EFY Times  
Saturday, August 23, 2014

 
GO
 
 

Consumer Electronics Distribution Is Not Structured: Inspan Infotech
 
Home >> Infotech >> Interviews
 
Consumer Electronics Distribution Is Not Structured: Inspan Infotech  
 
Distributors need to educate their channel to be able to handle this challenge.   
Rate this news:  (1 Votes)
Thursday, July 19, 2012 Inspan Infotech, a consumer electronics and IT distributor, has been in the business for about 14 years. It has 17 branch offices and works with over 100 system integrators and 5,000 channel partners. The distributor has plans to focus on consumer electronics (CE) distribution, as it wants to develop and increase its market share through CE. EFYTimes spoke to Sudhir S, managing director, Inspan Infotech, to know about the current state of the CE distribution and ways to handle the prevailing foreign exchange fluctuation in the market.

Inspan Infotech, distribution, distributor, channel, consumer electronics, Sudhir S, managing director, foreign exchange fluctuation, market fluctuation, challenges, profit margins, Genius, mercury, inverter, tablet, security solutions, channel partner,




Tell us about Inspan's business.

Sudhir S: We are into distribution of IT products, along with consumer electronics, security and surveillance, and lifestyle products such as tablets and designer tablets. We sell security and surveillance products for shops, bungalows and apartments. We even sell Mercury tablets along with inverters, which come under CE category.

We have also been associated with the Genius brand. It manufactures cameras, speakers and other CE products for more than five years. We are the largest distributor for Genius in the country.

What are the kind of schemes you come out with for your channel partners?

Sudhir S: We come out with quarterly schemes for our channel partners. For each product line, we get along with the vendor and launch a scheme for our partners. Mostly, we take our partners to foreign countries such as Thailand, Singapore, Malaysia and others. We also give them white goods and other similar items as part of quarterly schemes.

How do these schemes impact the sales?

Sudhir S: These schemes do improve the sales. There is a month on month and quarter on quarter increase in our sales. For example, last quarter, we aligned three partners in some city. This quarter, we aligned one more partner and at the end of the quarter, we hope to see huge sales. Sales are always huge in the last two to three days of the quarter, since the channel partners also have to achieve their incentives.

Our sales increase by around 25 per cent minimum on an average every quarter. For Genius, our sales increased by 29.3 per cent last quarter.

What are the major pain points in CE distribution?

Sudhir S: We do face some challenges and hurdles while carrying out the distribution for CE products. The main problem is directly connected to the end users. So, we have to work together with the vendors and support them, else it can back fire on us on material sales.

Another problem is that technology keeps changing very quickly. There are chances of prices of a new product dropping within a few weeks. We have to be quick when dealing with CE items. We need to understand the existing market and adapt ourselves according to the forthcoming technology. The same product cannot be sold next month as the technology gets upgraded by that time. Hence, we need to keep upgrading ourselves.

Since, there is a lot of voltage fluctuation in cities, products like inverters and security solutions need to be upgraded often. We have suggested suppliers to provide us with inverters that have in-built stabilisers. If customers report any issue with inverters, we have to give them standby inverters till they get a replacement. So, we are asking the solution providers to provide inverters with stabilisers so that we can upgrade ourselves as well.

As you are directly connected to end users, you have to take care of after-sales services as well. Do you provide after-sales services on your own or is the vendor also involved?

Sudhir S: The vendor provides the after-sales services, but we have to co-ordinate with him. Our import label is mentioned on the box of the product. We have a separate support team, which takes calls, connects the users to the vendors, follows-up on the service and ensures that the customers' problem is solved. That is a value addition we provide to our customers.

In CE distribution, the first layer of the dealer segment is organised, but the second and third layers of the distribution are not organised. That channel does not bother to get in touch with the manufacturer. They will directly get in touch with us even if we do not offer after-sales service for the brand, but being a seller, we cannot ignore such calls. So, we have put in manpower to handle such calls, which is a huge exercise.

CE distribution is not structured yet and it is a big challenge for us. We are trying to meet this challenge by educating our channel.

Have your margins been affected owing to the current foreign exchange fluctuation?

Sudhir S: Margins are not very healthy as of now, owing to the foreign exchange fluctuation. It was a better margin about an year ago.

How has CE distribution been affected of late?

Sudhir S: It has been badly affected as we have seen 5 to 28 per cent of exchange fluctuation in a very short span of time. The margins are definitely not in double digits. When the margins are in single digits and fluctuation in double digits, the situation is difficult. By the time we go to the market after importing the product, the price becomes totally different. By the time we pay back the money, the dollar rate is different. So, we are facing a lot of road blocks.

How are you coping with the situation then?

