WHEN I WAS in India earlier this month, I wrote a story on this boggette about Dell attempting to use a distribution model to shift its goods in the sub-continent.
Now DQ Channels reports that Dell will adopt the “stock and sale model” – but as we pointed out at the time, it will have an uphill struggle.
The wire notes that the Indian channel is abuzz with speculation that it’s signing up local partners. Earlier this week, other news sources said that Dell would continue with its direct model in India.
However, realistically, it has to adopt a proper channel strategy in India where Internet penetration is still low and where salaries are restricted to a few. ♣
MIGHTY HARDWARE firm Dell has opened its factory in Chennai and is trying to emulate HP’s success in India by selling kit through distribution here.
That’s a mighty tough nut to crack. According to distributors and computer resellers, HP’s distribution network is near unassailable, and while there’s room for other players Dell stands little chance of wooing the Indian channel.
However, where Dell faces a Sisyphean task in the sub-continent, plucky little player Acer is doing pretty well. Lenovo, on the other hand, seems to have lost the plot.
The problem for Dell is that the channel isn’t prepared to be that sympathetic, after having to compete with a direct supplier for many years. HP, on the other hand, faced a battle with Samsung over two years ago, and consolidated its victory in India. ♣