Partners Approve Zenith's Move

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Despite business closure channel feels the company will be able to do better with its own PCs now...

Zenith's decision to get out of distribution business will not harm its channel partnerships after all. Going by the market sentiments it appears that partners have been expecting this move for quite sometime now. Instead of feeling low about doing business few partners have actually lauded the vendor's decision, as they feel the company will be able to support them better in pushing the PCs.

In fact the company had supposedly stopped distributing other brands for sometime now. It had restarted its distribution business about year and a half back. But obviously the business did not get the company the requisite returns. Confirming this news, Ritesh Phadnis, Proprietor, Borg Infotech, a Mumbai based partner, said, It was very much in the air. From past three months the company has been very inactive in the promotion. But as the company has only closed its other distribution business it will not affect my business as I own the exclusive store for Zenith PCs."

Emphas

ising the point Balaji, Proprietor, Envision Infotech in Chennai said,It was not all unexpected news. The company is no more focusing on distribution. They are now only pushing their own PCs. We are doing sub distribution in the region, so I dont think it will impact the companys growth in the region.

One of the reasons why the company's branding will not get effected is the fact that it never created separate channels for its own branded PCs and the distribution products from other brands. According to sources within the company, this one channel strategy has actually helped the company tide over bad phase. While Raj Saraf, CMD of the company had accepted that the company has lost to the tune of Rs 7 lakh in its distribution business - not a big some really. In fact the single channel strategy saved the company from going down. Partners actually welcome the move, saying that this will help them sell better the Zenith PCs. One of the partners in northern India, Ravi Agarwal,