Few have been fortunate enough like Premier Farnell, which, despite the economic slowdown, have not felt its negative impact. In fact, the company established operations in India 10 months ago, defying the usual norms of recession and in a short span, has seen a growth of 20 per cent every quarter. “Recession has had a positive influence on us,” says Nader Tadros, director, commercial marketing and e-commerce, Asia Pacific, Premier Farnell, in a conversation with Jesus Milton Rousseau S of Electronics Bazaar.
Tuesday, June 16, 2009: EB: Has recession affected your business worldwide or in India? What steps are you employing to keep it at bay?
Every downturn has opportunities embedded within. We offer customers a multi-channel variety of over 450,000 stocked products from 3,500 world-class suppliers. So, our business is not impacted massively. Even if some of our products stop doing well, we have others to fall back on. Recession hasn’t really affected the market demands. People still want the slimmest phones, etc. However, recession has increased the pressure on the design engineers to design products that are more cost-effective, business-efficient and green due to fierce competition. This consequence of recession has had a positive influence on us as design engineers rely on us to provide them with solutions and services.
To stay at the top of the game, we strive to provide the best and fastest services to our customers. For instance, we deliver products in 24 hours and have additional lines—Alter and Cree products—for the benefit of design engineers. We are focusing more on the electronic design engineers (EDE) space, which is growing steadily globally. Also, we are operationalising web-based business and maintaining our MRO base. We supply value-added services like peel packaging so that products can be safely delivered without any damage and re-reeling. Entering India, China and Eastern Europe was another move towards growth. Our prime strategem to combat the economic downtrend is to concentrate on operational excellence. In fact, we are targeting a $25-million mark by 2012.
EB: How much does India contribute to Farnell’s APAC region revenue?
India contributes only a meagre percentage to the overall revenue of Farnell’s APAC business as of now because we only commenced direct operations in the country 10 months ago, with one office in Bengaluru. Now, we have nine offices across major cities—New Delhi, Kolkata, Mumbai, Pune, Ahmedabad, Coimbatore, Hyderabad, Chennai and Bengaluru.
Considering that we are relatively new in the Indian market, Farnell India has grown immensely, thanks to the customer-centric strategy that it has applied. We are proud to declare that we are growing by 20 per cent, quarter on quarter in the Indian market. The company’s headcount in India is 80, across profiles like field sales, marketing, customer support and contact centre operations, which will lead to a further increase based on business demands.
EB: What are Farnell India’s marketing strategies—present and future?
In order to comprehend customers’ needs thoroughly, we have adopted a highly data-driven approach. We offer web experience and check whether it is meeting clients’ needs. We ask customers what their needs are and invite suggestions on how we can fulfil them, from the business standpoint. Then, we decide on how we can innovate solutions in order to become value-added partners. By virtue of being an international organisation, we are able to leverage systems processes or tools and adapt locally.
In the future, we aim to delve deeper into the Indian market. We are trying to woo Indian customers by offering them prices based on the Indian rupee standard, along with doorstep delivery. Our agenda is simple—offer customers what they want. We wish to be value-added distributors for low-volume customers. Delivering the right set of products at the right price, at the right time and serving the EDEs are our guidelines to growth.
Our website proffers a wide range of accessories for products and alternate products for obsolete products. It also proffers reduction of hazardous substances guidance, etc, to win the hearts and attention of customers. We want to add value proposition to the design community and share the benefits that an international organisation can bring to the local markets.
EB: What are the challenges you have encountered on Indian soil?
India is a geographically-diffused country, which can make marketing challenging. In order to counter this problem we use the multi-channel approach. We have nine branch offices in India, call/contact centres and a fully functional website, which enable us to pervade almost all parts of the nation.
Another impediment is the existence of various unbranded products in the market, which increase competition. However, Farnell has full faith in its genuine and authorised products and doesn’t feel insecure with the soaring popularity of the unbranded variety.
EB: Can you share with us the fast moving products and verticals of Farnell India?
In India, we have an abundant demand for semiconductors, connectors and passives (capacitors and resistors). Also, high performance analogue is another category where we receive steady orders. In terms of verticals, the burgeoning design engineer and MRO segments come to mind.
Electronics Bazaar, South Asia’s No.1 Electronics B2B magazine
