Xerox recently launched a new product line in India, offering a range of original Xerox laser cartridges for select HP and Canon A4 printers. These cartridges are available at Flipkart, which is the exclusive online partner, and with Xerox channel partners. Vipin Tuteja, executive director, technology, channels & international business, talks to financialexpress.com on how this unique business line enables the company to offer high quality cartridges for multi-brand printers at great value:
Why did you launch cartridges for non-Xerox A4 laser printers in India?
Xerox has always prided itself on providing innovative and quality products/value to its customers, which are in line with their current business needs. We have launched this new, unique business line in India that enables us to offer high quality cartridges for multi-brand printers at great value, thereby benefitting customers who maybe using printers of other brands. It will also help in creating a new base of customers for Xerox.
Xerox has been running this business successfully in more than 40 countries worldwide. We are confident that with the great value proposition that we offer, it would do extremely well in India. In the initial phase we are offering cartridges for popular A4 laser devices of Canon and HP. The range will be expanded to cover more devices in coming months.
Has this been done by Xerox in other countries? How has the response been so far? How is the feedback been from your set of customers?
Yes, this is already a successful global business for Xerox in nearly 40 countries, and as we now bring the same value proposition to India, we are confident that the Indian customers will also adopt it.
We have received an enthusiastic response both from the market and our customers here. We are confident that it will do well with our partnership with Flipkart and our extensive channel partner network.
Are these supplies already available in India? Is it only available on Flipkart?
Yes, these supplies, apart from being available through Flipkart, would also be marketed by our extensive channel partner network.
Under the agreement, how many product SKU’s as well as units of cartridges are covered?
We are offering the full range of Xerox Replaceable cartridges through Flipkart. And as we expand our range, the new SKU’s will also be available online.
What are these cartridges priced at?
The price of these cartridges varies by the SKU but most of these are being offered at a special introductory price of Rs.2000/- onwards offering a savings of 30%-40% on the current OEM cartridges.
How would you maintain/offer the same quality at a reduced price?
We have worked out a different business model that allows us to offer the cartridges at a lower price without compromising on the quality of the cartridges. As the inventor of laser printing, we know the business and the technology very well which allows us to ensure that cartridges that we offer are consistent with Xerox standards of quality and meet world class benchmarks.
The new products are rigorously tested for the Indian environment. These products undergo quality testing in Xerox labs to ensure that cartridges meet the required quality specs from first print to last. Then, every cartridge is print tested before packaging. Periodic, random cartridge audits ensure consistent quality each and every time.
Where do you see this business five years from now?
A4 laser consumables is Rs 2,500 crore+ market and it continues to grow well. With our offering of high quality cartridges with a great value proposition for the customer, we have witnessed a very good response for this business globally and expect the same trend here in India.
Considering the Indian market landscape, where price acts as a huge factor in decision making, we are hoping for a strong upswing in business since we offer an unmatched value proposition to the customer with great quality product at an attractive price.
Why did Xerox plan to tie-up with Flipkart for rolling out this particular business line, when its competitors such as Canon have pulled out of all such e-commerce portals associations, focusing more on physical store sales? What is the merit you see in tying-up with Flipkart for such a roll-out?
Flipkart is India’s most preferred e-commerce platform that offers great value to its customers through its online marketplace and we’re thrilled to be partnering with such a strong online brand. It also adds a lot of convenience to the customers at a click of the button and gets the product delivered 24×7.
The exclusive online marketing association with Flipkart will allow us to extend the use of Xerox branded supplies to users of multi-brand printers across the country.
Xerox does not have a retail presence as its sales only through channel. With this Flipkart agreement is there a change in GTM strategy for Xerox in India?
No, there is no change in our GTM strategy for Xerox in India. We will continue to sell through our partners and they will remain an integral part of our business model.