With the focus on extending its reach in SOHO, Home and SMB, TP-Link is looking to expand its team and channel partners in India by the end of this year. In an exclusive chat with Bill Ye, Director & Country Manager, TP-Link and Atul Jain, Vice President, Channel Sales, TP-Link, ITPV finds out the focus of the company and its channel business.
TP-Link is focused on SOHO, small users, and home users market at present. We want to provide good products at cost effective prices to make life more convenient.
- What are the solutions on offer?
We have three segments to cater to: the consumer, SOHO (small offices or Home office), and the SMB, where we offer different product lines. However, all the key products will complement each other segments. For example if a home user can own a router similarly an SMB can also own a router but SMB product cannot be used by a consumer.
Right now our focus is more on consumer and SOHO and 90% of our products go to consumer and SOHO.
- What is your go to market strategy?
Our strategy will be to ensure that both the markets have good growth path. Consumer and SOHO are growing at more than 20% and SMB has been growing 17% to 18%. We want to leverage both the segments. With the current 90% we want to exponentially grow and grab higher market share. However, on the smaller medium business with its 10% growth rate, we will again focus on higher growth plans. Today we have just 10% focus but in next financial year we are going to increase it more by deputing more sales manpower infrastructure, by preparing our product lines and our channels for the jump.
- What are the potential verticals for your business?
As far as consumer and SOHO is concerned the only thing which we find is that a Home which already owns a router can own a next category router as well. So the consumer markets we are approaching through our traditional retail channel as well as through LFR and online to reach to consumers.
- What are the value-added services TP-Link is giving?
At TP-Link, our bread and butter is networking. We have been a global company for the last 14 years and have never deviated from our policies. We focus on our networking product line and building up new technology, building up new product line and market our products all over world.
- What are your expansion plans?
Presently our TP-Link India team is 50 plus strong and we expect to increase the numbers to 100 by the end of this year. Presently TP-Link has its office in Delhi and Mumbai but in near future we will open one branch office in the South as well.
- How important are channels for TP-Link?
TP-Link started its business with channels only. So, we have our traditional partners and we have great regard for the partners who have been kind enough to get the TP-Link a chance to operate in the Indian market. We would not have been able to achieve the turnover we have if we did not have this support from our channel partners.
- What are your channel strategies, value addition services and schemes that you are running for channel partners?
TP-Link currently has 60 distributor partners in India and we are looking for smaller medium business. Right now we are looking for correct distributor partners and want to give an opportunity to the partner who can take up those SMB product line. We need partners who can bring us into SMB community with those SMB product lines.
TP-Link has invested a lot to control the quality of the product. It means our rate is limited and helps to ensure giver after service. TP-Link provides a better profit the partners compared to others.
We recently did one scheme where we distribute umbrellas on completion of target of selling routers for our tier 2 partners. As well as we have some rebate schemes for our distributor partners.