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The emergence of Genius on the Indian IT landscapes |
Long back, firms like Logitech, Samsung, and Microsoft among host others ventured into the Indian hardware market with their IT peripherals, and lifestyle products. Over a period of time, they established their respective brands in the country, and succeeded nicely in notching up decent market shares in various product categories (like keyboards, mouse, web cams, headphones, speakers, and gaming components among others). But, the story with Taiwan-based Genius brand (of KYE System Inc) is slightly crispy. Around two years ago, the firm started its organized Indian operations, but the pace with which the company has ramped up its business in the country has truly impressed the industry watches. |
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With the growing maturity of cyber-age, the demand for sophisticated IT paraphernalia is increasing tremendously. Around the world, IT companies are engaged in making their products and solutions more innovative, and sophisticated. This quest is not confined to hardcore IT products like PCs, servers, storage, and networking alone, rather, the genre of IT peripherals perse, and numerous life-style products are also getting generous doses of augmentation, and innovation (in their design, ergonomics, look, and of course, functionalities).
In the overall digital-ecosystem, the importance of IT peripherals like keyboards, and mouse is overwhelming. In fact, people pass their quality time on PC by staying in intimate touch with these components. The IT industry round the globe, continue with their endeavor of making these products ergonomically conducive, and aesthetically provocative. There’re IT firms whose business models largely revolve round these two products. However, as the IT bandwagon advanced, other products joined the family of so-called IT peripherals (Items like web-cams, headphones, speaker systems, and gaming controllers including host others). Not only that, lifestyle gadgets (like MP3/4, camcorders, and photo frames among numerous others innovative products) also became the part of this holistic offering. Companies like Logitech, Genius, and Microsoft among many more run their business around IT peripherals, and lifestyle products. However, Taiwan-based Genius has a unique standing in this genre of business line-ups.
Genius’ prowess
Genius is the brand name of KYE Systems, a Taiwan-based company with $440 million (expected) revenue in 2007. The company, KYE Systems, with a global employee base of 4,040, is one of the top Taiwan-based IT companies that rubs shoulders with world’s frontline IT firms. |
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 The biggest challenge for us is to reach the psyche of the customers with ‘Genius as a brand’, much deeper into the Indian hinterlands |
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Sandeep Ramani,
Country Manager, KYE Systems (India) Corp
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KYE Systems, from its very inception, aimed at producing quality IT and lifestyle products for the global market. For its operational rationalization and efficiency, KYE Systems has got two separate divisions: the first being OBM (The Own Brand manufacturing), and the other OEM (The Original Equipment Manufacturing). Over a period of time, the revenue contribution from the OBM part of the business has increased to 59 per cent (while OEM continues with its decent 41 per cent revenue contribution).
In the Indian context, it’s only two years back when Genius as a brand, started its organized operations in the country. Sandeep Ramani, a well known IT figure with vast knowledge base about the Indian IT channels, took up the helm of the Indian operations as its (KYE Systems’) Country Manager. For the channels veteran in him, the development of ‘partners ecosystems’ was an obvious staging point for any further Indian advance. In an interaction with Digital Edge quite recently, Sandeep Ramani says, “I was knowing that I had to deal with highly sophisticated and appealing product line-ups. On the quality front, I was absolutely confident. So, right away, my first priority was to establish an expansive, exuberant, and credible network of channels in the country. In the first go, we appointed Delhi-based Transtek Infoways Pvt Ltd as our national distributor. Later on, Kolkata-based Tirupati Enterprises became our second distributor. Both of them did great jobs in the course of brand building around Genius”. Backed by quality products and organizational support from the company, the two distributors made the efforts in taking the brands to the Indian IT, and life style products market. “In shorter span of time, Genius products got very encouraging response from the Indian market”, says Ramani.
In the IT peripherals segment of keyboards and mouse, Genius as a brand, begun to be seen as a worthy competitor of the obvious players in India. For the ‘immediate PC-environment’ the company started offering products like webcams (also surveillance camera), headphones, gaming pads (including driving wheels, and joy sticks), scanners and speakers in the country. In the life style category, Genius introduced camcorders, digital still cameras, MP3 players, unified remote control, digital tablets, and photo frames among many others. “From the very beginning, our endeavour had been to make available the full basket of Genius products in the country. As a matter of fact, Genius is the only company that has got such a wide and diverse product repertoire for the IT, and lifestyle product consumers in the country”, says Ramani.
