Tue, Aug 17, 2004 - Page 10 News List

Dell caters directly to local customers to grab more sales

By Amber Chung  /  STAFF REPORTER

US-based Dell Corp is making inroads into Taiwan's consumer and small and medium enterprises (SMEs) market. Last weekend the personal-computer dealer inaugurated its first display site here.

"According to our survey, consumers still hope to see the actual product before placing an order over the Internet," Mike Shih (石國揚), Dell's Taiwan general manager, said.

In light of fierce competition over computer-distribution channels, the Kiosk display site located in KMall, a newly opened computer outlet near Taipei Main Station, is expected to help Dell reach consumers as well as SME customers, supplementing the company's online direct-sale model, Shih said.

The consumer market currently accounts for around 30 percent of Dell's Taiwan sales, Shih said. He declined to comment on the company's sales goals for the segment.

Taiwan is the fourth country in the Asia-Pacific region in which Dell has established such a display site, following Australia, Japan and Singapore, he said.

The company shows its desktop and laptop computers and answers customer inquiries at the site, but does not sell products at the display booth.

Consumers can place orders for customized products online with the help of attendants at the display site.

KMall, which positions itself as a computer department store with more style than other computer distribution channels such as Kuanghwa Market (光華商場), said it drew 100,000 visitors and made NT$100 million in sales over the weekend after its grand opening.

The mall expects to see sales of NT$2 billion in the first month after opening, KMall marketing director Roger Huang (黃仁禮) said.

Taiwan saw sales of 528,000 PCs during the first quarter, according to International Data Corp (IDC).

Dell was rated in seventh place, while the top five brands -- Acer, HP, IBM, Asus and Tatung -- took about 37 percent of market share, IDC said.

Dell was the world's No. 1 vendor in the second quarter.

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