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

Business Standard - - STRATEGY - Sangeeta Tan­war

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

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