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Going forward, as the brand got the first round of market recognition, and appreciation, KYE Systems though it prudent to engage more distributors. “For us the intrusive reach of the company became the top operational agenda”, says Ramani. Thereby, in the month of August 2007, KYE Systems appointed two more distributors in the country: Ingram Micro, and Redington. Digital Edge sees these tie-ups a triumph of organizational prowess of Sandeep Ramani, and the partner eco-system he headed. Because, Ingram Micro and Redington, usually don’t shake hands with mediocre companies marked by flimsy market dynamism. With the alliances with these mega distributors in the country, the intense phase of KYE Systems in India has begun. “Now, we’ve a very dynamic ecosystem of three distributors, and thousands of channel partners in the country. This enhances our ability tremendously in terms of our penetration deep into the Indian market. Frankly, the biggest challenge for us is to reach the psyche of the customers with Genius as a brand, much deeper into the Indian hinterlands”, says Ramani.
In the basket
Like other digital products, keyboards and mouse get maximum infusion of innovation at KYE Systems. In the product category of keyboards, Genius has come out with some of the most advanced products. “On the one hand, we offer smart and functionalities-laden entry-level keyboards to the Indian consumers, on the other, our mid, and high-end keyboards are objects of desire. They’re truly advanced”, says Ramani. Genius offers a wide range of wired and wireless optical keyboards for multimedia, and gaming applications also.
So far as mouse are concerned, Genius offers a broad range of products. Like keyboards, the company comes out with wired and wireless optical mouse for various applications. However, in recent times, the prevalence of laser mouse (both wired and wireless) has increased across the globe. Genius has got a very rich product portfolio of laser mouse in the country. If we analyze, for instance, one of many laser products, a model like, ‘Ergo 555’ (a gaming laser mouse); this product gets the cutting edge technology of OELD (Organic Electro luminescent Display). The ‘Ergo 555’ has been empowered with ‘Dual Laser Vessel Doppler’ technology for more advanced tracking precision, and can adjust X and Y axis independently from 400 to 3200 dpi for different gaming purposes. Similarly, Navigator 805, (a 2.4
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The Laser Focus
The adoption of laser mouse in the country is not so rapid (this is true for most of the IT vendors operational in India). |
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There’re some reasons behind the slow-starter of laser mouse in India. “The migration from the ball-mouse to optical-mouse has been swift, and comprehensive. People could easily discern the tangible benefits of using optical mouse (both wired as well as wireless). But in the case of laser mouse, many functional differences with respect to its optical counterparts may not be very obvious to users (unless they’re educated about the rich features these products are imbued with). Laser mouse have got manifold superiority and advantages over optical mouse in terms of performance, and high-precision applications”, says Ramani. For him, laser mouse in itself is a ‘big project’ in India. A thorough plan of action has been devised around these product line-ups. “I’ve discussed the laser mouse market dynamics with my headquarters, and we’re getting full support from them”, says he. “In long run, I foresee that there would be widespread usage of optical mouse. The Indian market will have to switch over to laser mouse, because technically the laser mouse are far more accurate, and smooth than the optical mouse.
Genius is aware of this kind of psychological bottleneck around laser mouse adoption in India as well. “We’re working hard on educating our channels and the customers alike so that the conceptual shrouds around laser mouse get unveiled. Also, we’re very realistic about the price-sensitivity of the Indian market. Therefore, we’re launching entry-level laser mouse in the country very soon, which will be priced closer to those of entry-level optical mouse. We would be launching them at prices even below Rs. 500 with three years warranty attached”, adds he. Mind you, laser mouse can work on any surface (except glass surface). And colour of the surface doesn’t matter.
