Savreen Gadhoke & Surbhi Chawla explain why today, dealers are the new kings...
Consumer is king – that statement sounded clichéd for sometime; today it stands challenged! It’s the era of the dealer, and pampering them is what the companies are doing best, especially in the face of the festive season… In May 2009, consumer electronics firm, Asus rewarded its top performing 30 dealers across the country by taking them for a week-long trip to Bangkok. Their stay was arranged in a top-quality five-star locale and a visit was also arranged to Asus’ service-centre in Bangkok. This year too, Asus has decided to take its high performing dealers to an all-paid foreign trip, though the destination has not been finalised yet. There is Samsung too, which offers its mobile handset dealers a trip to South Africa, Dubai, Bangkok, et al, if they purchase 30 units of a particular handset of one model. The offer comes down to a refrigerator for purchasing 20 units. The company also offers a Honda Jazz to big dealers if they purchase products worth Rs.32 lakh.
A Bhubaneshwar-based dealer of electronic appliances dealer also shares his experience of travelling to Europe for having successfully sold 200 LCDs of a company. This is just a snapshot of how big consumer electronics and durables giants are wooing their dealers to improve upon their sales, particularly during festive seasons. The stakes are really high this time around, as the previous year wasn’t really something to cheer about. The past two quarters (Q4, 2008-09 & Q1, 2009-10) have been disheartening in terms of sales. And with Dussehra & Diwali falling in two different months this year, consumer durables & electronics companies are quite excited about both months being high-growth and activity-laden. Shantanu Dasgupta, VP, Corporate Affairs & Strategy – Asia South, Whirlpool, confirms, “We are hoping to register a 35-40% growth over last year and are aiming for sales revenues of around Rs.600 crore during this festive season alone...”
The high optimism reflected by these white goods entities has a strong footing. According to the most recent Nielsen Global Consumer Confidence Survey 2009, Indian consumers have a good perception about personal finances and job prospects, which reflects in their willingness to spend on discretionary items. The survey reveals that 39% of Indians think that it is a good time to make purchases. Encashing upon this opportunity, sellers are leaving no stone unturned to make sure their cash registers ring in this time; and to this end, a host of consumer schemes are being launched – like Sony’s ‘Zero Percent Finance Offer’, Haier’s ‘Bhagya Lakshmi Festival Promotion Offer,’ et al.
In order to achieve their revenue targets, it is imperative for companies to not only launch consumer discount schemes, but also trade schemes (dealer incentive programs). Also, with the 6th Pay Commission hiking salaries of those in the public sector by releasing Rs.16,000 crore, manufacturers and retailers are hoping to pocket at least 10-15% of that amount. But what is it that makes the dealers and modern retailers (like Reliance Digital, X-cite, Croma, et al) such an integral part of the entire value chain and how do companies keep them happy?
For more articles, Click on IIPM Article.
Source : IIPM Editorial, 2010.
An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
The Sunday Indian:- B-SCHOOL RANKING SCAMSTERS EXPOSED!
For Exclusive Footage by Sunday Indian Click Here
Outlook Magazine's B School Ranking Scam Exposed
Don't trust the Indian Media!
IIPM ISBE Programmes
Follow Arindam Chaudhuri on Twitter
IIPM B School on Twitter
Management guru Arindam Chaudhuri’s latest blockbuster book, Discover The Diamond In You
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IIPM, GURGAON
IIPM 3-year full-time Integrated (MBA BBA) Programme
IIPM 2-year full time Programme (leading to the award of the MBA degree from IMI)
B-schools expect higher rate of campus placements this year
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Consumer is king – that statement sounded clichéd for sometime; today it stands challenged! It’s the era of the dealer, and pampering them is what the companies are doing best, especially in the face of the festive season… In May 2009, consumer electronics firm, Asus rewarded its top performing 30 dealers across the country by taking them for a week-long trip to Bangkok. Their stay was arranged in a top-quality five-star locale and a visit was also arranged to Asus’ service-centre in Bangkok. This year too, Asus has decided to take its high performing dealers to an all-paid foreign trip, though the destination has not been finalised yet. There is Samsung too, which offers its mobile handset dealers a trip to South Africa, Dubai, Bangkok, et al, if they purchase 30 units of a particular handset of one model. The offer comes down to a refrigerator for purchasing 20 units. The company also offers a Honda Jazz to big dealers if they purchase products worth Rs.32 lakh.
A Bhubaneshwar-based dealer of electronic appliances dealer also shares his experience of travelling to Europe for having successfully sold 200 LCDs of a company. This is just a snapshot of how big consumer electronics and durables giants are wooing their dealers to improve upon their sales, particularly during festive seasons. The stakes are really high this time around, as the previous year wasn’t really something to cheer about. The past two quarters (Q4, 2008-09 & Q1, 2009-10) have been disheartening in terms of sales. And with Dussehra & Diwali falling in two different months this year, consumer durables & electronics companies are quite excited about both months being high-growth and activity-laden. Shantanu Dasgupta, VP, Corporate Affairs & Strategy – Asia South, Whirlpool, confirms, “We are hoping to register a 35-40% growth over last year and are aiming for sales revenues of around Rs.600 crore during this festive season alone...”
The high optimism reflected by these white goods entities has a strong footing. According to the most recent Nielsen Global Consumer Confidence Survey 2009, Indian consumers have a good perception about personal finances and job prospects, which reflects in their willingness to spend on discretionary items. The survey reveals that 39% of Indians think that it is a good time to make purchases. Encashing upon this opportunity, sellers are leaving no stone unturned to make sure their cash registers ring in this time; and to this end, a host of consumer schemes are being launched – like Sony’s ‘Zero Percent Finance Offer’, Haier’s ‘Bhagya Lakshmi Festival Promotion Offer,’ et al.
In order to achieve their revenue targets, it is imperative for companies to not only launch consumer discount schemes, but also trade schemes (dealer incentive programs). Also, with the 6th Pay Commission hiking salaries of those in the public sector by releasing Rs.16,000 crore, manufacturers and retailers are hoping to pocket at least 10-15% of that amount. But what is it that makes the dealers and modern retailers (like Reliance Digital, X-cite, Croma, et al) such an integral part of the entire value chain and how do companies keep them happy?
For more articles, Click on IIPM Article.
Source : IIPM Editorial, 2010.
An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
The Sunday Indian:- B-SCHOOL RANKING SCAMSTERS EXPOSED!For Exclusive Footage by Sunday Indian Click Here
Outlook Magazine's B School Ranking Scam Exposed
Don't trust the Indian Media!
IIPM ISBE Programmes
Follow Arindam Chaudhuri on Twitter
IIPM B School on Twitter
Management guru Arindam Chaudhuri’s latest blockbuster book, Discover The Diamond In You
IIPM - Admission Procedure
IIPM, GURGAON
IIPM 3-year full-time Integrated (MBA BBA) Programme
IIPM 2-year full time Programme (leading to the award of the MBA degree from IMI)
B-schools expect higher rate of campus placements this year
IIPM B School : King Khan, Bollywood Badshah and Quiz Wiz — that’s Shah Rukh Khan for you
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