Xerox Modicorp to storm SOHO market

NEW DELHI: Xerox Modicorp Ltd. is all set to storm the SOHO market with

inkjet printers later this year. This will follow the worldwide launch of

Xerox's range of low-end inkjets next month. Xerox Modicorp is toying with the

idea of manufacturing the printers in the country. While the strategy for

marketing the printers is still underway, the company has firm plans of

capturing at least 15-20 per cent market share in India within the next two

years.

According to Xerox Business India Group MD HN Nanani, with this launch, Xerox

Modicorp will be able to offer a comprehensive range of printers in India. The

company had recently launched the Docuprint series of network laser printers.

Explaining how the company will be able to achieve its targeted market share

in the low-end inkjet segment in the face of stiff competition from HP, Nanani

said, "We have certain in-built strengths. First of all, our indigenous

strength in marketing will help us to address the market better. Local value

addition can be done to the printers, if we decide on manufacturing them here.

As we also get duty benefits, we'll be able to offer a competitive price."

Elaborating on the company’s established sales and service network, Nanani

said, "We have 22 operational area offices and a very good reputation in

terms of after sales and service. Most companies don't have that kind of

reputation." A strong network for consumables and supplies is also an

advantage for Xerox Modicorp, he added. "It's not going to be an easy task.

That's why we have set a conservative target for the next two years."

A brand name for India has not been decided as yet. In the US, the printers

will in all probability be launched under the name, Blue Dog. However, Xerox

Modicorp is currently trying to find out if the name will click in India.

The company will of course need a large number of resellers for achieving

high volume sales. It plans to add more resellers after gauging the market size

and potential.

The printers will be priced "competitively" with value for money as

the key focus. "By value for money, we mean advanced product features,

quality of the product, software bundled for performance, etc. It’s not just

the lower price that attracts people. In India, people are quite mathematical;

they weigh each and every thing before going in for a purchase. So, one need not

undercut the price to a large extent." The printers will be priced roughly

the same in India as in the US. Though reseller margins are higher in the US

compared to India, the additional costs of importing into India balance out the

cost differential.

Nanani did not disclose any of the special features attached to the printers.

Worldwide, however, the Xerox inkjets will include two new technologies–eXpress

Mode and InkLogic. eXpress enables the printer to offer business quality output

(comparable to normal mode). The machines also print 50 per cent faster than

other printers, thanks to the Xerox 'bidirectional printing' design, where

printheads can put down each line with just one pass over the page. Most other

printers have to go over a line twice to put down the necessary ink. InkLogic, a

patented color ink system, has four individual ink tanks–cyan, magenta, yellow

and black. This allows users to replace only the color that is empty, thus

saving ink.

Xerox’s inkjets are a result of a $2 billion collaboration between Fuji

Xerox, Xerox and Sharp. The agreement capitalizes on Xerox's brand, Sharp's

manufacturing expertise and Fuji Xerox's technological know-how and global

distribution capacity.