Asus Ups The Tempo For Mobile PC Business


5 Aug 2011
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Asus India has set itself the target of growing by 150 percent in the mobile PC segment in FY2011-12. From a turnover of Rs40 crore in FY2010-11, the company wants to clock Rs100 crore in FY2011-12. And for that, it is revamping its distribution strategy.

The company expects to gain seven percent market share in the consumer mobile PC space over the next 12 months. According to IDC, Asus netbook and notebook shipments totaled 10,500 units in Q12011.

Asus has earmarked significant investments for the growth. It plans to set up a local warehouse for a smoother supply chain.

Informed Unaez Quraishi, Director, Sales & Distribution, System Business, Asus India, “We are completely revamping our entire structure from distribution to post-sales support. We are also setting up retail stores. Although we will work with Rashi Peripherals as our national distributor, we are now focusing on the regional distribution model and will appoint one regional distributor (RD) in each state.”

According to Quraishi, Asus has already finalized 10 RDs while five more are expected to be on board in the next couple of months. “RDs will strengthen credit facilities and provide more flexibility to partners and customers. While our competition provides 4-6 percent margins, we will provide around nine percent profit margins.”

The company is setting up seven regional offices and recruiting regional branch heads. “Regional offices will be opened in Delhi, Bengaluru, Kolkata, Chennai, Ahmedabad, Guwahati and Kochi. The RDs will closely work with the branch heads who will provide us with half-yearly forecasts. We have also recruited around 60 channel managers in each state,” disclosed Quraishi.

In addition, Asus is focusing on LFRs, and has recruited a team comprising five members which would be operational by July-end.

The company is also setting up exclusive stores in small cities such as Kottayam. “We are in the process of opening 10-15 stores this year in cities like Ahmedabad, Bengaluru and Kolkata,” informed Quraishi. Asus plans to open 150 such stores in the next year and half. These stores will display gaming notebooks, the high-end NX entertainment series, and entry-level AMD Brazos and Intel dual-core notebooks.

Asus has also strengthened its post-sales services and appointed Neoteric Informatique and Rashi Peripherals for onsite warranty in 54 locations. This will be in addition to its RDs who will also double as service providers.

The company will also increase the frequency of its marketing and training activities, Quraishi said. While earlier Asus hardly had any marketing activities except some print ads, now it will have ads in all major newspapers, industry magazines and channel magazines. It will also use outdoor advertising media such as billboards and hoardings.

source : crn
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