In control of destiny

If a survey was to be carried out on brand popularity in India, Xerox will surely figure among the top few. And yet, not many people in India know Xerox as a brand, but rather as a verb as in, “please give me five xerox copies of this document.”

Xerox, the brand name, is lost in those yellow signboards that are so ubiquitous in every nook and cranny of the country.

Nonetheless, there is so much more to Xerox than just photocopying (a technology that it invented). Over the years, Xerox has been trying to project itself as a document solutions company. It has undertaken a big branding exercise to change the ‘photocopying’ perception on foreign shores and is now consciously trying to promote the document solutions image in India as well.

Xerox has had a very colorful time in India. It was among the first few MNCs to come to India, riding on a joint venture with the Modi Group.

The relationship later got soured. After much acrimonious battle, Xerox wrested full control of its venture from Modi in India a few years ago. Since then, the company is proverbially turning a new leaf with Andrew Horne, the managing director, Xerox (India), at the helm.

Xerox has been doing well in India over the last few years, especially in the MFD (Multifunction Devices) segment. The Englishman (Horne) seems to be pretty at home in India.

In an extended conversation with Shashwat Chaturvedi from CyberMedia News Horne talks about his company’s prospects and challenges. Excerpts:

What is the latest on your retail foray after setting up shop in Bangalore?

I am always a bit cautious about retail when we talk of retail. What we have set up in Bangalore is more of a showcase of Xerox products. This is very much an initiative with our partners, so we are just doing a trial at the moment and, as we all know, there is a huge amount of excitement around retail. But, 60 per cent of the IT spend is done by small and medium sized businesses that indicates a massive growth potential and I don’t think that retail initiatives as such will drive the consumers to choose their purchases. Nonetheless, we are examining retail as well and I don’t think that I have much to add on that for the moment.

Updates on channel strategies?

Channel strategies are, again, things that people talk about a lot. I don’t think that there is a great deal of change in what we are doing, as we seem to be doing quite good. But we will have a greater focus on channel education. We have a program specifically for them so that they are able to make more money from our wider portfolio. We have a broad channel in our production systems business. We are, all the time, working with our partners, whether they are SBUs, Xerox production partner or others. Thus, if there is a need for a direct sale from Xerox, there will be a direct sale, but one of the things about partnership strategy is that the partners need to know where they stand. We have got things going right with our production business and that is why we are experiencing good growth.

Transitioning from being a photocopier to a documents solution company…

It is a very good sort of challenge. We have been trying to develop the comprehension of brands among consumers in all these years. In the production arena, I don’t really think we have a problem, as we are the market leaders in that space. The office market space is already going from copying to printing and we have already moved our corporate customer base from copying to printing. Our customers do not copy anymore; they print. If you look at any analysis of MFD, the ratio is 70:30 for print and copy. Thus any talk about copier segment being attacked or coming under pressure is nonsense, because it has already happened and we were instrumental in it, as we are the ones who invented the MFD.

What about the image? Xerox still stands for photocopier in India?

It takes times to change perceptions; you cannot do (change) it overnight. It is a sort of habit. For instance, people of my age find it difficult to read documents on screen. We prefer to print them out. Similarly, you see perceptions change over a long period of time. We have undertaken a couple of initiatives, like we entered into a partnership with the Karnataka State Printers Association on digital printing technology.

Fortunately, with the new generation, who haven’t been burdened with copying machines, the transition has been much easier. We are focusing on the future and the future belongs to the youth.

What do you feel when you see those ubiquitous yellow signboards screaming ‘Xerox’?

Truly speaking, it falls under the auspices of IPR (Intellectual Property Rights). It is a case when a noun turns into a verb, for instance like Google. But we have taken a few initiatives against companies using the word ‘Xerox’ in their trading name. We are taking a very pragmatic way to tackle, bent towards fair play. The Indian government has been pretty supportive of IPR laws. Xerox is a brand, we have developed it over many years and we will look after it, protect it. Clearly, it is a long-term strategy. We have even given out advertisements in a few trade magazines.

Personally speaking, while I am filled with pride to see how widely known the brand name is, there is inaccuracy in its interpretation. We need to associate a message with the brand name. People’s perception change with time. Of course, we aspire to be a household name, for the all the right reasons.

Has the ownership issues been resolved with the Modi Group? What is the percentage of ownership?

Yes, more or less. We now hold around 90 per cent, the residual 10 per cent are with public shareholders. In October 2004, we had got full management control. Xerox appoints all positions on the Board. We are in control of our strategy and our destiny.

What about the 10 per cent? Are you keen to get those as well?

When we completed the buyout of the Modi Group shares, our intention was to own 100 per cent and nothing has changed since then.

What about all those litigations against the Modi Group?

The cases are sub judice and the investigations are still on. We are cooperating with the government and administrative agencies. That is all I can say.

© CyberMedia News