PC-maker Acer to rev up consumer business segment

Laptop, PC and tablet-maker Acer, is targeting a seven-to-eight fold growth over the market average in its consumer (PC) business. Growth will come with the company riding on product innovation, revamp of sales force and aggressive retailer incentive plans.

The consumer business, which also include convertible tablets, caters mostly to retail sales. Business in this segment has been slow moving, witnessing an average annual growth of 4–6 per cent (for the industry), sources said.

According to Chandrahas Panigrahi, Senior Director – Consumer Business, Acer India, the company has, in the second half of 2015 (July to December), seen a 70 per cent higher growth in sales, compared to the first six months.

Currently, it has a 15 per cent, market share here in the country.

“We intend to grow faster than the market. We are targeting a 7-8 time growth in the consumer business segment,” he told Business Line. The target, he said, is to gain market share from competitors. Something, that it is already witnessing now. While the company has been working on its product line to increase the bouquet of offerings, it is also looking at easy financing options (EMI schemes) and inclusion of ‘value additions’ like JBL branded head-phones.

One of the significant steps over the last six months has been re-organising its sales force into various verticals. Previously, there was one sales team for all segments.

The categorisation comes in the form of modern retail, another for online platforms and different sets catering to general trade (mom-and-pop stores) and brand outlets. Panigrahi explains that the requirement of each customer across these formats is different. Hence, the same sales force will not be catering to them.

For example, a person walking into a standalone outlet or brand store expects a specific product or to see the overall range. Hence these will be stocked accordingly. Another walking into a modern retail format will be comparing between competing brands before making a purchase.

“The idea is to be present in places where the customer makes the purchase decision and convert the same into sales,” he explained. Sales force is being trained accordingly too. Plans are afoot to increase the single brand outlets to 100 plus by early April, up from the existing 50-odd.

Interestingly, Acer is also going aggressive on ensuring higher retailer margins.

“We have made retailer margins exciting,” Panigrahi said, adding that increasing return on invested capital (ROIC) has been the focus. Sources indicate that under the new the concept, returns for a partner store (or franchisee) is said to move up by 1.6-1.7 fold; thereby making it a more attractive proposition to sale the offerings.