Epson eliminates national distributors for inkjet business

Epson India has changed its distribution strategy for selling inkjet
printers. Inkjet printers, which fall under the consumer business division of
Epson India, will no longer be distributed by Tech Pacific (now part of Ingram
Micro) and Redington (India), according to top officials from the division.

The company has devised a new channel structure, something similar to the
regional distribution model for moving inkjet printer in the consumer segment.
The new structure will have 11 Epson Business Partners (EBP) serving around
1,300 Epson Channel Partners (ECP) across the country. These ECPs will in-turn
cater to the small reseller, retailers, systems integrators and consumers.

The 11 EBPs are Neoteric Infomatique (for Mumbai and all India), CSS Microsys
(Kerala), Creative Peripherals & Distribution (Mumbai City & Suburban),
Infotech India (North Eastern States), OA CompServe (Delhi & NCR), Pelikan
Office Automation (Tamilnadu and Pondicherry), Ram Chander and Sons (Uttar
Pradesh), Technocrat Infotech (West Bengal, Jharkhand and Orissa), Data Care
Corporation (Pune, Nashik and Aurangabad) and Magnamious Systems (Goa). The 11th
EBP is yet to be finalized.

"The new channel structure for the inkjet business is aimed at
eliminating some of the top and bottom layers of the distribution network. In
this way, we can broad-base the last tier to reach out to a larger number of
customers more effectively," said R Venkatesh - GM, Consumer Products.

R VENKATESH New structure to have 11 Epson Business Partners serving around 1,300 Epson channel partners across the country

Distribution of products like inkjets doesn't require too many distribution
tiers. The new channel structure will reduce a lot of time, money and efforts
that Epson used to put in at the top tier. Funding the last tier will alsobecome
easier. "This type of structure will also allow us to bring uniformity in
marketing operating price (MOP) among all EBPs across the country as we will be
closely working with them," said SM Ram Prasad - Business Manager, Entry
Level Inkjets & All-In-Ones.

Over the last few quarters the company evaluated the performance of all its
Epson Authorized Dealers (EADs) and finally selected 11 strong partners best
suited for selling inkjets. A series of meetings with partners were held before
appointing both EBPs and ECPs. The company has plans to increase the current
1,300 ECPs to 3,000, by the end of this year.

Before deciding on the new channel structure, the company anticipated major
issues that could arise from existing EADs. However, these issues were minimal,
remarked Ramprasad.

By changing its channel structure for inkjets business, Epson officials are
confident that it will emerge as a strong #2 in the inkjet market in India.
"Currently, we hold around 20% marketshare for inkjet printers, we will
increase this to at least 27% to 30% by the end of this financial year,"
added Venkatesh.

NELSON JOHNY

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