HP bets big on digital studios

NEW DELHI: With a clear vision of ‘Go Closer to Customers’, HP’s Imaging and Printing division has plans to cross the 2,000 digital studios mark by end of this calendar year. With an aggressive marketing strategy devised by HP India (HP) for its digital imaging business, it plans to make HP a money-spinner.

HP India country manager for the consumer peripherals Ashwini K Aggarwal said, "HP India's Digital Studio concept envisages selling a personal computer (PC), photo printer, scanner, digital camera and the HP Photoshop software as a package to existing studios or new entrepreneurs for setting up digital studios."

On an average, HP’s Digital Studio costs about Rs 70,000 to Rs 85,000 to set up and with the recent downward spiral of hardware costs, it might cost even lesser. "With the pervasiveness of IT in everyday lives, the price is no longer a deterrent. More often than not it is availability and training that decides the pervasiveness of a technology", he added.

Explaining the objectives behind HP Digital Studios initiative, Aggarwal said, "With these efforts, we are driving the concept of digital photography into the Indian mainstream photography segment. By having photo studios as partners, we are developing a self-sustaining business model that demonstrates the cost-effectiveness and completeness of the HP PhotoPrinters and solutions for the segment. We are also aiming at creating the instant digital photo printing market by leading the way."

With a fraction of a set up cost as compared with the conventional silver highlight technology, according to Aggarwal, it has the potential of beating the Polaroid and conventional technology. It can print passport size pictures for two-thirds the price for a Polaroid and larger pictures. It also offers services ranging from photo identity cards and posters to visiting cards. With such small investments and low expertise required, HP is looking at selling this studio even to the PCOs and cyber cafes.

HP India is also targeting street photographers, tour operators and even schools, where student photos are required to make identity cards, in order to make further inroads into the Digital Studio project.

HP India plans to have over 2,000 photo studios as partners, by 2003-end. The company has already appointed 1,800 plus studios as HP Digital Studios across 37 cities within a span of one year.

Talking about the future plans, Aggarwal said, "Through these digital studios, we are currently reaching two million customers a quarter. We plan to increase this to over a million customers per month within the next quarter with a few more appointments."

The business model, backing this set up is a retail franchisee model, which HP gives the studios. These support initiatives include training, branding, promotional materials like signage, user account management, and loyalty programs and special pricing. This could well be the next cash cow with as much as 50 percent of the profits coming from the consumables for these studios.

(CyberMedia News Service)