Also, ergonomics is the care, the concern for the mechanical aspect of the human existence. In most of Genius products ‘ergonomically correct’ realities have been integrated generously. |
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GHz wireless laser mouse), works at full 360° up to 10 meters with 2.4GHz RF technology, and offers better tracking power than LED optical mice. The mouse has got one extra hot key for security password function. “Our laser mouse repertoire is comprehensive, and the technology simply revolutionary. One can see the kind of innovation that have been imbued into these products portfolio”, says Ramani.
As the gaming culture is picking up, Genius has broadened the product portfolio under this genre (gaming paraphernalia). Thus, the firm offers a slew of quality gaming products, and accessories including Joystick, vibration game pad, and racing wheel. “It’s not the PC games alone for which we offer the right components, but even for gaming consoles (like Xbox, and PS2), Genius provides the required essentials”, says Ramani. A fair degree of sophistication has been incorporated into these products. For instance, Trio Racer FF (a force feedback racing wheel) that is compatible with Xbox, PS2, and PC), makes the gamers feel as if they are doing the real racing. It has also got the rubberized wheel for comfortable control and maneuverability. Another representative product, MetalStrike FF (a force feedback joystick for PC) lets flight gamers
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company has introduced Genius SW-V2.1 1255, a sleek 3-piece experience the effects of taking off, landing, stalling, bumps, and crashes in its totality. “The aviation simulation is awesome. Genius does this”, piques Ramani. Equally stimulating is the case of ‘Wireless Blaze X’ (a 2.4GHz wireless gamepad for Xbox) that creates a highly intense fighting scenario. The company provides wireless PS2 game pad called Wireless Blaze. The gaming product portfolio from the house of Genius is really wide, and stimulating. “We take the gaming culture to newer heights”, says Ramani.
In the category of headphones and earphones, Genius has come out with quality products (many of them are wireless based items) in the Indian market. Quite recently, the company launched eco-friendly Genius HP-02NC, a foldable noise-canceling headphone in India. This designed to eliminate any surrounding noise for music listening.
Genius is world-renowned brand in the speaker, and woofer systems. With great fanfare, the company has launched ‘Genius iTempo 800CD’, a speaker system for ipods. “Genius has extended its line of speakers for the iPods by introducing its latest iPod speaker, iTempo 800CD.This is a 2.1 audio system well equipped with an incorporated subwoofer, CD player, iPod dock, AM/FM tuner, USB flash disk slot and SD/MMC card slot”, says Ramani. Also, the
company has introduced Genius SW-V2.1 1255, a sleek 3-piece
40-watt speaker system recently. “The stylish looking ‘Genius SW-V2.1 1255’ speakers are the hottest little things to have on your desktop which would truly deliver impressive sound smooth, room vibrating, bass, crisp high and a midrange nearly perfect for gaming”, says Ramani.
In the Indian market, the company offers a broad spectrum of life style products that include digicams, still digital cameras, MP3 players, multi-purpose remote controllers, and photo frames among others. “In the lifestyle product category, we’re the only company in the world that offers such a diverse, and wide range of products”, says Ramani.
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Great work by channels
For Genius, all the BRIC countries (Brazil, Russia, India, and China) bream with full of potential, but the significance of India is unparalleled. “In India, Genius has experienced a growth rate of 200 per cent during the last two consecutive years”, says Ramani.
In the global operational scheme of Genius, the positioning of channels is tactically important. However, in India, the channel engagement under Ramani’s leadership is somewhat novel, and pervasive. “I think our distributors and the allied channel partners, have largely been instrumental in crafting such excellent results in the country”, admits he. For Ramani, the ‘channels samurai’, the Indian market is showing great promise for Genius line of IT, and lifestyle products.
The significance of channels can be gauged from the fact that over 80 per cent of Genius, India revenues come from this (channels) route. The tie-ups with Ingram Micro, Redington, and Transtek Infoways have brought thousands of dedicated channel partners into the Genius ecosystem. “On the vital fronts of number, reach and dedication of channels Genius is pretty well placed”, says Ramani. However, he is conscious of the fact that the channel partners need to be trained thoroughly about the Genius products and technologies. “We’re essentially an R&D driven company where newer technologies are embraced with much rapidity. So, this is a big task for us to keep our channel folks well informed about the products they deal with”, says he. Towards that goal, Genius, recently, completed its first phase of eleven city road shows cum training programmes in the country. In this phase, the firm covered 11 Tier-2 cities, which included Mysore, Coimbatore, Cochin and Hyderabad in South, Pune, Goa, Surat and Ahmedabad in the west, Jaipur and Lucknow in the North and Ranchi in the East. “Our basic purpose of conducting the seminars was to make the partners aware of the range, quality and design of Genius products. We want to convey to the people how effectively Genius brand can influence the lifestyles of its users”, says Ramani.
