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The Nepali Market Is Dominated By SMEs

  7 min 2 sec to read



Printers from Brother were available in the market for quite some time. What is the motive of officially launching the new line-up in the market now?

Ali: We were available for the last two months but we were still continuing with the current line-up. A couple of new models were brought a few months back and now the entire line-up is available. We decided to organise a formal launch now because we have changed this line up for the first time in three years. Laser printer comprises almost 90 per cent of our business so it is very important for us. Once the line-up was fully available, we decided to introduce the range formally in the market.

How do you analyse the Nepali market for your products?

Tada: This is an emerging market. It has potential to grow in the future but so far, this is a price sensitive market. So, we have launched products that are specifically targeted at emerging markets. I think with this range, we can achieve good results and gain more market share. Ali: I think the entry level models three-in-one and fourin- one printers have the highest sales prospects in Nepal because these are products that are very popular already. We want to sell more colour and high end products for corporate users.

How do you compare the Nepali market with other Asian markets?

Tada: I think that the customer profile is different in Nepal. In other markets, there are more corporate houses and big companies who are our customers. But, the Nepali market is dominated by small and medium enterprises (SMEs). There is very low presence of foreign investments and no big multinational companies whatsoever. This is one of the biggest differences.

Ali: In Asian markets, we have different types of countries ranging from Australia, a very developed country to Vietnam, an emerging country. The main difference is in the profile of customers. Nepal is a little less developed compared to other Asian countries like Malaysia and Thailand which are better developed. They have strong corporate customers who are well educated. They are definitely cost conscious but they also know the importance of warranty. In Nepal, for example, around 90 per cent users depend on refill for laser products. This market needs a lot of education. A refill may save cost in the short term but over a period of, say, five years; it turns out to be complicated and damages the machine making it an expensive proposition. Our approach to the Nepali market is the same as in other regions because we are trying to enhance the education and awareness level of the customers. In terms of market growth and potential, this market has better prospects than any other Asian countries because they have already reached a certain level of penetration. The IT penetration is still low especially in the rural areas. We are optimistic that over the next 10 years, the IT sector will grow tremendously. Even the government sector has minimal exposure to IT so hopefully it may invest more in the next five years and we can grow along.

What is your strategy to cater to home as well as corporate users?

Tada: The corporate houses are our main target customers especially SMEs. This can prove to be the strongest market segment for Brother. Along with a few big companies, there are many SMEs in Nepal. These laser products rightly suit our target customers’ needs and that’s why we have introduced these products here.

What are the specialities of Brother Products compared to other similar products?

Ali: There are three main reasons why Brother Products are known all over the world: (a) Quality, (b) very easy to use products and (c) strong and reliable products. Our products are popular in the USA because they are easy to use and install and it is our biggest market in small office segment. In case of Nepal, we have seen the results over four years now and our products are also being used in very remote regions. We are bringing in laser products which are customised for Nepali condition which we don’t sell in another region, for example, the Gulf countries. These products are customised for Nepal’s voltage and electricity situation making them very strong and reliable for usage in remote areas as well. The Brother Products come with a threeyear warranty and we believe that this will appeal especially to the corporate customers. They can have good quality, stable and strong machines as well as service and maintenance which is taken care of, for three years. We are very balanced between price and performance as we are not the cheapest brand available but we are also not the most expensive one around. We offer a combination of good price and performance to the consumers.

Your products are said to be environment friendly too. Tell us more about it.

Ali: We are committed to make environment friendly products and the Brother Products have received Ecomark and Blue Angel certification from Europe. This is the toughest environment certification to get anywhere in the world and now-a-days in Europe, you cannot participate in tenders unless you have this certification. All our products are certified which means that the parts, components and materials we use to make our products are environment friendly and bio-degradable as much as possible. Our products consume very less power and, in laser products, we use separate toner and drum technology which means the materials used in those items are less dense and hence, more easy to recycle.

Tada: We are trying to be an eco-friendly company and we are now producing different models that can print on both sides of a paper and thus ensuing lower paper usage.

What is your volume wise sales target for the market here?

Ali: We keep an annual target for this market like any other market. Based on our distributor’s commitment and comfort level, we decide a target with mutual consent and increase it every year. So, in the last four years, we have grown four times and our plan is to grow four times further till 2015. We do have a very ambitious target and hope to meet it.

What are your strategies to meet this target?

Tada: We want to grow along with our distributors by taking care of the market. We have prioritised the Nepali market as it has a good potential. To make our business sustain and retain our customers, we need to provide good service to our customers besides sales. Once they buy a machine from Brother, the service they get from us determines whether they will choose to be a regular customer of Brother. The sales target for certain emerging markets will be introduced in due time and we believe that we will be able to achieve it.

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