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Home > News > PC-Servers
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Zenith to Bypass Redington, Tie Up With RDs

By Mrugaya Davane
Mumbai, Dec 17, 2005

Mumbai-based PC maker Zenith Computers is reverting to its earlier strategy of engaging with channel partners after deciding to set aside its tie up with distributor Redington. It will now be doing business through 16 regional distributors.

Raj Saraf, CMD, Zenith, said, "We tied up with Redington to ensure our reach in locations which we had not tapped earlier. But we realized that Redington was in turn distributing the products through regional distributors. This was adding an additional layer between the end customer and us. We then decided to tie up with RDs in these regions ourselves and eliminate the redundant layer."

A senior channel executive in Zenith though denied that the company was entirely stopping business through Redington, saying, "We are not ending our association with Redington altogether, but now it will be on client to client, and order to order basis."

Zenith had sealed an agreement with Redington in mid-2004 to look after the northern and eastern regions in phase I and subsequently address the western and southern regions. The manufacturer, who had been directly associated with its channel partners in the past, had joined hands with Redington, with a stated vision to ramp up its business, and increase its market share in the corporate space.
What do you think of Zenith's new strategy?

     
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Comments
                                         04/05/06 10:12 PM
                                         Report this as Offensive Post
i want to a job for sales Mgr. for it product.
- vijendra mandlo, tradelink compu, indore
Reply  
                                         14/01/06 09:44 PM
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i am reselling pcs of brand in nanded zenith i sell to many customers but i find that price of rd and price of reseller of zenith is more then 5% rd gives credit of 30 days and reseller gives also credit of 30 days, i prefer to buy from aurangabad reseller of zenith. so what is advantage of rd.
- Ajit Nimbudkar, Meenaxi Systems, Nanded
Reply  
                                         31/12/05 10:30 AM
                                         Report this as Offensive Post
May be tomorrow Zenith would remove this Layer of RD's also and would get in feets of End Customer. They r just hungry dogs looking for sales and sales without any support. JUST SALE AND SALE NO SUPPORT MAKES ZENITH A DULL BOY
- Anony, anony, Rajkot
Reply  
                                         27/12/05 08:14 PM
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good work ,should have done earlier,but zenith corporate and home segment should also be made one.
- ankur, royal infovisio, ludhiana
Reply  
                                         24/12/05 04:15 PM
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WITH A CHANNEL WIZARD LIKE MR. IRANI WHO NEED REDINGTON OR ANYBODY. THE DEALERS DEVELOPED OVER A PERIOD OF 10 YEARS BY IRANI AND RAJ SARAF IS COMMENDABLE. KEEP UP THE GOOD JOB SIRS.
- PRAVIN K K, POWERCOM, MUMBAI
Reply  
                                         27/12/05 03:31 PM
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  VERY TRUE. THIS TEAM IS THE BEST.
    - B.C. MATHUR, ALCOMPUTER, MUMBAI
 
                                         26/12/05 09:49 AM
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Dealers..Don't be happy!! coz one day will come when Vendor/principal will directly do business directly with the end-customers. they are eventually decresing the layer of channels and incresing their infrastructure to reach the end level of consumption.
- Anony, Anony, Ahmedabad
Reply  
                                         24/12/05 01:08 PM
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So Zenith has now woken up. Well !!! better late than never
- Santosh Pillai, Focuz Computers, Cochin
Reply  
                                         19/12/05 11:19 PM
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What's new? Ol Raj cant change his spots!!
- sailesh, computercity, bangalore
Reply  
                                         21/12/05 07:57 PM
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  Please find a seat in some primary school if you did not understand what is Zenith's new policy from this write up.
    - SajeevKumarTS, GL systems, Trivandrum
 
                                         20/12/05 06:33 PM
                                         Report this as Offensive Post
Companies like LG have been already succesful because of the RD strategy. There are lot of other guys who have to follow them. Some day or the other, they will learn it the hard way.
- Harikrishnan, Alltime Power T, COCHIN
Reply  
                                         21/12/05 07:53 PM
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  Rightly said.
    - SajeevKumarTS, GL systems, Trivandrum
 
