| RETAIL: Lessons in how to sell luxury technology.
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| Devita Saraf wants to change the way luxury technology is sold, and she intends Vu to be the first Indian-led company to lead that change. Vu Technologies, created by Zenith Computers, develops and manufactures luxury computers and LCD displays.
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| In Vu’s flagship store in a south Mumbai mall, you are attended to by staff with qualifications not in technology but in luxury retail and hospitality. And along with the purchase of a product comes the services of an interior designer.
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| “The premium digital products market is booming, but are consumers enjoying the process of buying?” asks Saraf.
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| Unlike founding company Zenith’s no-frills approach, Saraf wants Vu to up the ante on conventional technology design. The circular designed advanced PC — Vu Piston, is one such design-led example.
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| “People ask me why it’s so expensive (Piston is priced at Rs 50,000); it’s extremely quiet, has a 200 GB storage capacity, comes with a long-range wireless mouse and incorporates a proprietary motherboard,” says Saraf.
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| “Increasingly we see that it is the women that are decision influencers,” she continues. And part of appealing to these new decision makers is incorporating design ideas that are androgynous in appeal.
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| Don’t think the average LCD blends in with your decor? Vu offers customisable frames (in “mahogany”, for example, or antique gold) for LCD displays for Rs 5,000.
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| Despite a product range that includes PCs, speakers, gaming and bluetooth products, Vu intends to be a serious contender in the premium LCD display market. India’s flat panel market (that includes LCDs) is expected to touch 1 lakh units this year.
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| According to Archana Jayarajah, research analyst, Technical Insights Group at Frost & Sullivan, “As customers recognise the growing benefits offered by evolutionary technologies and an increasing focus on design, the market for LCDs advances rapidly.”
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| Saraf isn’t displeased when first-time customers ask if Vu is a Japanese brand, but isn’t competing with the Samsungs and Sonys. That’s the reason why Vu does not concern itself with price wars and retails direct.
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| However, according to Jayarajah, historically it has been price that has driven the LCD display market, with manufacturers slashing prices up to 35 per cent in the last one year.
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| Aimed firmly at the premium market, Vu sharply contrasts Zenith’s business model that’s grounded in mass appeal.
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| “The DNAs of both companies are very different. Having said that, I believe that in 25-30 years, the gap between high-end and low-end will collapse and then our shared resources will become more important.”
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| Saraf intends opening 30 Vu showrooms by 2007. For now, Vu has launched a digital home product in time for Diwali shoppers — a blend of computer, gaming and home theatre systems (priced at Rs 2,89,000 for the 47” inch screen).
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| “We hope to sell at least 200 of these digital home systems in the next two to three weeks.” Saraf says. “Vu was conceived because I believed there should be an Indian company that profits from India’s consumption boom.” |
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