With the merger of HP and Compaq, the new HP is facing a glut of retailers. With the result, there is fear among some of these retailers that they might have to down shutters by the end of this calendar year.
Explains one former exclusive Compaq retailer who has now become a multi-brand seller, "There are over 450 exclusive Compaq retail outlets and another 400 HP showrooms in India, concentrated largely in metros. This is too large a number for the market. So the new HP will have to downsize this number to a manageable 500 outlets. Which means it will have to disown quite a few of them."
HP, however, says it will continue to invest in its retail channels for the promotion of various products. V Krishnan, GM-Marketing, Imaging & Printing Group, HP India, says that Compaq retail outlets will continue to retain their current mode of operation. However, there will be lot of changes within the store, which will now have a significant presence of HP peripherals. "These stores will also offer supplies and consumables," he adds.
According to Krishnan, HP is currently in the process of consolidating the retail operations of both companies. Retailers see this as a reason to worry. Says Vengarai Srinivasan, Proprietor, Cyber Boutique, "Since I am an exclusive Compaq retailer, the new HP will protect my loyalty. But other HP outlets which are multi-brand in nature might be threatened by this process."
Krishnan says that the new HP is working on branding guidelines for retail outlets. "Once an uniform branding is implemented, every store will become a part of the new HP retail chain," he adds. But will the market absorb the glut of new HP stores?
Vinita Bhatia
(CNS)