Date:26/08/2005 URL: http://www.thehindubusinessline.com/2005/08/26/stories/2005082602510800.htm

Back HP plans 50 `Experience Zones'

Ambar Singh Roy

HP Experience Zones will showcase the company's product offerings in various zones. These include digital photography zone, entertainment zone, mobility zone, an original cartridges store and a category unit that will have laser printers, inkjet printers and laser and inkjet all-in-ones.

Kolkata , Aug 25

HEWLETT-Packard India Sales Pvt Ltd (HP) will put in place 50 exclusive "HP Experience Zones" in the country within the next 12 months.

Besides enabling the company to reach out to customers, the initiative is expected to help increase the contribution of the company's imaging and printing group to its overall revenue, according to Mr V. Krishnan, General Manager, Consumer Sales, Imaging & Printing Group, Hewlett-Packard India Sales Pvt Ltd.

Mr Krishnan told Business Line that HP currently has 194 exclusive premium retail outlets across the country. In the next 12 months, 50 more would be added.

Of these, a total of 50 outlets - including a mix of old and new ones - would be designated as exclusive "HP Experience Zones". The setting up of each of these HP Experience Zones would entail and investment of Rs 15 lakh on infrastructure alone. While this would mostly be borne by the franchisee, HP would spend on investment in branding initiatives.

Mr Krishnan said that, according to a market study conducted by IDC and KPMG, the retail market was gaining in prominence in the last two years. Customers were willing to go in for branded products even if it meant paying a premium of 10-15 per cent more for them vis-à-vis their unbranded counterparts.

"In this situation, we feel it is imperative to be closer to the customer. These Experience Zones will enable our customers to see, feel and understand our products and their applications before they choose to buy them."

In India, HP currently has a share of 65 per cent of the market for ink jet printers, 74 per cent of laser jet printers, 82 per cent of all-in-ones, 35 per cent of notebooks and 14.5 per cent of consumer desktops.

The setting up of the HP Experience Zones is expected to help the company augment its market share across all segments, especially all-in-ones and notebooks. Tangible results in this regard would be discernible within three months of operations of the 50 HP Experience Zones that would be put up across the country, according to Mr Krishnan.