Kingston eyes # 1 slot by '08

S Gopikrishna Chennai, Nov 10

The so far unorganized memory market is expected to undergo a
clean-up act with memory major Kingston's recent direct entry into India. The
company's move has significance in more than one way. In fact, Kingston is the
first memory company to set up shop in India. It shows that the company has got
a larger game plan for the country, more than just that of capturing the PC
memory marketshare. The company is working on a three-tier channel structure,
which will give them the necessary push in the market.

"Though we have only a small base (marketshare) in India
currently, we are bullish about the market and it's just a matter of time
before we ramp up our operations here. Even when we entered China about five
years back, we were in a similar situation. But we attained number one position
within two years there. Kingston will become a leader in India by 2008,"
said Rajesh Panicker, Country Manager-India, Kingston Technology.

Kingston has a range of products in its stable which include PC
memory, server memory, laptop memory, USB drives, flash cards for cameras and
mobile. The company distributes products in India through AA Infoways, Avnet
India, Ingram Micro, Kobian Electronics and Transtek Infoways. "We are
working on a three-tier model by creating new layers such as regional
distributors (in metros) and master resellers (in upcountry markets). We want to
create value for everyone in our distribution chain," informed Panicker.

On pointing out that Kingston memory products are costlier than
its competitors, he replied, "Our direct presence here would ensure product
availability and better inventory management, which will bring the cost down in
the coming months. Memory is a highly volatile market and good inventory
management will keep the cost under control," added Panicker.

Kingston is aiming for 25 percent marketshare by 2007, and for
the number one position in the subsequent year (2008). Mobile will be the
biggest target segment for them, followed by PC and gaming. "Kingston has
many advantages that will help it to become the leader in the market with direct
office presence, service support, sales team, quality products and more,"
said Nitin Malhotra, Distribution Manager-India, Kingston Technology. The
company recently appointed Accel Frontline as their warranty support partner in
India.

Talking about brand consciousness among consumers in the memory
segment, Malhotra said, "We will invest significantly on brand building and
educate the customers to ask for specific brands while buying products. We are
also looking at retail stores to sell our products and create visibility in the
market."

Kingston will launch certificate and loyalty programs among
channels, to recognize and reward the resellers. The company's head office in
India is located at Mumbai, with branches in New Delhi and Bangalore.