Laptops - the new rage
Statistics available on the laptop market in India reveal that the market is growing in full swing. Various factors have contributed to the growth of the laptop segment. Through this article Pallavi Majha journeys through the Indian laptop scene, examining the reasons for the boom in notebook sales Over the years, India has emerged as one of the fastest growing countries for laptops. Today, global brands such as Toshiba, IBM, Dell, HP and Acer, among others, are common names in the growing Indian market. With the growth in the PC industry, laptops have registered record sales in 2005, with computer buffs switching from desktops to notebooks. Laptops are completely portable, use less power and make less noise, though they are often a little slower and have less graphics and sound processing power. But these shortcomings are too small for most users to notice. Indians have started purchasing laptops, also called notebook computers, in a big way, thus, giving their sales a major hike. High productivity, ease of use, mobility and declining prices has made laptops a rage among executives, high-fliers, entrepreneurs, travel buffs and even academics. Growth of Indian laptop market Indians have started purchasing notebook computers faster than the industry would had thought. Notebook sales grew at 94 per cent in the first half of the fiscal year 2005-06, according to Manufacturers' Association for Information Technology (MAIT). During the first half of the current financial year, Indians bought nearly 1.53 lakh laptops. The reports revealed that the momentum in the Indian laptop market is finally in sync with the global trend, where for the first time in 2005, notebook sales surpassed desktop sales. India's personal computer market is undergoing a major transition as premium notebook computers are being brought to the mainstream at almost half the prices, compared to a year ago. Whether it is a growing craze or the emergence of a new breed of technology-conscious IT users, or both, a shift is noticed in the working styles. And the need for anytime-anywhere access to information is pushing laptop sales to new heights in India. Led by the enterprise and corporate segments, laptops have begun to invade even the SOHO (small office home office) market due to their convenience in terms of portability, flexibility and adaptability. Factors for increased laptop sales Considering the figures available, laptops in India have recorded a tremendous increase in sales. Some factors responsible for this are as follows: Desire to possess the latest: There is a growing desire among the people in India to possess the latest gadgets. The IT-enabled workers or back office workers do not want to work in an old-fashioned office anymore. Similarly, many financial and marketing sector professionals also want to change the way they work now. Emergence of technology-conscious IT users: The is a growth of new professions that not only require different working styles, but also mobile devices for anytime- anywhere computing. Affordability: The purchasing power of Indians has increased over the years. As a result, Indians are ready to spend more in contrast to their earlier habit of saving money. Government policies: The government now allows duty-free import of notebooks as personal baggage. This has helped in increasing notebook penetration and the people becoming more aware of them. Also, the government's focus on improving IT infrastructure has brought in technologies like wider wireless network (WAN, WiFi), which allows linking up of mobile devices to the internet at any place. This facility is another factor for increased laptop sales. Reduction in prices: On an average, the prices of entry-level notebook computers now range between Rs 38,000 to a little over Rs 50,000, approximately, compared to Rs 75,000 to over Rs 1 lakh that prevailed a few months back. SME's requirement: Consumption by small enterprises grew 118 per cent accounting for 17 per cent of the total notebook sales to the business segment. Sales to medium-sized enterprises grew by 136 per cent accounting for 21 per cent of the total notebook sales. Growth of new professions: The growth of various new professions in IT, marketing, web designing, advertising, etc, has led to the increase in the sale of laptops in India. Lucrative market: With Europe and US markets reaching a saturation point, Asian countries are expected to be the growth market for laptop sales. Competition from international laptop brands Though it is party time for laptop vendors in India, national laptop brands have to face tough competition from international brands. While the multinationals' notebook vendors are experiencing burgeoning sales, local notebook makers' cash registers are not really ringing that loud. Combining aggressive pricing with attractive offers, a leading Taiwanese computer maker is pushing its laptops into the fast growing mobile PC market. Acer is combating leading and well-entrenched MNC brands like IBM and Toshiba, and other popular ones like Dell. For vendors, gaining a dominant share in the growing notebook market is important as analysts are predicting a boom in notebook purchase. Hewlett-Packard (HP) had the largest share of the Indian PC market in the Indian fiscal year to March 31, 2006. In the client PC market, which includes both notebook and desktop PCs, HP had an 18 per cent market share, followed by Indian vendor, HCL Infosystems, with 14 per cent. Lenovo Group followed with 9 per cent. HP's lead came from its strong showing in the notebook segment of the market, where it had the highest share. In desktops, HCL was the largest vendor, according to IDC India. HCL Infosystems, which is the sole distributor for Toshiba laptops and notebooks in the subcontinent, launched Toshiba Portege R 150, the world's lightest notebook, weighing less than a kg (995 gram). Overview A combination of wireless technologies, access to Internet through WiFi (wireless fidelity) hot spots or broadband network has made existing and new generation computer users upgrade themselves. Competition is getting hot with the increased market share. Price sensitive and tech savvy customers will look for value addition to the product in the form of upgrades and devices than merely after-sales support or services. Statistics reveal that the laptop market is growing by over 100 per cent annually. The widespread proliferation of wireless hotspots across the country has only catalysed this computing segment. The government has consciously dropped duties for both fully imported and locally manufactured laptops, thus making it more accessible to the common man. Undoubtedly, this measure taken by the government has allowed the industry to set competitive price points. A host of business schools and professional institutions have found immense value in deploying laptops as part of their curriculum. Apart from this, there are a lot of companies that see the business value in using laptops for their routine work. There is a huge rural market out there, waiting to be tapped with the right set of solutions and products.
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