One of the leading players in the CDIT market in India, Dell started out with 47 Dell Exclusive Stores (DES) in March 2013. The brand currently boasts of more than 400 DES. Speaking to Point-Of-Purchase, P. Krishnakumar, Vice  President, Consumer & Small Business, Dell India highlights further expansion strategy of the brand.

Can you tell us about the growth of consumer durables market in India and highlight Dell India's share in it?

India has a PC penetration of less than 10 per cent. We believe that the next generation of technology users is going to come from Tier 3 - Tier 5 cities, where the adoption of technology is relatively low, but steadily increasing as users increasingly acknowledge the role of technology in enhancing their lives. Dell India is concentrating on making technology accessible to these potential users and this is supported by our unique presence in the Indian market through 400+ Dell Exclusive Stores and a retail presence in over 1000 cities. We intend to double the number of exclusive stores to 800 by the end of 2015, to reiterate Dell's commitment to take the Dell technology experience closer to our users.

The idea behind our extensive retail presence is to give customers a first-hand experience of the innovation that goes into Dell products & solutions, and to ensure presence wherever our customers wish to reach us. According to International Data Corporation, Dell was the leading PC vendor in the commercial PC market and ranked second in the consumer segment as per the IDC India PC Market Tracker for Q4 CY14. Dell has consistently grown over the last four quarters with a 24.8 per cent share across business segments and a y-o-y growth of 54.2 per cent in the Indian PC market in Q4 CY2014.

How do you peg the market growth in India over the next five years?

To cater to the needs of consumers, there has been an influx of multiple, versatile form factors in the market. Technology solutions providers delivering to the rising demand for intuitive interface, and technology that packs powerful computing, mobility and portability into one simple shell; has resulted in an accelerated adoption in past decade. With the increasing penetration of technology and internet, needs of the user are becoming more unique. A key trend driving this adoption is the use of not one, but multiple devices which cater to content creation and consumption needs - be it static usage or on-the-go. Users today have the option to choose from a variety of options starting from solutions for a first time technology adopter to technology enthusiasts. While the enthusiasts are the motivation for increasing complexity and capability of newer devices and form factors, the first time adopters are likely to account for a significant proportion of the market's growth in terms of volume.

What is the significance of growing the offline network of Dell's exclusive stores?

Dell's rapidly expanding retail network is born out of the process of identifying and targeting potential technology users (for repeat or first time use) and then implementing a strategy to cater to these users. For example, most first time technology buyers would not be comfortable using the online platform as the single route of purchase for a computing device - a purchase decision which is given considerable importance in a market like India. By being present across multiple retail formats, Dell caters to unique consumer buying habits, thus strengthening our relationships with customers. A tangible presence through a robust offline network, takes our engagement with customers beyond a simple transaction, and ensures that they receive the complete Dell experience in order to establish enduring relationships.

 As a manufacturer, how do you help your dealers in managing their inventory for old stock?

Dell believes in empowering its retail channel network throughout the lifecycle of its various products and solutions. We engage year round with our retail partners to ensure consistent updating of information, content and brand training for in-store personnel, seasonal offers across geographies among several other initiatives. For example, our Dell HallaBol channel partner outreach program conducted in 2014 saw the brand engaging and energizing the retail channel for our consumer range of products during the festive season which is the biggest buying season in the country. This was complemented by seasonal offers for festivals such as Ganesh Chaturthi in Maharashtra, Onam in Kerala and Diwali in the northern region; as well as seamless consumer outreach and visibility for Dell's presence in the festive season through the Celebrate Dell Se festive campaign. The HallaBol program also strove to empower partners with additional sales support to maximize their profitability and ensure high levels of customer satisfaction.

What is your say on the franchising model? Do you think it is a sustainable model for long-term growth?

The Dell Exclusive Store (DES) model is an apt example of the franchise model of retail expansion. We have strategically expanded our retail presence and have grown from 47 DES in 2013 to 400 DES at the end of 2014. Multibrand retailers, seeing value in promoting Dell products and solutions, make the decision to represent the Dell brand exclusively. To ensure a consistent planogram across all the DES in the country, and consistent access to the brand for consumers, we offer end to end product and service trainings and branding services to each store. The complementary combination of Dell's innovative solutions, and the franchisee's extensive local market expertise in a particular region, sales trends and technical understanding of the solutions, gives the customer an overall holistic technology experience.

As leaders in PC and laptop business, who do you see as your potential competition and what are the challenges involved?

In a market as versatile as India, we want to make the PC accessible to each individual in the country. Putting customers at the core, and keeping the competition out of focus, we concentrate on innovating for our consumers to deliver a desirable technology experience. We consider our consumers as our brand ambassadors and have thus managed to build deep, lasting and long term relationships with them.

To ensure a seamless experience, we strive every day to ensure consistent warranty terms and pricing among all the authorized resellers which may be the exclusive stores, LFRs or multi-brand outlets. For the online route, we have the Dell Exclusive Sales Affiliate (DESA) through Compuindia.com, to retail our products and solutions exclusively. With regard to eCommerce websites, we have arrangements with a few players including the disclaimer on products which are sold by unauthorized third parties and the subsequent regulation of the same. At Dell, we go the extra mile to ensure that all necessary information is relayed to our end-users.

Please highlight your growth plans and a tentative turnover projection for FY 14–15.

Our retail expansion plans along with our versatile product portfolio all work in sync to result in the quarter-on-quarter growth the brand has witnessed. The opening of our 400th store was a key milestone in this strategy and in the coming year, our efforts will be put into sustaining this momentum and building a wider and stronger network for Dell in India.