Dell holds the third biggest market share in India for its hardware products and only around nine percent of market for notebooks. To increase its penetration in the Indian market, the initiators of direct selling have now pondered channel partners worthwhile and entered in to a tie-up with Tata Croma, to retail and expand further in the Indian market.
Dell wants to keep its growth momentum moving by focusing on four key verticals, namely- government, BFSI, education and SMEs (small and medium enterprises). The company wants to reach out these verticals directly and through its channel partners.
But in a market where HP, holds the lovable-no.1 spot for notebooks, will it be possible for Dell to outcast HP? Not only figures show HP’s best stand in the Indian market, but its distributors and customers also swear “HP loyalty”.
HP, is known for its quality after sales service, a source said. “The reason why HP is number one is India is because of their marketing strategy. They have provision for gifts for their distributors and they provide them with utmost security. Supposedly if a distributed model of HP, has some chip error, which the chip maker wants to withdraw from the market, HP at this point takes the initiative of taking all the distributed notebook back”.
When Dell initiated to involve channel partners in its European market, it didn't get much cooperation form distributors who hold the mindset: ‘because of Dell’s direct selling our business was affected, then why should we join hands with it’.
Similarly to the European market, if we go by what Indian distributors feel and considering Dell’s inexperience in the channel market, it will not be easy for Dell to shift its market into top gear. Plus, HP’s skill to lure distributors and customers will definitely be a show stopper for Dell.
When we asked an HP official to comment, if it sees Dell as a threat?, a representative said she wasn't able to give an authorised comment, but indicated HP is very-sure about its channel strategy. X.
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