PC adoption both a challenge and an opportunity
Demand for premium PCs is up in India as consumers are willing to pay more for a better experience, Chandra tells
What are the key challenges the company is facing as consumers have many alternative devices to choose from?
While we are growing strongly across personal computers (PCs) and print segments and categories, PC penetration is India is just above 10 per cent which is much less than developed markets like US and Europe (100 per cent) and China
(70 per cent). Hence, we believe increasing PC adoption remains both a challenge and an opportunity.
However, with the recent improvements in power infrastructure and internet penetration in the country, we expect to see a larger proliferation of PCs in India.
Various initiatives by central and state governments focusing on digital learning will also push it.
HP has undertaken some dedicated programmes in India to support these initiatives. With a focus to em power students in rural areas, we have introduced self contained, internet-enabled and solar powered digital learning labs named“HP WorldonWheels” inpublic-private partnership model aimed at driving digital literacy, e-education, entrepreneurship training and other citizen services.
HowisHP leveraging digital technologies to drive and transform its business? Illustrate with examples.
As the technology and market leader in the printer segment, we are enabling the digital and workflow transformation of various central and state government agencies and large enterprises.
We believe that the digitisation of physical documents and files is a big opportunity area for us. The government is providing a strong push to the conversion of data stored in papers to digital format. This will not only improve public services but also reduce corruption and litigation. HP India is aiding key government departments and public sector undertakings, who still rely heavily on the paper documentation model, to digit is et he ir existing physical records( billions of high risk and confidential documents). We areworkingona projectinBihar whereinweare digit is in gd at a stored in 50 million land record papers at the revenue department. We have won significant projects in West Bengal and Gujarat and expect many more projects to come our way in next few years.
What are the key business verticals that are driving HP's sales in India?
HP continues to be the leader in PC market of India with the highest market share across the segment (30.7 percent in India, Q3FY18, asperIDC). The India PC market is going through a trans format ive phase wherein there is arising demand for premium PCs. It is fuelled by the consumer desire to own and use premium devices, their increased buying power and the willingness to pay a premium for a better experience. Basis these consumer insights, HPhasfocusedon design innovation and introduced the most stylish andbest-performing devices. Ourpremium devices, ledbySpectreand Envyrange, havegot extremely positive responses and now we are leading the premium market segmentinIndia.
Gaming is yet another trend that is gaining strong traction in India. We introduced our gaming portfolio in India in early 2017 with Omen for mainstream and professional gamers and today we are the leading player in the segment. Recently, we also introduced more affordable gaming devices in Pavilion range for casual gamers.
In the printer segment, we are the market leaders in India with a share of close to 45 per cent in Q3 FY18, according to IDC. We saw significant growth in the copier segment, while consolidating our share in other segments — core inkjet and laser. HP’s recent acquisition of Samsung’s printer business has helped in strengthening our A3 copier business in India and in just one year, we have doubled our market share.
In the home printing segment, we are focused on technologies designed for our mobile, digital and social lives to reinvent memories. Sprocket is a great example of how we reinvent the print experience for our lifestyle today. Also, we are providing affordable and hassle-free home printing through innovative products such as ink tank printers.
Computing device segment is seeing intense competition in form and format from mobile devices. What is HP’s response to counter competition?
We believe that mobile devices and smart phones are complementary to PCs rather than competition. In India, we are seeing the trend of smartphone being the first device for consumers followed by a natural progression where they move to PCs.
SUMEER CHANDRA Managing director HP Inc, India