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Kanpur Partners Turn to Retailing
By
Sandhya Malhotra
Delhi, Jul 13, 2007
Even as the growing competition, shrinking margins, and the need to innovate are driving several partners in Kanpur to explore newer frontiers, channel partners are increasingly entering the retail sector as a viable alternative.
Arun Bhargav, director of Techno Serva who has already entered into the retail business, plans to set up two new multi-branded retail outlets in the city by the end of 2007. Churning out an annual turnover of Rs.4 crore, he expects to boost up the business by another Rs.50 lakh by the end of the financial year.
Undoubtedly, many partners in this industrial town have capitalized on the present retail boom and are steadily moving up the ladder. In fact, reports from other cities in Uttar Pradesh also say that IT resellers are increasingly leaning towards retail as a means to improve profit.
Rohit Kohli, proprietor of Comexcell Technologies who entered into IT business way back in 1995, is now set to enter into retailing like several of his peers. "There is a lot more competition - along with squeezing profit margins - in this business. This forces us to do new things that will help us survive in the market. I am planning to enter into retailing and expand business in the SMB segment."
However, to succeed in the the retail sector, partners need to have a proper strategy in place, including the keenness to invest in services and manpower training.
As the channel veteran Bhargav points out, only dynamism can help the resellers survive as well as garner profit. "The channel partners will continue to have a bright future if they regularly review their businesses from the point of view of profitability and continue to keep their customers satisfied by value-added services and activities," he said.
Bhargav added, "The partners should be acting as advisors to their customers and not like traders - this in itself would mean value addition. The endeavor should be to upgrade the customer both in terms of hardware and software regularly."
There is no gainsaying that only a channel member who has the conviction of handling the challenges, including huge capital to ensure proper demonstration units, should venture into retail. To be successful it is essential for a partner to look at different ways of approaching the customers innovatively.
Related Link
Kanpur Partners Face Replacement Crisis
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i want detail |
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- arvind,
darpan, chandrapur
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As far as India is concerned, with the piracy levels at more than 75%, retail will form a very small part of the business and one who spends money on furnishing & paying huge rent for showroom will close down unless they have a good share of regular non-showroom based business also. PC is not like TV or fridge where you can sell a box and forget. Customers need tailor made PC's which will run all their requirement for pirated software which will run in to many lakhs (some s/w so obsolete that you need obsolete PC's to run them). To take care of such illegal sale where the dealers don?t make a single paise extra, you don?t need to have a posh office. However a showroom can be used to sell gadgets and small items (for PCs and mobile phones) which have very good margins to sustain them. |
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- Harikrishnan,
Alltime Power T, Cochin
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Future is Retail only |
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- Vikas Garg,
MKG Computers (, Agra
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