                                         20/12/05 03:19 PM
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Excellent Strategy. The company and the management is wise enqough to take decisions depending on the market demand. I dont think there is any point for any external agency to montior this activity and mark a negative or positive comment on the companys internal & organizational strategies.
- Arun, nil, nasik
Reply  
                                         20/12/05 09:52 AM
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Ofcourse, its time that National Distis like the sleepy Redington realize what value do they actually add? RD's have better penetration & better hands on understanding of the markets. Also their decision making is faster compared to that of a product manager of National Disti who would have seldom visited that partner / location to understand the ground reality. Most National Distis are surviving because of lack of the needs of MNC brands to reach to atleast some cities. But as more & more competition comes in, they will need to take the RD support & dump sleepy national distis........Good move Zenith!!
- MumbaiChannel, Anonymous, Mumbai
Reply  
                                         17/12/05 09:37 PM
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Excellent move. The main intention of Redington was to use the strong network of Zenith (exclusive showrooms and dealers) to promote other brands especially ACER and COMPAQ. At that time getting into a Zenith showroom/dealer and discussing about a different brand was considered as an offence by the showroom/dealer. With the distributorship they managed to enter all the channel partners and attacked from all the sides with all the brands but finally did not work out.
- SajeevKumarTS, GL systems, Trivandrum
Reply  
                                         19/12/05 11:22 PM
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  you are nuts!! catch reddington stealing Zenith dealers and that will be the day!
    - sailesh, computercity, bangalore
 
                                         19/12/05 12:25 PM
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ZENITH.. REACH IN REMOTE AREAS NO NEED FOR REDINGTON SUPPORT. GOOD IDEA.
- K.BHASKAR, THECOMPUTERPOIN, RAJAHMUNDRY
Reply  
                                         19/12/05 10:38 AM
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Regional Disties are more prefered than ND's, This has been the Slogan since 2000, but Company managers diverts and give wrong advises for their own benefit to reduce the work load and do only end of month sale and relax rest of the month.
- S. K. Mishra, Corporate Compu, ROURKELA
Reply  
                                         18/12/05 12:14 AM
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very sorry to see this fail. Redington should have appointed a seperate team to work with Zenith. They could have countered the HCL - Ingram tie up here. Zenith has aggressive prices & strength of showrooms. Redington has reach into areas where Zenith was not present. Zenith could use Redingtons reach to popularise its Notebooks which is their weak areas. There was still hope. Pl try
- ashok rathi, K Mart, Mumbai
Reply  
                                         17/12/05 11:04 PM
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Its a nice work done by U sir,
- GUNA SEKHAR GMJ, RAJ COMPUTERS, TIRUPATI
Reply  
                                         17/12/05 08:05 PM
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DONT KNOW WHY SUCH A BIG PLAYER OF 2001 ENDED IN SUCH A MESS MR. RAJ SARAF , WAKE UP , WHERE DOES YOUR ORIGINAL STREGTH WENT WHERE U DID WONDERS IN PAST
- Navin, major, Mumbai
Reply  
                                         17/12/05 07:30 PM
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Its a good move.
- TEJ PRAKASH, THE COMPUTER ZO, Jaipur
Reply  
                                         17/12/05 07:23 PM
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sensible.It is better to have loyal and committed dealers than to have people who also sell zenith.
- s.ganesh ram, emcee telecom l, chennai
Reply  
                                         17/12/05 05:43 PM
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Its Good comeback. Atleast all the Indian IT companies should follow this. Wep Peripherals and some other Indian companies are always appointed Regional and Area Distributors. This is always beneficial for the channel and company's margin.
- Rajesh Agarwal, Unique Electron, Jodhpur
Reply  
                                         17/12/05 05:36 PM
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I thoroughly agree with MD Mr.Saraf's statement that the Redington was distributing to other regional distributors and Zenith did not get any advantage of getting the target counters but things move in other way and they were tapping Zenith Counter(more than 800 all India) to introduce their other products.Zenith has got very strong and dedicated channel base and the regional distributor will be of great help.
- Rajesh, Leading IT Comp, Jamshedpur
Reply  
                                         17/12/05 05:30 PM
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very good move .... present market there is no margine left for any distibutor ... zenith needs to corporate delar like us ..
- amjad, amz tech, hyderabad
Reply  
                                         17/12/05 05:01 PM
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Good news for the day
- Nirav shah, Computek system, Baroda
Reply  
                                         17/12/05 03:56 PM
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very good move .... present market there is no margine left for any distibutor ... zenith needs to corporate delar like us ..
- rakesh naik, DATABANK COMPUT, vapi ( south gujarat )
Reply  
                                         17/12/05 03:55 PM