"The India SMB sector is en route to becoming an extremely potent force within the Indian economy; yet it may seem surprising to many that a huge majority of this segment (roughly 65 per cent) still manage without owning a single computer," said Dev Chakravarty, senior analyst, AMI-Partners.
The demographic analysis of SBs without PCs reveals that a huge majority; above 90 per cent of them are quite small and fall within the 1-9 employee category. The vertical breakout indicates a skew towards the wholesale/ retail sector that makes up 55 per cent of the universe. The non-PC SB segment is also growing quite fast and displaying a healthy economic trend. More than one third of them mentioned hiring plans in the next 12 months and over three quarters experienced revenue growth last year.
"Non-PC SBs are gradually realising that computerisation and automation is the first step towards managing rapid business growth – this probably explains a shift towards PC-purchase plans. Pressure from ecosystem players like customers and suppliers as well as an urge to outshine competitors are some other key drivers behind PC purchases in the next 12 months," added Chakravarty.
According to the study, the adoption plans of these first-time PC buyers add up to a likely planned shipment of 1.6 million PCs in the next 12 months. Even if a small fraction of these purchase plans is translated into actual practice, this is going to boost the overall PC installed base and PC penetration within the nation to a significant extent.
When asked about their channel preference for future PC purchase, 57 per cent of non-PC SBs preferred the local retail store. Retail offers many advantages, e.g. convenient options of buying over the counter and scanning through the available brands and models – thus providing a chance to weigh the pros and cons of each.
"However, an interesting trend is also the rising popularity of local resellers/ system builders/ box-pushers (also known as value-added resellers, or VARs) as a preferred channel – mainly due to their personalised service and support. Non-PC SBs need considerable hand holding in the initial stages, in terms of installation and occasional troubleshooting. And herein lies the utility of VARs," concluded Chakravarty. |