At the same time, the company is very much concerned about the profitability of its channels partners. “We’re keen to see that there are smiles on the faces of our channel partners. A satisfied, progressive, and ebullient lot of channel partners are what we desire in India”, stresses he. “Apart from healthy operational margins, we come up with exciting channel incentive programmes for them”, says Ramani. Recently, the company introduced ‘Dhanvarsha scheme’ offer for the channel partners, which includes the resellers as well as the volume partners (GVP). The scheme offered up to 120 gm of silver to the resellers or dealers. “Such promotional activities result in easy availability of our products that encourages our channel partners and ultimately creates good buying experience”, says he. The company also takes channel partners to exotic foreign locations as well. In every possible way, the company aspires to cultivate the relationships with distributors, channel partners, and the end customers nicely. On a regular basis, Genius keeps on providing various marketing collaterals as well.
Retails beckon
As the organized retail winds are sweeping across, Genius likes to avail of this opportunity rightly. “Under the Genius brand, we’ve the swankiest range of products that fit into the whole concept of organized retailing. The company gets 20 per cent of its total revenues out of its retail business in the country. This figure looks impressive at a time when organized retailing as such is evolving, and the likely shades of them would be guided by divergent demographic profiles. “I think, the face of organized retails in its better evolved phase would be clearer by the end of 2008 with a few more big player coming in, and some consolidation happening in
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In our reckoning, you’ve achieved decently by now. Your positioning among the IT VARs, and the channels community at large has got strengthened. How do you perceive your achievements in these two years?
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See, we’ve not achieved the much of you talk about. We’re modest on our Indian achievement profiles. With respect to the competition, we entered into this country very late. In fact, in a structured manner, we ventured into India just two years back. However, we’ve succeeded in creating a decent network of partner eco-system. We’ve partnered with top two distributors (Ingram Micro, and Redington) who have got wide networks of partners across the nation (of course, Transtek is another distributor doing good job). Our distributors-dealers fraternity works in a synergistic fashion. I think, in the realm of IT peripherals, and life style products, there’s still enough room for every one to grow.
You mentioned about the Ingram Micro and Redington. How tactically would you position these two distributors?
Their strength lies in their reach across the length and breadth of the nation. Apart from this, they’ve got well- experienced manpower spread over wide swathes of the Indian geography. On the front of IT peripherals, we’re very proactive in terms of making healthy bottom-lines for our distributors as well as our channel partners. Because of the quality of Genius products, and our very structured policies with respect to distributors (and channels as a whole), we’ve succeeded reasonably in getting a good place in the hearts, and minds of customers in India.
So, both Ingram and Redington are process-driven companies having their own strength, and flavours. On the other, Transtek Infoways has its own prowess, and can work with elevated flexibility. I think, we’ve got a good distribution combination in the Indian market. This makes us further emboldened in introducing even much wider product range in the country. They can handle any product volume for the competitive Indian market.
How robust is the post-sales service provision of the company in India?
In July 2007 itself, we tied up with Delhi-based RT Outsourcing Services Ltd as our ‘national service partner’. As of now, RT Outsourcing is providing services to Genius products in five locations including Delhi, Mumbai, Chennai, Kolkata and Bangalore. Apart from this, we’ve given the after-sales services responsibility to our distributors. They maintain buffer stocks, and can be approached by the channel partners or end customers for getting the warranty treatments around Genius products. You see, Ingram Micro has got 38 branches; Redington 38 branches; and Transtek Infoways has got 15 branches. From all these locations, post-sales services are readily available. Even in far-flung areas in the country, our distributors take care of the warranty issues. So, the combination of RT Outsourcing, and our distributors make the after-sales services facilities absolutely assured, and robust.
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