Dell India to double its store count this year too to reach 800

Dell India's sales of servers and storage have seen a consistent rise in the last two years. Last year, it had doubled to touch 400. This year too, it plans to double its store count to hit 800 even as its rivals, IBM and HP have been pulling back from th
Dell India to double its store count this year too to reach 800

Dell, the computer hardware company plans to double the count of its stores in India taking it to 800 in 2015 seeing its growing sales and market share in the country. It plans to do this with the help of its channel partners.

In the last two years, Dell India has seen an increase in the sales of servers and storage, according to a report by consultancy IDC India. Its contemporaries IBM and Hewlett-Packard have pulled back from this market. IBM sold off its server business to Lenovo while Hewlett-Packard has made a decision to split into two companies.     

"I would not attribute all our growth here to competition pulling back," Alok Ohrie, president and managing director of Dell India, said. "We've created a new go-to-market strategy and that, and our end-to-end offering, has helped more," he told ET.

Each year Dell India has been doubling its number of stores. Last year, it had doubled to touch 400.

"Most of our sales in the client space (laptops, desktops, and tablets) come from bricks-and-mortar shops - large retail formats. So we are continuing to increase our Dell format stores. We will double the number of stores this year as well," Ohrie said.

He said online sales - whether through eCommerce websites or through the company's own website - were still in the single digit range, as a percentage of sales.

Dell also aims to focus on the enterprise segment.  Around 35% of Dell's enterprise sales last year came from channel partners. The firm is expecting that the  proportion will increase in the coming years. 

"This year we expect channel sales to go up 40-45%. In the near-term, two-three years, we think that number will go up 50%," Ohrie said. Through channel sales, Dell’s penetration has increased into smaller accounts in Tier 2 and Tier 3 cities.

For expansion, all large technology related companies have been focusing on smaller towns and cities. A research firm Zinnov estimates that small and medium businesses are likely to spend more than $11 billion on IT this year.

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