Sudhir S: There is clearly no method to safeguard against the forex losses. Nobody had predicted such fluctuations in the market. We have to be in the business, use the opportunities, and try and make better margins elsewhere.

Have you reduced margins for your channel partners as well?

Sudhir S: Our margins are definitely slashed due to the forex fluctuation. People who buy products in rupees, like the channel partners, might not feel the real pain. Rather, they are at an advantage.

If they stock and sell, they have an advantage as the prices increase. Prices have increased for all products. The landing price has also increased because of local currency depreciation. If the channel has something in hand, they can probably sell at a higher rate and make more margins. For the channels, who are stocking and selling, it is a big opportunity.

Upasana Rajpal, EFYTIMES News Network


Print Email Post Comment 
(Total Views: 2166)
 
Share

 
 
Infotech News
   
India Data Card Market Registered An Annual Shipments Of 6.72 Million Units For The Year Ending June 2014.
QinetiQ Completes Acquisition Of Redfern Integrated Optics
Avis India Launches New Car Rental Website
MobiKwik Introduces India’s First Mobile Money Transfer Service
Hacking A Living Room: Kaspersky Lab Researcher Finds Multiple Vulnerabilities In Popular Connected Home Entertainment Devices
 
 
 
     
     
     
     
     
     
Most popular
 

Daily

WidePoint And LG Electronics MobileComm, USA, To Exhibit Together At AT&T Cyber Security Conference
Konica Minolta Launches New Branch Offices In Chennai
Creative Realities And Wireless Ronin Technologies Announce Closing Of Merger
Jibe Mobile Named CTIA Startup Lab Finalist For Next Generation Cloud-Based IP Communications Services
Research And Markets: Ceramics Market Shares, Strategies, And Forecasts Report 2014 To 2020
AirWatch Announces Partner Sponsors For AirWatch Connect Atlanta 2014, The Leading Event For Enterprise Mobility
Eikin Debuts As A Premium Electronics Accessories Company
IMI Establishes Metro Detroit Office To Serve Growing Automotive Business
Casio Puts The Cool In Back-To-School With Colorful Math Technology
Cadence Introduces Voltus-Fi Custom Power Integrity Solution, Delivering Foundry-Certified SPICE-Level Accuracy For Transistor-Level Power Signoff
 
   

Weekly

Linus Torvalds Still Wants A Desktop!
8 Most Useful Tips For C++ Programming
Top 10 Apps For Best Productivity On Linux
Munich Takes A U-Turn! Plans To Switch Over To Windows From Linux
Learn To Compile And Run C/C++ Code In Linux: 10 Steps To Follow
17 Awesome OpenSSH Hacks You Must Try!
Indian Develops Replica Of Google Glass At Rs 4,500
Ebola Virus Spreads As Epidemic Across The Globe
M-Theory Group Appoints New Executive Chairman Of The Board
15 Less-Known CSS Tools You Would Love To Apply
Apple iPhone 6' Leaked Images Show 5.5-Inch Display Panel, Battery
Lava Iris X1 With 8GB Internal Storage Launched @ Rs 7,999
Want To Make The Most Of Your Tablet PC? Try These Accessories!
8 Tips To Make Life Smoother For Programmers
Flipkart May Face Rs 10,000 Million Penalty For Violating FEMA
Xiaomi Mi 3 Debacle: Flipkart Cancelling Orders Automatically!
 
   

Overall

Features
18 Most Well-Paid Jobs in Google
Are you thinking to make a career in Google? Here are some of the best options which you can bank upon sincerely....
15 Less-Known CSS Tools You Would Love To Apply
Move on from your basics, like Firebug and Web Developer, and try something new with the following tips....
17 Awesome OpenSSH Hacks You Must Try!
Learn some new tricks to enhance your knowledge about OpenSSH which will hep you a lot....
8 Tips To Make Life Smoother For Programmers
Dream to become a great programmer? We are here to help you with some non-technical tips to make that happen....
15 PHP Security Best Practices On Linux
Stay secure from unwanted PHP attacks. Here are the commands to help you out....
Learn To Compile And Run C/C++ Code In Linux: 10 Steps To Follow
Move on from MS-Windows and create C/C++ programs on Ubuntu Linux. We are here to help you....
30 Useful Tips to Give You Better FreeBSD Experience
Using FreeBSD takes a new turn for you as we provide with some of the best tips and tricks here....
Indian Labour Class Needs To Be Improved In MSME Sector, Says Government Official
If India is to be developed as an all-rounder, then it's necessary to think about the main ingredient of our industry, the labour class....
Top 10 Apps For Best Productivity On Linux
If you have been waiting for some best solutions to improve your productivity level, you are at the right place as we have listed some of the best app...
8 Most Useful Tips For C++ Programming
Mastering C++ can be an easy task if you have the right 'guide' at hand. We are there to help!...
KDE Releases First Bugfix Update To Plasma 5
Although Plasma 5 is still in early stages of development lacking many features, it is still quite useful a resource for a majority of users....
Ways To Use Linux To Fix Your Windows PC
Linux can be used to solve many Windows problems, here are a few!...
BitTorrent & Privacy Basics For You!
We give you some tips on maintaining your privacy and security while using BitTorrent....
Shell Scripting Basics For Newbies!
Before you get started with Shell Scripting, there are some basics that you should know....
Here Are 5 Serious Flaws In An Otherwise Secure HTTPS-SSL
It is quite possible to compromise a 'secure' HTTPS communication. Although it is any day far ahead than what HTTP has in store, HTTPS is clearly not ...
 
