Recovering with Dell

Sogo Computers

Sogo Computers is on the road to revival marking an 18 percent growth in its consolidated revenue. With the slowdown era nearing an end down-south,
the distribution scenario in the region seems to be on a recovering mode.

In the last ranking in the Silver Club, Sogo Computers had declined by over 27 percent, pulling it down by 9 ranks. However, the slowdown was alone not to be blamed for the decline in the last ranking. The company had previously invested a lot over its wide chain of retail outlets of which it had shut down a few amounting to proportionate losses.

However, last FY, with Dell stepping in as the prime vendor for Sogo, the company has revived although at a lower pace than the prominent southern players. Dell signed a strategic partnership with Sogo making it Dell's master franchisee. Under this agreement, Sogo was also appointed as regional distributor and direct retail partner. The company now intends to ship Dell products through at least 200 of its partners in Karnataka besides plans of moving over to a hybrid model with uni-brand stores and multi-brand stores to stay profitable.

With a claim of having more than 1,000 channel partners across south India, the company is estimated to have 18 branches across south. Sogo Computers have also set up its own subsidiary company called Sogo Synergy that focuses on software services both for local and international markets. However, last FY, the only success Sogo had with its list of vendors and its strategic programmes was with Dell with the vendor contributing to most of the 18% revival of fortune for Sogo Computers.

As part of the company strategy, Sogo Computers is seemingly choosy about the vendor tie-ups preferring top brands in the industry. However, this has not paid off well for Sogo Computers in the topline whereas, the partnership with Dell has increased its bottomline.

Highlights

• Appointed affiliates across Karnataka to sell Dell products
• Started new uni-brand stores and multi-brand stores