We will stick to regional distis for volume products

Initially Zyxel failed to create an impact in the Indian market, but now
they are back with a renewed focus on SOHO and SMB segment. Rakesh Singh
elaborates about the company's new channel strategy

Why didn't Zyxel get noticed earlier?

Although we have been in India for the past 15 years we were not that
actively involved in various segments. We began our worldwide operations in 1989
and for the last 15 years the company was present in India through Bengaluru-based
Mrotek. Zyxel offers a wide range of products in telco and enterprise space.
Since most of our products were deployed with telco customers or Internet
service providers (ISPs) we were not popular at the end-customer level.

We have realized the importance of tapping the fast emerging SOHO and the SMB
market and hence there is a renewed focus on these and to have a channel plan in
place. We have understood that it is not possible for the company alone to make
products available everywhere and hence we are taking the channel route. We need
to have a large and friendly channel network and place our product across India.
Besides, Zyxel has other plans, which are related to setting up a manufacturing
plant in India.

So when will Zyxel set-up a manu­facturing base in India?

At the moment discussions are on and we cannot disclose details. The reason
we decided to open a manufacturing set-up in India was because business has been
expanding and it also makes sense to have your own local manufacturing plant.
Discussions are on with various state governments and the one that offers
maximum incentives will see us set-up a manufacturing unit there. Even on the
R&D front we might invest heavily but all this will depend on the amount of
business we are expecting and the kind of manufacturing line we set-up.

What are your plans for the channel?

At the beginning of the year we resolved to conduct a total of 10 channel
meets covering the major business cities accross India. The first one that was
held in Bengaluru was a great success. The participation from partners was more
than what we had expected and that gave a major boost to our confidence. We have
realized that the market is ready to accept Zyxel and wants to know more about
us.

Continuing with the series, we recently concluded our second channel meet in
Delhi. We had expected only about 150 partners to turn up but more than 250 of
them participated. The theme was 'Power up your business with Zyxel.' We also
held technology presentations so that partners could enhance their technical
know-how about our products further.

What are your plans in terms of channel policy and expansion?

Zyxel has very ambitious plans for the channel. We will be expanding our
regional distribution model shortly.

We wish to have regional distributors in each state capital in India because
we understand that they (regional distributor) are capable enough and well
equipped to understand the local market flavor. Besides they are also in a
position to give proper training and services to the local market which at the
moment we think the national distributor may not be able to do. We already have
regional distributors in Gujarat, Maharashtra and Delhi among other regions.
This fiscal we plan to appoint regional distributors in Punjab, Haryana and
eastern regions like Assam, Haryana, Bihar, etc.

We are looking for a couple of value-added distributors who can play a
national role. But as far as volume distribution goes we will be confined to
regional distributors only. This is the channel structure Zyxel wants to follow.
We want regional distributors who can concentrate on our volume products like
broadband and ADSL routers.

Pooja Sharma

poojas@cybermedia.co.in