  View All
Dialogue
 
10 Questions That Google Never Asks While Hiring!
Here is a list of 10 questions that Google just banned from their interviews....
For Enjay, Open Source Technology Is A Way Of Life
An entirely open source-based company, Enjay IT Solutions, has built itself a reputation in the OSS domain....
Switching To Tizen Doesn’t Mean We Are Abandoning Android: Samsung
The company has worked to build Tizen up from scratch and has now introduced it to developers and the general public with its latest range of wearable...
Venturing Into The Cloud? Develop A Customised Cloud Strategy First!
Diksha P Gupta speaks to Rushikesh Jadhav, cloud evangelist, ESDS Software Solution Pvt Ltd, on how the cloud has changed the way compan...
HTC Is Strong And There Are No Plans Of Sale Now Or In Future, Says HTC's Senior Director-Marketing
Atithya Amaresh from EFYTimes had an exclusive chat with Sirpa H. Ikola, senior director, Marketing, South Asia, HTC about its devices and its plans w...
   
  View All
Videos
 
First Look: LG Optimus G
The phone sports a high-end display and comes powered by a powerful processor. ...
Create QR-Codes For Free
TEC-IT releases the freeware QR-Code Studio to provide a quick and convenient way of QR code creation for every application scenario....
DoT Secretary Shares Plans For Growth Of Telecom Sector
M.F. Farooqui has recently taken charge as secretary, Department of Telecom....
Hands-On: Sony Xperia Z
Xperia Z is Sony's first entrant model in the big-screen smartphone category. ...
Hands On: Videocon A30 Smartphone
Videocon, the consumer electronics company which is known for its refrigerators, washing machine and air-conditioner has unveiled its Android-based sm...
   
View All
   
 
MWC 2014
 
MWC 2014: Tablet Lets People Feel Textures On Its Screen
Now feel what you see on your tablet, by way of ultrasonic waves....
MWC 2014: 4K Android Tablet Games To Kill Consoles, iPad
Tablet makers like Samsung want to beat the iPad by making 4K tabs. ...
MWC 2014: This Vodafone Backpack Helps Get Network In Disaster Situations
Two engineers of Vodafone New Zealand displayed the "mini" mobile network by Vodafone substructure in a backpack. ...
MWC 2014: Wilocity Chipset To Bring 'Lightening' Speed To Mobile Phones
Wilocity has developed a WiGig chipset for mobile phones that will bring lightning-fast wireless capability ...
MWC 2014: Samsung Introduces Octacore, Hexacore Chipsets
The Korean giant, Samsung unveiled two new octacore and hexacore chipsets at MWC 2014, in Barcelona. The company previously used Exynos 5 Octa 5410 ch...
MWC 2014: Alcatel Unveils PIXI 7 Tablet With Android 4.4
Alcatel arrived at the MWC 2014 with yet another low cost Android tablet, priced at $110 ...
MWC 2014: LG F70 Unveiled With Android 4.4
LG announced the new LTE-enabled Android smartphone, LG F70, at MWC 2014 in Barcelona. ...
   
View All
   
 
Events
 
19th Consumer Electronic Imaging Fair To Be Held On ...

View All
   
   
 
 

home archives contact us advertise with us
           
Magazines Portals Directories Events News Verticals Educational Institute  
Electronics for You
Open Source for You
Facts for You
Electronics Bazaar
electronicsforu.com
efytimes.com
opensourceforu.com
electronicsb2b.com
Electronics Annual Guide
EFY EXPO INDIA
EFY EXPO WEST
ELECTRONICS ROCKS
EFY Awards
OSIDAYS Expo
Electronics
Infotech
Linux & Open Source
Consumer Electronics
Science & Technology
BPO
EFY Techcenter 

Educational Kits
Kitsnspares.com
 
 
© Copyright 2014 EFY Enterprises Pvt. Ltd.
All rights reserved. Reproduction in whole or in part in any form or medium without written permission is prohibited.
Usage of the content from the web site is subject to Terms and Conditions