B Swaminathan
Established in the Year 2002, Quantum Hitech is one one of the largest players in IT peripherals in India. With close to 150 products spread across 3 categories, the vendor claims to have affordable innovation with Quality products. According to the home-grown ‘Make-in-India’ company, more than 170 Million products sold in India. Quantum Hi-tech aims to cross 150 crore by FY 2018-2019. In a chat with Cell IT, Ashish Mutneja, CEO – Quantum Hi-tech shares the channel plans.
Cell IT: How was the overall performance of Quantum during the last fiscal?
Quantum: We have a big unfulfilled demand in India, and growth will surely come. For Quantum, the Mobile Accessories business and CCTV Cameras has contributed 50% towards the overall revenue for the Brand. Power Banks is one the main revenue drivers in the Mobile Accessories Business. As against the intense competition Quantum gets a breather being more than 50% Made in India, having an edge over others, with Price and Quality with products tailor-made for Indian Markets.
Cell IT: What were the key highlights of Quantum in terms of channel segment?
Quantum: In terms of channel segment we have had a very focussed approach on Targeted marketing. Also, we have worked upon our overall value proposition and also brought an extension to the product line with newer categories. Also, Quantum is a very channel friendly brand and we strongly believe that our growth is strongly attributed to the channel segment which is our strongest network and also the trusted allies to establish a strong connect with the audience. We engage with several channel schemes/programs/trainings etc…to bring a win-win situation to both the parties. Also we have segmented our channel as per the regions and business, which has led superior outcome/results.
Cell IT: What are the new product lines you are planning to come up soon?
Quantum: Power Banks have been a strong hit for us. For newer categories we have explored Audio category and have launched Bluetooth Speakers which actually gave us a very strong traction and also helped us understand the next nature of line up in this category. We have tried to bring Modern style with traditional touch in terms of design of our speakers, with no compromise in quality. At the same time, we are also exploring the Wearables category and also virtual reality.
Cell IT: In the current multi-marketplace, as a vendor, how are you maintaining the price parity amongst the online and offline channels?
Quantum: This challenge, we never had with us. Because even when the Online sales were heating up and brands had the Online fever, Quantum chose to remain grounded and stuck to the traditional Method, coz we understood the flip side of the coin before others did. Having said that, we have established a simple protocol that products which we sell Online are not available offline. We shall plan now to expand our footprint in the online marketplace as well.
Cell IT: What is your distribution model and what is the innovation you are planning to bring in your distribution system?
Quantum: We are very much focused on our Distribution channel. We have over 200 distributors, 20,000-plus resellers and 20-plus service touch points that strengthen Quantum Hi-Tech’s foothold in over 1,000 cities and towns. The evolution of our channel program dramatically strengthens our ability to support partners in healthy growth, rapid decision-making, and deeper customer relationships. We at Quantum have also re-designed our programs to focus on Sales (driving both partner growth and profitability), Speed (immediate access to decision-making tools, information and sales resources), and Simplicity (streamlined operations across markets and geographies), this three phased approach has worked well with us in bringing seamless growth.
Cell IT: What according to you, the changes that will be happening post-GST in the accessories and peripherals segment.
Quantum: Maintaining margins after the untimely and sudden implementation of GST have become tougher. While GST poses fresh challenges for the tech companies, startups and foreign e-Commerce operators as stated above, it also settles down some basic questions in the erstwhile indirect tax regime. GST also provides various benefits like the free flow of credits, hassle-free movement of goods, no overlapping of taxes, and others. Specific exemption to incubate is a welcome step by the Government to recognize and promote innovation in the fields of science and technology.
Cell IT: How channel-friendly is your eco-system? What are the channel plans you have for your products?
Quantum: We are preparing to implement a new channel strategy, one that reorganizes the partner program in a way that mirrors the larger transformation across the company while remedying some earlier problems. The Goal is to create the more diverse ecosystem as part of which we have recently revamped our incentive model around the partners that has shifted the focus from fulfillment to value – raising margins for partners who develop new clients, retain existing, new opp and high-value solutions. We have also engaged in a specialized training program which is mapped as per the product launches, educating them on the latest ongoing trends in the Industry, keeping them abreast and in sync to connect with the consumers.
Cell IT: How effective is your post-sale support and warranty services?
Quantum: Our products stand testimony to the question raised above. We have a very strong after sales Team. Very recently we have also introduced our Replacement Policy which aims to paint a new landscape in IT industry. We are still working upon some new policies. Keep watching this space, we shall announce them soon.