Madurai Market in Hibernation

Located on the banks of River Vaigai, Madurai is located in the beautiful state of Tamil Nadu. It is the third largest city in the state, next to Chennai and Coimbatore and the second largest municipal corporation in Tamil Nadu next only to Chennai. Madurai is an important industrial and educational hub of South Tamil Nadu. The city is house to various automobile, rubber, chemical and granite manufacturing industries. It has developed as a second-tier city for information technology and some software companies have opened their centers in Madurai. Madurai has important government educational institutes as well.

Talking about the IT market of the city, Madurai has got a decent number of approximately 130 resellers in the city. The market scenario, although thriving in the recent past due to festivities, is lying dull at the moment. According to Ashwin Jeyakkumar, CEO, Classic Peripherals, the market is going through a slowdown phase at the moment. He said, "The market is very dull at the moment. Primarily due to the free laptop scheme floated by the Government, from the past 4-5 months sales have dipped drastically." N Senthil Kumar, owner, Computer Shoppe also said in conjunction, "Market is dull/average this month. Last month was good as we organized expo and exhibitions and also because of the festivals like Christmas and New Year."

Talking about the growth vertical of the city, partners were of the opinion that education, SMB and SOHO were the primary contributors. Brands like HP, Dell and Samsung are doing good in the city. Jeyakkumar said, "Samsung laptops are sold most in the city. While service and networking products are sold most. Also since there is a huge power-cut issue in the region, inverters are are sold in huge quantity." Senthil Kumar said, "HP and Dell are the top-selling brands. Among the products assembled and branded PCs also sells along with laptops. On an average, 1000-1500 laptops are sold per month while 750-800 assembled PCs are sold."

Mentioning about the vendor-dealer relationship in the city, Senthil Kumar said, "Certain issues are there, mostly service issues, but that's negligible. Some problem exists everywhere." Computer And Media Society (CAMS) is the local IT association of the region. The association is quite active in the region and has recently launched their website. Speaking about it, Jeyakkumar said, "CAMS is very active in the region, they have launched their website also recently." Senthil Kumar added, "CAMS is more active this year than last year. They have added more members recently. Previously they had only 80-100 members and now they have around 130 members."

Although the market is dull at present, Senthil Kumar is hopeful of a positive future. He said, "Market has to grow now. Also, tablet sales will increase and outdo laptops in the coming times." Jeyakkumar added, "In 2-3 months, market is predicted to improve."

Market Name: Madurai

Market Location: Tamil Nadu

Surrounding Markets: Dindigul, Theni, Tirunelveli, Thoothukudi, Kanyakumari

Computer Association: Computer And Media Society (CAMS)

Prominent Dealers: Asian Computers, Classic Peripherals, Computer Shoppe, PC World, Pearl Computers, Pentagon's Compushop, Power Media, Premier Systems & Peripherals, Sharp Computer Systems, Sunvin Computers, Vectra Computer Solution, Vijay Ttrading Corporation, Waveplus Software

Business Verticals: SMB and education

Interview 1: Ashwin Jeyakkumar, CEO, Classic Peripherals

How has the market been in the last 2 months?

The market is very dull at the moment. Primarily due to the free laptop scheme floated by the Government, from the past 4-5 months sales have dipped drastically.

What are the primary growth verticals in Madurai?

Education.

Which is the top selling product of Madurai?

Samsung laptops are sold most in the city. While service and networking products are sold most. Also since there is a huge power-cut issue in the region, inverters are are sold in huge quantity.

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Interview 2: N Senthil Kumar, owner, Computer Shoppe

How active is CAMS in the city?

CAMS is more active this year than last year. They have added more members recently. Previously they had only 80-100 members and now they have around 130 members.

What are your market predictions for this year?

Market has to grow now. Also, tablet sales will increase and outdo laptops in the coming times.

How may laptops and PCs are sold per month in the city?

On an average, 1000-1500 laptops are sold per month while 750-800 assembled PCs are sold.