Intro: All set to open exclusive stores in tier 2, 3, 4 and 5 cities next year, ASUS India sees tremendous potential in these small cities. In an exclusive chat with Peter Chang, Bhawna Satsangi finds out ASUS reach to channel and strategies for 2014.
What are the measures on which you decide the price and positioning of the product?
We have good technology to offer so we do not have to emphasize on price point. We have to give more feature, advantage to the user. We also try to keep the technology more futuristic.
What is ASUS strategy for 2014 in India?
2014 for ASUS India will continue to be much more aggressive and cover the whole channels in C & D class cities. In 2013 we have focused more on our company’s reach through exclusive retail outlets and channel Partners. As a part of our Geo expansion strategy we targeted 16 regions and covered many of them so far. Next year we will continue to finish the remaining regions and also we will try to penetrate in tier 4, 5 and 6 cities. We also have aggressive marketing plans for 2014.
How much potential do you see in class B and C cities?
There’s lot of potential in small cities. If you look at the market, these small cities market are continuing to grow with the reason there’s a larger potential in tier 2,3, 4 and 5 cities so that’s why we are not only eyeing the metro cities but also entered into these cities.
Have you developed any strategy to penetrate in tier 2, 3, 4 and 5 cities?
India being so diversified even in the channel development you have to look at these small cities also. Today internal review is not only just about the pre cut, it’s also about the availability, so we will check city by city or state by state what is our coverage or market share in particular area.
On which parameters do you select your channel for small cities?
At the initial stage we look for the partner who is willing to work with ASUS. We try to balance considering their capabilities and also their will to sell our products.
What are the trends you have witness over the years in notebooks, smartphone and tablets?
I think in last few years for sure smartphone and tablets is going too fast. Notebook originally we expect that the growth will be there but later we find out that tablet and smartphone took over the growth of notebook. I think this year we have seen big changes in the market and the trend for mobile computing is picked up well.
Do you have any dedicated product line for SME/Enterprise?
If you look at the worldwide, yes we do have dedicated product line for SME / Enterprise. But not in India, we have plan to bring some SME and Corporate products next year because this year we are trying to establish channel in an organization. Therefore, we focused more on consumer product but after this we may target SMB sector.
What will be your go to market strategy for them?
Since we are new so the first step is to establish our base and leverage our product because I think we are the company so far who can really provide photo solutions like notebook, desktop, tablets, and smart phones. I think this will be our strength.
What are your parameters while selecting the qualified partners under ASUS Giant Lion Pride Channel Summit?
We set up some target, set up some period and during the period the channel has to achieve the target and then we try to bring them to this giant lion scheme. But the target is not similar for all the partners. It could be different from partner to partner of course the idea will be, we will set up some space as partners need to grow to at least 20-50% . For the Europe trip the period that we set up was for 2013. While setting up the target for partners in small cities, ASUS always think about their capacity, how big are they, even in big cities there are some partners who are not much competent then we give small targets to them. So we look into partner by partner what is their capacity and then we set out the target for them.
But there are few partners who went to Europe despite not achieving the target?
Most of the target that we set up, we see that the partners should achieve that. In the commercial world we also try to find the balance. If you are loyal to ASUS we are loyal to you. We are trying to find the balance between the exact figures and also our relationship.