% on long term basis. Most vendors like us would prefer to pass on any such advantage to channel partners, who in-turn may choose to pass some or all of the benefits to consumers. I feel all parties will be better off. A side effect of GST would be that unbranded or spurious products will be ejected from the marketplace. This would be advantageous for us. It would also be good for the consumer who will always get a proper Invoice and reap the benefits of a warranty.
Channel Times: How channel-friendly is your eco-system? What are the channel plans you have for your products?
Zebion: I believe we have a friendly ecosystem, and strong ties with our growing network of distributors and dealers. Currently we have about 200 distributors and 12000 dealers registered with us. I foresee this will double to 400 distributors and 24000 dealers within two years. We maintain an open-doors policy with all businessmen who want to join the network. Certainly, we have many stipulations to maintain quality, but every potential business partner has access to me directly, or to my partners. Our on-boarding and training process takes just a week.
We also have plans to join hands with atleast 100 system integrators across the country. These are special partner associations granted to those who have taken more advanced training and executed multiple live projects. These partners are called Zebion Certified Implementation Partners (ZCIP) and we are developing a major program to recruit and train such partners.
Channel Times: How effective is your post-sale support and warranty services?
Zebion: I would say our after-sales support is among the best in the Industry. We have 64 service centers nationally now. Some are our company-owned and some are through strategically recruited service providers. A sophisticated CRM Software has been put in to handle cases very efficiently and provide status updates to customers. Both end users and dealers have appreciated the CRM, and affiliated ASPs say it’s an indispensible asset. Many of our products now have one year warranty, and a few products (such as DVRs) have three years warranty.
Channel Times: How is the overall performance of Zebion during the last fiscal?
Zebion: Over the span of two quarters, we found that demonetization actually helped us, as illegitimate players forming part of the underground economy made way for genuine players.
Channel Times: What was the key highlight of Zebion in terms of security arm and infotech arm last year.
Zebion: In FY2016-17, we augmented our portfolio in both arms and the newly introduced products are well received by consumers. In the security arm our most prominent release was EasyGo, part of our Netveillance range of IP Systems. EasyGo is a kit with four cameras and a wireless DVR. What is amazing about EasyGo is that it functions completely wirelessly and its range is an incredible 100 meters. Our customer base found EasyGo incredibly easy to setup and convenient to use. It also helped fortify our place in the Surveillance industry as a serious player in the IP genre. In the Infotech arm we have introduced a slew of Home Theatres and multimedia speakers. Our Florence range of Home Theatres now boasts seven variants. Consumers have instantly developed a liking towards this range because sound quality in immaculate, whilst price are very reasonable. Another great product, we launched just before the end of fiscal year is a special orthopedic mouse called Dollop. This has been scientifically designed to keep the human hand in its most natural position, thereby having very little impact on the muscle and bones of the carpal region. Dollop will prevent ailments such as Carpal Tunnel Syndrome (CTS) and Repetitive Strain Injury (RSI). It is the first of its kind in India; highly recommended for anyone who has used the computers for more than two hours a day.
Channel Times: What is the new product lines you are planning to introduce soon?
Zebion: Firstly we have a new range of power banks that will hit the market in early July. These are all BIS certified and are very durable. Later in October, we will launch our first Zebion TV – a 32 inch LED system. After our success with monitors this was a logical path to follow, our television will be affordable to the Indian masses, while at the same time there is no compromise in quality. There is also a distinct possibility for us to introduce a new business arm within the next 18 months which may be referred to as the Networking Arm. This arm would contain routers, switches, firewalls and network security software. We are also planning to introduce certain services in conjunction with the product in our Security Arm. This is part of a 360 degree security consulting service, which we call ‘Sampoorna Suraksha’.