Goa one of the strongest markets: Lenovo

HERALD:  What is the Goa market like for you?

Vijay Sharma: It is one of the strongest markets we have in the country, this is the third store we are opening in the Goa market. We have very good presence in the trade through our distribution. This is our third store we are opening in this market. There is a strong market in tier three stores so we have presence of breadth stores and our own stores. We have a leadership position in Goa and we would like to consolidate this presence and enhance our product mix.

HERALD:  When you say Goa is a good market what do you mean by that?

VS:  When I say good market, I mean a market where we have seen consistent growth. It is a market where the premium mix is very high. Desk top is about ten percent and a large volume comes from notebooks.

HERALD:  Who is buying your product in Goa?

VS:  Most of the people who buy laptops are young students, I am not sure if too many visitors are buying laptops here. With many colleges in Goa, there seems to be adequate catchment area in the state.

HERALD:  When you say this is the third store, what do you mean, is it a dealer store?

VS:  The model we work with is, we work with a franchisee and this is the third franchisee store in Goa. They bring in their investment and they have their own operational experience, we support them with branding. It is a very strong co-partnership. We have two in Panjim and now one here. We intend to expand, in a small state like Goa we already have three and in states like Karnataka we have 17-18 stores and pushing very hard. We are very bullish and we want to expand with our own stores and the stores of our franchisees.

HERALD:  What are the characteristics of the Goa market?

VS:  The notebook contribution is much higher here, people like premium products here. They are willing to spend a little bit more. people show a preference in buying from good retail stores, they want a good retail experience. The consumer in Goa will accept innovation faster than in other states.

HERALD:  You are available on line and well as offline, is there a difference in price?

VS:  Yes, there is a difference in price but there is a strategy. Online models are different and the channel product is different. If there is a price difference it is because of the configuration. Some features will be missing in the online version. In retail, we offer complete package with laptop, backpack while online it is only laptop. The offers we run in the stores are different from the offers we run online. In the store, you might get additional warranty, shopper stop vouchers.

HERALD:  How many laptops did you sell in Goa last year?

VS:  Around 3000 a year and this includes pc and laptop. This year we expect to grow about 15% to 20%. The market consumes around 6000 computers a year.

HERALD:  How do you see this market grow in the next two years?

VS:  Laptops are becoming sleeker, lighter , higher battery life, processors are getting faster , it may not get cheaper but for the same price you will get better value.