PC adoption both a challenge and an opportunity, says HP India MD

Demand for premium PCs is up in India as consumers are willing to pay more for better experience, Chandra tells 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 empower students in rural areas, we have introduced self-contained, internet-enabled and solar-powered digital learning labs named “HP World on Wheels” in public-private partnership model aimed at driving digital literacy, e-education, entrepreneurship training and other citizen services.

How is HP 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 work flow 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 digitise their existing physical records (billions of high risk and confidential documents). We are working on a project in Bihar wherein we are digitising data 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 per cent in India, Q3 FY18, as per IDC).

The India PC market is going through a transformative phase wherein there is a rising 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, HP has focused on design innovation and introduced the most stylish and best-performing devices. Our premium devices, led by Spectre and Envy range, have got extremely positive responses and now we are leading the premium market segment in India.

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 smartphones 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. Smartphones are effective for content consumption but when it comes to advanced computation, creative work or other complex applications, a PC becomes an imperative.

Consider the evolution of gaming in India. As per industry reports, the Indian PC gaming market has almost doubled in the last one year. This is because gamers are increasingly moving from their smartphones and consoles to gaming laptops and desktops for a better experience.

What are the key technology innovations and shifts in consumer demand (product preferences) transforming desktop and notebook segment?

The number of millennials in the working age population with good disposable income in India is one of the highest in the world. For them, work is no longer confined within the desk or the cubicle. They are always on the move, travelling for work or personal reasons and they want their devices to be their technology companion everywhere. Devices that give them the freedom to work, play and create on-the-go. Also, as new-age consumers, they are willing to spend more for availing premium experience.

In the notebook segment, the millennial consumers want products that are sleek, good looking, powerful and productive. In the desktop segment, there is a rising demand for All in One desktops or AIOs, desktops with bigger monitors and also mini desktops that are of the size of small pizza boxes.