Acer plans to double retail presence

To expand business operation to 400 retail stores in 160 cities

Acer, one of the leading global vendors in the PC market, is seeking to increase its sales revenue from the retail segment to 40 per cent in 2006 from 25 per cent in the previous year.

For this, it will be expanding its presence to over 160 cities and towns across the country and doubling its retail infrastructure to over 400 stores.

Acer India, general manager, sales and marketing (mobile & display products group) S Rajendran informed the media here on Wednesday that the company was looking at a balanced geographical coverage in A & B class cities by targetting high-density zones within cities.

It has also identified 75 new locations in C and D category cities in order to ramp up its presence in upcountry markets.

Rajendran said that the company had witnessed substantial growth in the retail business during 2005. During the period, Acer has expanded its retail footprint by 50 per cent, to over 200 retail outlets in over 80 cities across the country.

"Retail has been one of the biggest success stories for us in the last one year and it has helped us to reach out to the end customer in an effective and interactive manner." The focus in 2006 would be to grow with the existing partners at an even spread without cluttering the market.

In 2005, the company increased the number of exclusive Acer malls to over 80 malls in 50 cities across the country. Among product categories, the notebooks and display segment posted an over 800 per cent growth year on year and desktops by over 200 per cent via retail. Projectors, a new category, grew by over 50 per cent quarter on quarter.

In 2005, retail contributed upwards of 60 per cent of total consumer focussed sales. Average sales per outlet witnessed a three-fold growth in 2005 in comparison to 2004. The introduction of a number of new products like servers, TFT monitors, projectors and home cinema centres contributed significantly to the growth, Rajendran added.

Acer has announced quarterly schemes for its retail channels across the country "designed to allow the partner to get the maximum benefit from associating with Acer in its retail initiatives," he said.

These programmes had helped motivate partners to propel sales through the retail channel and build an important line of communication between Acer and the retail partner.

Acer's ultimate goal was to ensure that Acer malls comprise 70 per cent of all upcoming retail infrastructure.