1. How do you define the Multi-Function device market in India? What are some of the specific advantages and disadvantages of this segment in India?
A. MFDs today are fast changing the print device landscape in India as they offer an option of device consolidation, smaller footprint and most importantly reduce hardware cost and hence making it an intelligent device. Customers today do not want to invest on different devices and look for a product which can help them manage their printing infrastructure more efficiently.
There are many features like advance box and mailbox which can help customers frequently print a document and store in the device itself and fire print as and when they want. Government, SMBs, and the education sector remain key contributors to the growth of MFDs. Laser MFPs are more skewed towards the small work group areas like the SMEs and SOHOs.
MFDs are more consolidate and fit for a heavy print volume so these make a lot of business sense for larger industries but for small offices this might not be of a great advantage since the print run is less there.
2. What is your big focus towards the Multi-Function device Market in India?
A. Canon has robust plans to strengthen its presence in the MFD market in India. We plan to extend our reach to D and E class cities to increase growth in sales of MFDs and also help partners move up the value chain. For the D and E class town we are focusing on the IT reseller market and are equipping them with regular training programs.
Our focus is to integrate MFD with the solution and move away from the box selling model. Also, companies increasingly want to have the OPEX model so Canon is trying to be the 360 degree solution provider with the business services collaborated with the hardware.
3. How are you targeting this segment in India, what is your go to market strategy?
A. Our GTM strategy is to outplay the competition through our patented and innovative technology. Canon Inc holds 3.825 patents and this is our strongest weapon. Besides, we have built a strong channel across the country for unparallel sales and service to the customer. There are other factors like getting the right resources, integrated marketing which complete our go to market strategy.
We focus on providing product training to our partners and for laser MFPs we are aggressively focusing on VARs catering to enterprise, mid-market and government segments.
4. What kind of growth are you expecting in this segment? Where is this growth likely to come from?
A. Canon has shown double digit growth last year in Office Imaging Solution division. We have robust plan to continue our growth story in India, looking for a double digit growth this year as well. Canon is the market leader in A3 multifunction devices since last 7 years and we want to continue maintaining this position.
5. Please share some of the challenges and opportunities that you see in this segment?
A. One of the challenges that we see is getting trained partners and education the customers. In smaller markets like D or E class, finding a partner who is ready to invest in the service set initially is a little concern as they are little bit wary of the cost. Also, getting skilled manpower in these small towns is a bit of a challenge, but since Canon provides support in setting up the service structure and helping them to recruit the people in those locations, we are slowly overcoming this challenge.
Opportunity is the growth of India Inc. As companies will grow, so will their printing needs.
6. How can channel partners grow by associating with this segment in India?
A. We are looking for expanding our channel base which has been the primary focus for us in 2014. We have around 220 channel partners focusing on Office Imaging Solution business. Our plan is to expand our channel reach from 220 to 280 partners by 2017. Canon also believes in training our partners to take care of the future technological trends like mobile printing, Wi-Fi etc.
We are recruiting new channel partners and at the same time enabling the channel partners in class B and C towns to take care of new technological development so that they are ready to serve our SMB customers. Canon has a unique practice in a channel business for printing device. We have a concept that sales and service is done by same partner so person who is selling the product should also have a service set up. As we are expanding, we are making it sure that we will not only give the sales partnership but service partnership as well to our channel partners. In smaller towns also we will follow the same concept of sale and service partner so that our sale and service backup for a customer is also strengthened and we reach each and every corner of the country.