In a bid to reach out to the market in a more effective manner, Xerox India has decided to shift from its direct sales model and totally sell through the channel in the country. From this year, the company has decided to opt out of direct sales and invest instead in relationship managers and account managers to help the channel to reach out to customers in a better manner.

Xerox India's new Office Group Executive Director, Natesh Mani, who was in Pune to attend the general body meeting of the Computer and Media Dealers Association (CMDA), said that the company is in the process of drawing up a channel development program for the developing markets. "India falls under the developing markets, which consist of at least 140 countries. The developing markets contribute $1.7 billion in terms of revenue to the group," he said, adding that the strategy would be declared in a few months.

India contributed revenues worth Rs 500 crore last year and the target is to touch the Rs 1,000 crore revenue mark by 2008. According to Natesh, India presented a large opportunity to the company since it is the second largest economy in the world after China and the company has also chalked out a number of initiatives for the channel.

"The strategy is to drive color and MFDs which is in excess of Rs 100 crore," Natesh asserted. "The office group business is worth Rs 300 crore in India. Xerox´s reach extends across India with 18 regional distributors and over 8,000 resellers. Going through the channel makes more sense since we are targeting large volumes," he added. The company has now invested in 150 relationship managers who would service key corporate accounts and help the channel interface with these.

According to him, Xerox has categorized its products into three groups Office Group, Global services and product systems group. In the product systems group, the company is targeting high-end printing systems such as mobile phone companies and banks. Xerox has signed up with Airtel and Hutch for printing mobile phone bills and credit card statements of ICICI. As part of the global service group, the company offers managed services that include maintenance of machines for corporates and event management as well. The Office group, however, that sells office products, contributes over 70% of the company revenues in India.

Natesh said that the company would launch seven new products in the second quarter and 20 products during the year. While there are plans to launch professional scanners, digital projectors, blank DVDs, CDs and flatbed computer monitors, he said this could take some time since the channel is not yet in place.

Last month, the company opened a call center Ask Xerox that deals with product enquiries from any reseller. A website is also on the anvil for channel partners that would offer a virtual learning environment for select partners. Besides these, they would also have access to various other training programs and webinars to be launched in the next six months.

Natesh also informed that the company plans to launch a sales portal for the channel. In the next four to five months, resellers would be able to access their balance sheets on a daily basis.

Xerox appointed Redington India as its disty with immediate effect. As a part of this agreement, Redington will distribute Xerox's suite of office products that includes laser printers, fax and multifunction devices.

As part of the agreement, which was signed by J S Kulkarni, CEO Redington India and Natesh Mani, Executive Director-New Office Group, Xerox India, Redington will buy products from Xerox India and sell them to channel partners, value added resellers, systems integrators and existing Xerox loyal sales promotion agents.

Natesh said, "Redington India has one of the strongest networks of resellers and offices in the country. The partnership will help extend the reach of Xerox's products to a larger base of Indian IT customers, businesses and consumers."

NANDA KASABE
(CyberMedia News)

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