“Digital marketing will be our new focus”

VIVEK SEIGELL, COUNTRY HEAD (RETAIL), HCL INFOSYSTEMS

Aware of the dynamics of the complicated digital space, Seigell feels that an equal-partnership franchisee model is very critical in digital retailing...

How does HCL sustain itself in the dynamic digital retail space?
From our traditional businesses we ventured into retail in 1995. Prices were astronomical then. We used to sell a PC at around Rs.1,10,000 and used to import the software. That’s when we reached out to the market with a reliable mechanism and did direct selling, road shows, et al. And after gaining adequate experience, we launched HCL Digilife in 2007. I think we understand the dynamics to operate in this very complicated environment.

Do you have exclusive tie-ups for Digilife?
We really don’t have anything like an exclusive tie-up. And we just don’t want to end up confusing the customer with myriad of brands. And the one commitment that we expect our team members to display is to sell the customer what they think is best for them.

What is your franchisee model?
Our franchise model is an equal-partnership model and not a minimum guarantee model. It’s a model where everyone is equally involved. Also each of the shops is manned by one of our store managers. This gives us more control. In addition we are training our people on customer interaction and franchisee relationship. So if the involvement is decent from both sides, the model will be successful. But if any of the partners fails, it will be a complete failure.

What are your plans for digital marketing?
We have already initiated digital marketing. It will be our new focus. I prefer calling it digital marketing over e-Commerce because I hope it will embrace m-Commerce also. We have tied with major portals and are also launching our own portal for selling and I will oversee that too.

What about the customer service standards in India?
Customer service standards are deplorable in India. I keep telling my colleagues that India deserves a slowdown. We deserve it because we care so little about our customers. We aspire to change that, at least in our stores. We would ensure that HCL Digilife customer doesn’t suffer.

Where do you see HCL Digilife in the near future?
We plan to reach the mark of 120 stores in the next 8-10 months. In addition we are planning on these smaller stores too called Digi-Express. They would be located in smaller towns. Customers in these towns yearn for good ambience and good service. We would be opening around 80 of them in the next 8-10 months. This takes the total to 200, over and above the 700 traditional stores that we already have.

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Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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