'Channels would be the extended arms of Fujitsu'

Your views on Fujitsu's expansion plans in India?

Although Fujitsu has a long track record of serving Indian customers mainly
in the telecom sector, the company never showed any interest in expanding its IT
distribution trade here. One of the obvious reasons that could be attributed for
our late entry into the sub-continent is that we were doing a survey of the
Indian market before instituting direct business processes on this land. Being a
late entrant in the market also meant that we did meticulous planning before
debuting in the market. 

What measures are you taking to establish the company's presence in the
region?

The paramount task in front of Fujitsu India right now is to strengthen our
service capabilities before taking up marketing initiatives. Predominantly,
there are two areas, which we are concentrating on. First is to pyramid manpower
and the second is to tightly weave together the service network across the
country. Soon we will also introduce a pan-Indian toll free number to provide
instant solutions to customer's queries. In order to win brand equity for
Fujitsu in India, we want to invest heavily on brand building activities along
with periodic partner and customer training programs. Partner training sessions
would take center stage, as we will organize technical and product oriented
seminars more often.

How important a role will channel partners' play for Fujitsu in India?
How many business associates are you planning to appoint to kick-start your
business?

Channels quintessentially would be the extended arms of Fujitsu and we will
rely greatly on them to effectively position our products in the market. As
mentioned earlier that Fujitsu had already taken on board Mumbai-based Fujisan
as its national distributor to overlook countrywide sales at tier-1, we will
continue to proceed with the same partnership as of now. Primarily we will
engage 200 reseller partners at tier-2, who would take Fujitsu products to
corporate and retail customers.

The Indian market is already flooded with MNC brands offering IT products.
What is the USP of Fujitsu that would make it stand apart in such a competitive
scenario?

I would like to point out that Fujitsu is not a new brand in the IT products
category. Fujitsu desktop and notebook PCs have already gathered rave review
with the global clientele. The use of biodegradable components is the USP of
Fujitsu. Also, I believe that the Japanese make of Fujitsu products will
certainly add credibility for us in India. Hence, brand positioning would not be
a very cumbersome process for us.

How will the govern-ment's decision to levy 12% excise duty on imported
products affect Fujitsu's business?

It is a good move that Government of India is easing out the path for local
manufacturing companies, but I don't foresee this move affecting MNC brands in
any way. Moreover, the market will take a more vibrant hue, as all players will
have a level playing field. As far as the budget is concerned, it will lead to a
net 5—5.5% hike in the price of products, which would be applicable for all
the manufacturing companies based outside India. 

Retail is the new mantra in the Indian market. How do you plan to cash in
on the retail sector for Fujitsu's growth in India?

Yes, the mushrooming retail sector has caught the fancy of everyone. In
order to cash in on the retail buzz, we will institute at least 50 concept
corners or exclusive Fujitsu brand outlets across the country. To begin with, we
are aiming to target the top 16 metro and mini metro cities to roll out Fujitsu
retail shops. These partners-owned retail junctions would be based on the
international line of Fujitsu retail outlets and would be funded and executed by
Fujitsu.

What kind of business model are you looking at implementing to address the
Indian clientele? Are you also looking at doing business directly?

Fujitsu is a 100% channel driven company and we will address Indian
customers through channel sales only. We plan to adopt a two-tiered channel
distribution model with national distributor forming the level one of the
hierarchy and resellers and retail partners occupying the second stratum.

Anjali Choudhary

anjali@cybermedia.co.in