The IT age is upon us, right? Wrong. Despite the ubiquity of PCs, as many as 75 percent of small businesses (SBs), having one to 99 employees, in four of the most populous countries in Asia – India, China, Indonesia and the Philippines do not own any computers at all. While some see this as a problem, it is also a huge opportunity. Because simply put, there exists an untapped demand and opportunity for vendors and their partners to convert these to PC-enabled businesses.

According to the latest study by New York-based Access Markets International (AMI) Partners Inc, this is reason to rejoice, rather than worry. The study notes that about 40 percent of the non-PC SBs in India, over a third in China and about a quarter each in Indonesia and the Philippines have expressed their intent to buy PCs in the next 12 months.

“SBs in China and Indonesia plan to spend relatively higher amounts, especially on desktop PCs,” said Dev Chakravarty, Kolkata-based Analyst at AMI-Partners. “The retail store remains the preferred channel for buying computing hardware. The touch-and-feel concept is still crucial among non-PC SBs, especially those with a low level of computer literacy. This explains the huge preference of the retail store for first-time PC buyers in the four mega economies.”

China leads the pack
Currently, China has the highest PC penetration among SBs at 33 percent. This is followed by the Philippines at 24 percent, India at 22 percent and Indonesia at 18 percent. “It is surprising that even today, a huge majority of SBs conduct their daily business without the help of computers,” Chakravarty says. “However, there is a huge latent need among these businesses for PCs that can be fulfilled by PC vendors that focus on the Asia-Pacific region.”

Most of the non-PC SBs in these four countries are small with one to nine employees each. The bulk of SBs in these countries belongs to the wholesale and retail vertical sector. The exception is China, where more than 50 percent of non-PC SBs are in the manufacturing vertical.

What hinders them from buying PCs? The primary hurdle is the belief that PCs are not relevant to their line of business. About 30 percent of non-PC SBs in India and 14 percent in China told AMI that they just have not thought about buying PCs.

What can motivate SBs to opt for PCs? Despite these deterrents, a portion of non-PC SBs is still considering buying PCs to automate business processes, improve efficiency and productivity, adhere to business partners' demands, keep pace with competitors and grow the business. “A concerted effort by PC hardware vendors to convince non-PC SBs about the utility of computers and educate them about PC usage can go a long way in clearing the way for computers,” Chakravarty noted.

Courtesy: Access Media International (AMI) Partners

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