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Acer rides high on retail expansion
 
Indiantelevision.com Team
(20 February 2006 2:00 pm)
 

BANGALORE: Acer, one of the leading vendors in the PC market, has announced that it has witnessed substantial growth in their retail business during 2005. The company claims that, during the period, its retail footprint grew by 50%, to over 200 retail outlets in over 80 cities across India.

 
 

Acer, in an official release, adds that it increased the number of exclusive Acer malls to over 80 malls in 50 cities across the country in 2005.

Among the product categories, the notebooks & display segment posted over 800 per cent growth year on year via retail, desktops shipments grew by over 200 per cent via retail and projectors as a new category grew by over 50 per cent quarter on quarter since it was introduced via the retail channel in JFM 05. In 2005, retail accounted for 25 per cent of Acer's total sales and contributed upwards of 60 per cent of total consumer focused sales, states the release.

 
 

The introduction of a number of new products into the channels like servers, TFT monitors projectors and home cinema centers, contributed significantly to the growth. Average sales per outlet witnessed a three-fold growth in 2005 compared to 2004, the release adds.

Other contributing factors to the growth, as per the company:

1) The quarterly schemes conducted by Acer across the country for its retail channel.

2) The quarterly retail conferences where top retailers from across the country are taken to exclusive locations where significant interactive sessions are held with Acer management.

 
 

Going forward in 2006 Acer plans to increase their sales revenues from the retail segment to 40 per cent by doubling the retail infrastructure to over 400 retail stores and increasing their spread to over 160 cities and towns across the country. Acer is looking at a balanced geographical coverage in A&B class cities by targeting high-density zones within the city, which do not have competing retail outlets. With a focus to ramp up their operations in key up country markets, Acer has identified 75 new locations in C and D category cities.

According to Acer sales & marketing, mobile & display S. Rajendran, "Retailing presents a unique opportunity to communicate more interactively with its stakeholders- the consumers. Channels continue to be a major contributor to Acer's success worldwide. Retail has been one of the biggest success stories for us in the last one year. It has helped us to reach out to end customer in an effective and interactive manner. Product growth via retail in each of the categories has also been an important factor for Acer's success. The focus in 2006 will be to grow with our existing partners at an even spread without cluttering the market."

 
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