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Sitting on a gold mine

By Damian Clarkson, ITWeb junior journalist
Johannesburg, 26 Jan 2004

BenQ`s new country manager believes SA has a lot to offer to IT companies.

After being appointed country manager of PC and technology manufacturer BenQ in September, Manoj Tripathi has been forming ambitious plans for the company in SA.

The arrival of BenQ in SA came through a partnership with Drive Control Corporation nearly two years ago. Tripathi says it was a move that served the company well. "They have done a very good job for us, getting our product into the local market."

Tripathi sees SA as a fertile environment for growth, specifically for IT companies. "We foresee a total of 850 000 PCs being sold in SA next year - that is a very sizeable amount," he says.

"Look at the players already here: Samsung, LG... everybody has seen the potential, and we don`t want to be left behind."

The high demand for LCD screens in particular will have some negative repercussions for the consumer, says Tripathi. "Right now the demand for notebooks is booming, so all the vendors are facing some shortage issues. This obviously means prices will rise. But we do expect prices to stabilise in the not too distant future, depending on how soon supply and demand evens out."

While the company plans to focus specifically on moving its LCD screens, Tripathi says it has brought a significant range of products to the country, ranging from CDs to cellphones.

These products will underline the convergence of IT products, says Tripathi. "We want our products to meet all our consumers` work needs, and then when weekend comes, to have something for their own enjoyment. That is why we call our products 'digital lifestyle devices`."

Speaking about his arrival in SA three months ago, Tripathi says setting up a business venture in SA is a difficult challenge.

"One must remember, SA is the furthest market from the developed world, so the product planning has to be there. You need to plan months in advance, and that is not easy."

Tripathi says there are various factors concerning dealers that are unique to this country. "The dealers here have a massive challenge. The main thing is convincing the customer about a new technology.

"South Africans want the whole array when it comes to new products. There is a trend among South African consumers to want the product with all the features.

"If you offer a product with one or two less functions at a cheaper rate, they feel they are getting less for their money - even if they are functions that they will probably never need!"

Tripathi adds that dealers in SA are also situated geographically far away, which means they are faced with challenges in terms of orders with distributors and timely delivery.

Making technology with all the functions is not the hard part. Making it simplified and getting people to use it, that is the challenge.

Manoj Tripathi, country manager, BenQ

With regards to the end-users of the technology, Tripathi feels this is not yet a big market in SA, but buying power is increasing.

"The end-users are still learning in SA, so we need to come out with some good interface products that are easy to use.

"Making the technology with all the functions is not the hard part. Making it simplified and getting people to use it, that is the challenge. That is what BenQ is involved in."

Speaking about the consumer, Tripathi predicts a positive future in store. "The future looks bright for the SA consumer. There will be stiffer competition for the vendors, and with it will come more competitive prices for the consumers."

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