Intel adopts sub-distribution strategy to push its sales in India

ZIA ASKARI

In a bid to further cement its ties with the channel community, global chip
manufacturer Intel has ventured towards a sub-distribution strategy. This is the
first time that the company has done this and as part of this distribution
associate program, Intel has appointed 12 'Distribution Associates' in order
to expand its business prospects in the Indian region.

Seemingly content channel community has taken this move quite positively. “This
is a good move by Intel. Now we will see a lot more activity from small
resellers and more importantly different schemes of Intel will now be passed on
to these people easily. So, all in all, the overall reach of the company will
increase and for us it would mean more profitability,” informed, Bharat
Bhushan, Director, Aryan Technologies, who is among the new sub-distributors
from Delhi.

According to Intel's official spokesperson, the company launched this
program in order to achieve wider coverage in the market. “By creating this
program we have formalized a business model that existed and was functional in
the market. The distribution associates have been serving the channel in terms
of supplying to broader channel dealers. We see this program formalizing the
relationship. It is our endeavor to reach a broad set of our channel customers
and at the same time the authorized distributors will have the benefit of
additional reach that distribution associates provide,” the spokesperson
added.

Terming this as a move to bind more closely with the channel community,
Ravinder Jain of New Delhi-based PL Computers said that this initiative will
further increase the market reach for Intel as well as give more opportunities
to the channel community in small places.

“There is a global shift that is happening and as part of this, Intel is
focusing more on the channel community. This is a good sign and eventually we
are going to benefit from this move. We will surely increase our presence to
more number of cities and this will generate more business for Intel. Very soon
we will be going to places like Jaipur, Ludhiana and Dehradun,” Jain added.

Discussing the new move Harish Puri, CEO, Computer Empire commented that with
this initiative, the maturity level for global chipmaker has increased to a new
high now. “This will certain give Intel a big advantage in terms of dealing
with the competition. More and more small resellers will feel comfortable doing
business with Intel now and as a sub-distributor we will also be investing more
in terms of putting in place the infrastructure and manpower in order to address
this new opportunity,” he added.

With the channel community in a celebratory mood, industry experts feel that
this move will surely bring in more opportunity for the channel community as
well as increase the strength of vendor-channel bond.

“We all are quite happy about this initiative. Earlier, with the national
distributor approach — it was very difficult for small resellers to push
Intel, especially because the company has so many products and offerings. Now
things will become a lot easier and this will surely increase the company's
marketshare in this region. I am quite sure that now with competition coming in
companies like AMD will have a tough time. As part of this, we would be looking
at investing in terms of manpower as well as infrastructure,” explained, Vinay
Dugar, MD, Supreme Technologies.

Winning more channel hearts across the region, this initiative is seen by
many as a positive way to involve the channel community in a more proactive
manner.