Lenovo adds another tier to disti model

In order to cater to a vast network of partners and ensure greater
accessibility of its products, Lenovo has revamped its distribution model. The
company will be adding yet another tier to its existing network that currently
includes national and regional distributors.

Though the new set of partners will function more on a sub-distribution
model, they will be classified as regional distributors. The company has
appointed a host of partners across the country.

Challenger Computers in Delhi has been appointed as the exclusive regional
distributor for Lenovo's desktop range, PG Microsystems in Gurgaon and Comexcell
Techonologies in Kanpur have been appointed as the regional distributor for
their respective regions. Bhopal-based Latest Infotech has also been approached
by the company for the same products. However, Lenovo is yet to appoint Latest
Infotech who is also its Lenovo Exclusive Shop holder (LES) and handles service
issues for the company in the region.

Netage Computers will be regional distributor for Ghaziabad region. Chandra
Infosys in Lucknow, Computer Shoppee in Varanasi, Strutech Systems in Panchkula,
have been appointed as partners for their respective cities in the North region.

In West, Ahmedabad-based Aditya Infosys and Silver Touch Technology have been
appointed as the regional distributors. Mumbai-based Blue Chip Technology,
Megahertz, Pacific Infotech, Realtime Infotech, Solution India, Venus Infotech
and Monarch Technology have also been appointed as regional distributors.

On contacting Lenovo, Ramprasad Laxmi Naryan, VP-Transaction Business, Lenovo
India refused to give any clarification and added, “The model has just been
rolled out and it is too early to comment on it.”

The DQ Week got in touch with some of the partners to understand their
perspective on the new model rolled out by the company. While some partners were
of the view that this was a good move by the company in view of the fact that
the and the customers will now have greater accessibility to the products,
others stated that this would lead to stiff competition in the market and
margins would decline further.

Earlier the national distributors and the regional distributors of Lenovo
used to sell the products to a Lenovo authorized partner. However, with the new
model in place which is more or less a replica of HP sub distribution model, the
new regional partners will ensure availability of products as this will ensure
that the products are available even in the remote locations.

Ajaya Kumar of Park Computers, regional distributor for Lenovo, Haryana
region, mentioned, “For any of Lenovo's direct scheme the national distributors
and the sub distributors used to bill the partners below them. With the new
model in place the company will have separate schemes for the new set of
regional distributors as well.”

Bhupendra Gaur, Proprietor Latest Infotech Bhopal mentioned, “I was approachd
by the company and they are looking at appointing regional distributors as well.
The strategy that they have worked out is only to attract the channel below us
as this also gives a boost to their business. This is a model followed by Compaq
as well. However Lenovo has modified it only to a little extent.”

Rohit Kohli of Comexell Technologies, Kanpur opined,“We have been appointed
Lenovo's regional distributor only recently. This will ensure that the channel
has greater accessibility in terms of product availability.”

Ajay Singla, ACCI Mall, Panipat opined, “Through this model the company and
the end consumers are going to benefit a lot. However, the small dealers are
going to suffer as their margins will decline further.”