The Channel is the Business

It's a part of the tech industry that few outsiders, or even CIOs or other

consumers, get to see up close. Even if a million people buy from them, at Nehru

Place, Lamington Road, and so many other roads and streets across India. But the

Channels rule the technology industry. Over three-quarters of the domestic

hardware, services, and software revenues, over $9 bn, flows through the pyramid

of distributors, wholesalers, resellers, and dealers that make up the technology

channels.






Most of the success stories in India's technology market begin and end with
distribution-the channels. HP and Intel are examples of companies that leveraged

the channels to the hilt, building up market dominance through innovative

programs, incentives, financial and tech support, and education. And when

competitors came in, the entry route was, of course, the channels. Canon took up

share by rapidly building up its channel play, initially aiming for the gaps in

HP's portfolio, and expanding to other areas. AMD finally began to gain share

from Intel's 90% lock on the market when it got its channel act together.






HP remains a favorite of the reseller community, and others are ramping up
rapidly on the shoulders of the channels. In a year, newbie Lenovo quickly

reached #2 in overall channel satisfaction in the annual DQ Channels-IDC survey,

just behind HP. If the channels are that happy with a company, the conversion to

sales becomes a lot easier.






Thanks to the sheer size and complexity of the country, almost every major
player uses the channels in India, one way or the other. Or develops its own,

such as HCL did, while it evolved into a mega-distributor of hardware and mobile

handsets. Even classical 'direct' players such as Dell have to use support

channels in India.






Investing in the channels today means growing, or protecting, market share
tomorrow. It's a bit like investing in employees: there are the hygiene factors,

things that let them sell your product better: support, marcom, margins,

incentives... But the 'channel makers' go beyond that, into areas that help

develop and strengthen the channels.






Before you can find the answers, you have to know the questions. What are the
channel's pain points? Margins? Growth? Expansion? HR and retention? Training,

even for the proprietor himself?






Can you help address them as vendor and principal?





For how vendors handle and develop the channels today, will make or break them
tomorrow.