"Offering low TCO and a complete solution are the planks that we are using to move ahead"

After spending two years setting up a comprehensive infrastructure, Sharp is
now ready to battle it out in the multi-functional devices space. It has already
enlisted 10 partners to help it garner better mindshare among customers. Sunil
Sinha tells DQ Channels India that Sharp is highlighting the win-win model it
has created for its partners, with a comprehensive service model. It will ensure
them regular revenue for every product sold.

What are your plans for the Indian market?

We are witnessing a convergence in the IT and office automation (OA) product
space in the market. This is largely because the functionalities of these
devices are similar.

Sharp has decided to design its products around the convergence phenomenon.
Our plan is to take the printer vendors head-on with our MFDs, which will have
all the functionalities at cost efficacy. We will promote our concept of lower
total cost of ownership (TCO) over a three-year time frame.

How will you ensure lower TCO?

We are not looking at providing our copier-based MFD solutions to
entry-level users. Our machines will be large-end ones, which will be targeted
at enterprises, who are very conscious about TCO. We have done test runs, which
prove that prints taken from our machines cost 50% lower than those of other
brands, in the longer run. This is true not just for black and white prints, but
also for color. Once we show the customer our calculations, which underline that
they can save up to 50% using our machines, there is no reason why they will not
go for our products. Also, our machines come with a clear-cut definition of the
number of prints that it can output, and this runs true to case, unlike the
claims of other vendors. Also, we can print even on 300gsm paper, which is not
possible with the

machine of our competitors.

Are you going to focus only on MFD sales?

Actually, we will not be selling MFD boxes. We will sell MFD solutions.
Thus, we will sell emailing, documentation, printing, security, accounts
management and various other solutions in addition to our hardware.

One reason we are offering a comprehensive solution is because we want to
reduce our customer's burden when it comes to managing paperwork. Our studies
show that enterprises spend a colossal amount of time daily in collating and
dissemination of information.

Will you sell directly or through the channel?

We will work with corporate resellers to manage sales and distribution of
our products. Our channel structure will be more regional in nature. This means
that we will have partners in various regions and they can procure products
directly from us. We have already started dialogues with several key partners,
who will be a mix of the OA and IT channel.

What are the criteria to select your partners?

We are concentrating on the SME and large enterprises for our products.
Therefore, we are seeking partners who already have a customer base in these
verticals. Our sales and marketing team have already zeroed on some partners and
are talking to them and have already signed up 10 resellers in the metros, so
far.

As
we move into smaller cities, we will have seminars where we invite partners and
highlight our technology. We are also having technical seminars for end-users
where our partners can send customers for education.

For the channel, we are offering them a 5% margin on products. This is not
merely mentioned on paper, but is the realized amount they will enjoy.

What other benefits can partners look forward to when they alliance with
Sharp?

We will use the same channel to sell our consumables. Additionally, we have
a support model, where the partner can service the machine based on the number
of prints taken by the customer. Each of our machines has a meter, which records
how many prints have been taken. Once the meter reaches a low mark, the partner
has to come and replenish the consumable. This is a regular revenue stream for
them and also negates the maintenance of the machine from the customer's mind.

Sharp has been in the country for quite sometime and yet not managed to
create a strong brand recall for its IT products. How will you turn this around?

You are right, we have been maintaining a low profile. We have had to
graduate the internal mindset to focus more on solutions rather than products.
This was not very difficult, as we had a merger with Larsen & Toubro data
products division and most of our current staff is from this company. They are
comfortable with selling technological products.

Also, for the past two years we have been building our infrastructure to
support the quantum of business when we started focusing on sales.

VINITA BHATIA