The retail channel in Latin America is following the overall market trend of growing acceptance of clone PCs as an alternative to international brands, according to International Data Corporation's (IDC's) newly released Profiles of Top Retailers in Latin America, 1998. Based on recent interviews with the region's top retailers, by the end of 1998, 81 percent of PCs sold from their stores will be international brands, with the remaining 19 percent representing clones or local brands. This is a significant change compared to 1996 when 93 percent of PCs sold at retail were international name brands. Compaq, the number-one seller of PCs in the region with 15.5 percent of market share, has an even heavier hand in the retail channel. In 1997, 41 percent of PCs sold through the retailers interviewed by IDC came from the Texas-based vendor. Acer follows with 21 percent and IBM with 13 percent. HP has less presence in retail with five percent of PC shipments among the retailers interviewed. For desktop printers, however, HP dominates with Epson in the number two position. "Many of the top computer products retailers in the region are mass merchants such as Carrefour in Brazil and El Puerto de Liverpool in Mexico. These two organizations and others like them are struggling to integrate computer products into an environment that previously focused on merchandising groceries and appliances. The battle to develop successes in retail has been more difficult due to the overall lack of resources committed to computer products - especially for advertising, staff training, and floor coverage," said Lauri Jones, director of IDC Latin America research. IDC's profiles of the region's top retailers show home consumers represent just under 50 percent of computer purchases, followed by the SOHO (small office/home office) segment with 30 percent of buying power. The segment that offers great opportunity - but is poorly represented in retail - is the corporate sector, estimated to represent just eight percent of computer purchases in the retail stores profiled. IDC also analyzed the payment/financing methods consumers are using at retail and found financing continues to be a challenge to the retail sector. For the retailers profiled, nearly 30 percent of buyers purchase PCs with cash or checks. More retailers are forming alliances with banks to offer users credit while vendors such as Compaq and Acer are beginning to aggressively market their own credit programs to lure in buyers. As a follow up to IDC's Latin American Distribution Dynamics of Retail and Alternate Channels (produced in 1997), this report series -- Latin America Profiles of Top Retailers, 1998 " details the 2nd study IDC has undertaken of the dynamic retail market in the region. This report series provides detailed profiles of 42 of the most important players in the retail channel in Argentina, Brazil, Colombia, Mexico, and Venezuela. The profiles include specific information on management, sales by category, products carried, merchandising, advertising, financing, training, and a perspective on the retailers" strengths and weaknesses.
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