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Home > News > People-Business
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Philips Forays into IT Accessories And Peripherals

By Pearl Mistry
Mumbai, Aug 16, 2007

Philips Electronics India has announced its foray into the IT accessories and computer peripherals segment - even as it's made tie-ups with distributor SES Technologies.


The channels have welcomed the initiative by saying that this will give partners additional leverage with a significant market share in the IT accessories and computer peripheral segment. But they also chose to give a word of counseling that the vendor should take all necessary steps to ensure proper service and backend support.

Gunjan Srivastava, director (Entertainment Solutions, Consumer Electronics) of Philips Electronics India, said that they're a leading player in the sound and entertainment accessories business, and this foray into IT accessories is in line with their strategy to bolster the PACP (Philips Accessories and Computer Peripherals) business. "Keeping our brand promise of 'sense and simplicity', we're offering the latest range of our innovative global products to our consumers," said he. According to him, this, combined with SES' strong distribution network would help the company achieve the desired leadership position by 2010.

In the first phase of the launch, Philips will be introducing Digital Versatile Disk (DVD) writers, mice and keyboards, multimedia speakers, webcams, and external hard disk drives in the market. The company aims at leveraging SES' strong network of 52+ branches and reaching out to the target audience across India.

Kurian Chandy, CEO of SES Technologies, said that with this alliance they're enhancing their product offering across PC components, peripherals, and accessories to provide customers a wider range of leading-edge technology products. He appeared confident that with PC penetration on the rise and people getting discerning on their technological needs, they shall be able to make a success of Philips range of products.

Reacting on the development, Kirit Soni, proprietor of KMS Computer, Bhavnagar, said that a vendor like Philips foraying into IT segment would help channel partners boost their business.

"By name itself, Philips is a sought after brand," he said. According to him, Philips has a wide range of products backed by superior design and technology.

A few partners in Mumbai, however, chose to suggest that the vendor should take necessary steps to live up to the market expectations as regards the service and backend support issues.

Only last year, the company had many problems related to backend support as well as the huge gap between what incentives the company offered and what the dealers demanded. The matter had also come to the notice of the metropolitan-based Trade Association for Information Technology (TAIT).

After running into rough weather over backend incentives, Philips is now facing a precarious situation, with its channel partners fast opting out of any business tie-up with the vendor, owing to product unavailability and unsettled incentive dues.

In December 2006, Mumbai-based Triune Marketing India, a onetime Star Partner for Philips, had stopped dealing with the company completely, saying that Philip products weren't available even with the distributors.

Another channel partner, Hitesh Dedhiya, partner of Modera Computers, also had echoed a similar view, saying they'd stopped dealing in Philips products since April 2006 due to the backend incentives issues.
How will Philips perform in its new venture?

     
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Comments
                                         16/05/08 12:54 AM
                                         Report as offensive
hello, can you please tell me that when philips is going to launch his pronto remote in india. I am very eager to buy that remote.
- Arjun Verma, i-ball, Kolkata
Reply  
                                         18/08/07 05:34 PM
                                         Report as offensive
Philips India , is a company who has no care taker, they don't have any responsible person to answers dealers problems . they just know how to make fool of dealers , which they did in monitor divsion . lot of dealers were made fool , no commitment was fullfilled to any of their dealer all over india. and ultimatly they have to close down their monitor bussiness in india , the same is going to happen in I.T. Accessories
- kanwal jit sing, new bakshi comp, ludhiana
Reply  
                                         30/10/07 09:21 AM
                                         Report as offensive
  dear sir please send rs philips dvd with usb and auther dvd rs with dipawali offer
    - jitender, Anonymous, jodhpur
 
                                         20/08/07 03:00 PM
                                         Report as offensive
Philips as a brand is good and can not be treated lightly, but the policy has to be stingent and dealer friendly not like what happened in past where many dealer were left in fringy with backends and commitments not coming true.
- Ankur Gupta, Royal Infovisio, ludhiana
Reply  
                                         20/08/07 03:00 PM
                                         Report as offensive
I need to be a part of the success story in promoting Philips IT Peripherals as i have enough experience in handling distributors and dealers in South India, Any opening in the company please mail me to enable to forward my CV
- Sathish, Confidential, Confidentail
Reply  
                                         20/08/07 12:18 AM
                                         Report as offensive
excellent but philips needs to launch monitors & tft lcd
- Rakesh Solanki, Max Digital Sys, Jodhpur
Reply  
                                         17/08/07 10:12 PM
                                         Report as offensive
Philips name itself gives sentiments to Indian users for reliability & durability.Mr.Gunjan Srivastava require an IT strategy lil bit difference with CE like On-ground sales plan, channel relations, distribution management, effective market communication, and new Product launching strategy will give the key for success in IT.Best of Luck....hope this time they will do wonder in IT.
- sanjay, IT Expert, New Delhi
Reply  
                                         17/08/07 11:50 AM
                                         Report as offensive
Definitly good. We would like to be partner of the company as reseller because philips has a sound position in quality products and customers will take these products with great satisfaction of world class brand and superior quality.
- govind soni, ashutosh digita, Chhindwara
Reply  
                                         17/08/07 11:39 AM
                                         Report as offensive
Definitly good We would like to be partner of the company as channel.
- Rajiv kapoor, comptech india, agra
Reply  
                                         17/08/07 09:29 AM
                                         Report as offensive
The way we have to run from pillar to post to get warranty calls completed for Philips Monitors, I doubt if i would touch a philip product even with a barge pole. Even the distributor raised up his hands saying he only sells, and is not bothered about service.It is the vendors headache, and the vendor's so called authorised service centre is so bad, that its better not to talk about the same.Of course once we got in touch with Philips representatives, they made sure the call was closed very fast, but then when there is a service provider and a distributor, going again and again to the company people is something which is not correct.
- Sudheer Prabhu, Softek Marketin, Ponda, Goa
Reply  
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