Xerox Still Selling Remanufactured Hp And Canon Toner In India

[Anonymous]

Xerox Still Selling Remanufactured Hp And Canon Toner In India
Xerox caters to cartridges for HP and Canon laser printers
By Francis D'Sa

 

 

Xerox, a well-known brand in the printing industry, went into partnership with Flipkart to launch a new range of laser toner cartridges for the Indian consumer. The laser toner cartridges are specifically designed and catered for HP and Canon printers.

Xerox claims that these laser cartridges are designed to take on the toner refilling market and make replacing laser toner cartridges as cheap as refilled ones. Their target is to revolutionize the 2400+ crore consumables market in India.

The company claims that the cartridges are branded by Xerox, are available for multi-branded printers and will additionally provide great savings to the consumer without compromising on quality. They further claimed that Xerox has a tried and tested business across 40 countries and now they have brought the same value proposition to India. Their partnering with Flipkart will offer a wider and deeper reach to the consumers across the country.

Deccan Chronicle went into a detailed conversation with Balaji Rajagopalan, Executive Director, Technology, Channels & International Distributor Operations, Xerox India, with regards to how this works, what benefits will it offer and how can the consumer gain from Xerox cartridges rather than using the genuine cartridges from the printer company itself.

Deccan Chronicle: Could you give us an overview of the technology business

Balaji Rajagopalan: Our focus for last couple of years has been to strengthen our channel network across India, primarily because our Go To Market is completely through our channel partner and we believe that our business can only grow provided the channel network is happy and growing themselves. Hence, it becomes very important for us to firstly identify the geographies where we need to be present and then make sure that our channel partners are existing and that they’re well equipped and trained in those areas.

So, couple of years back, we got a research done from a third party research agency and they gave us a list of 200 cities across India where the business lies and then we started mapping our strength of channel network across those 200 cities and we looked at who were our existing channel partners and if they were ready for the challenge, to grow. So, in the process what we did was replaced a few channel partners, added a few channel partners and now we are working with 300 active channel partners across the country.

Now, after we had put the channel network in place, the past one year we have focused on growing these channel partners and equipping them with the right technology, right training, and right expertise to be able to sell and provide services to the end customer. Now in the process, we have created different channel levers which work towards ensuring on-board training, business planning, rewards and recognitions program, to ensure it is a good return on investment for them.

DC: Which are the main cities Xerox is targetting? Is it mainly targeted more towards the metro cities or the Tier I/II cities?

BR: So it is a combination of all, metro, Tier II and III cities.

DC: Are the metro cities the main focus because of them being the main business centres?

BR: Yes, metro will always continue to be one of the focus areas. But now if I was to analyze the market place today, the majority of the growth is happening in the Tier II & III cities.

In terms of relative growth, the Tier II & III cities are growing. Again, if you dig deep in the market, growth is poised to happen in the SMB and the SMB is expanding again in Tier II & III cities. Same is the scenario with enterprises too and now with the government giving various opportunities, big enterprises are also looking at setting up offices in these Tier II & III cities. Hence, the demand on those cities are relatively more than in the erstwhile metro cities.

DC: Are these channel partners only from Xerox or are multi-branded partners?

BR: Well, it is a mixture of both. If I am to say, today we have around 40% mono brand channel partners and rest are multi-brand. If you are to look at the market, it is becoming more of multi-brand partners as you cannot stop anybody to do business and hence, it becomes very important for an organization to ensure a good value proposition for the channel partners.

DC: How many of these channel partners are only Xerox partners?

BR: As I mentioned earlier, around 40% of our partners are only Xerox partners. 60% are multiple brand partners.

DC: On the cartridges front, how does the manufacturer of the printer support this move? For example, how does HP react to this new business that you have brought in? Do they certify your products or promote it?

BR: What typically happens in the market place is we start competing with others, so it is not a question of promoting. Obviously, our competition will have their own cartridges and they will promote use of the same for their devices.

What we are offering now is Xerox branded cartridges that are manufactured to the exacting quality and standards that Xerox is known for. It is completely legal and it is not just any third party who is marketing these, these carry the Xerox brand and these have been made for use in HP and Canon printers. This brings in the confidence of quality and what really matters in the cartridges is the quality, reliability and yield and we make sure that the yield is as good and matches the quality produced as OEM’s cartridges.

DC: In short, you state that the printer manufacturer will not mind?

BR: Yes.

DC: Is the manufacturer of a printer recommending your product?

BR: You see, in a true market scenario if we are competing, obviously, we will continue to compete. I will push my cartridges and HP will push theirs.

DC: If in any case the printer goes bad, maybe or maybe not because of the cartridge, how does the printer manufacturer react to having a Xerox cartridge inside the unit?

BR: While the warranty policy of the printers is governed by the respective OEMs and they would be the best people to comment on it.  However generally speaking, in most cases the use of an alternate consumable brand does not impact the warranty of the product. The impact is usually limited to charging for any damage that might be specifically caused by use of cartridges of other brands. Given the quality of the product and rigorous testing it has been subjected to, users of Xerox branded consumables will have a smooth experience.

DC: If the cartridge is faulty and the printer is damaged because of it, who comes into play here?

BR: Our stringent standards and quality processes ensure that this does not happen in case of Xerox branded cartridges. We have tested this extensively and we always encourage the customers to try to try it out once to settle any apprehensions they may have.

What is also important to note is that today in the market, most of the printers are a year old and that is the period till when the warranty is applicable for. For this target segment, even this apprehension is not there and they can switch over to savings with Xerox cartridges even faster. This market is a 2500 crore market –and we want to tap it aggressively.

DC: What if anything goes wrong with the cartridge or the print quality? How can you assure the customer?

BR: The way we have assessed the market place, if I look at the home users, most of them use inkjet printers and our offering is for the laser printers. 

Secondly our target are the SMBs, enterprises and a very few home printer users. When you talk of 20-25% savings of cost, with each organization driving productivity, efficiency and saving cost, the opportunity lies there for us.

And lastly and most importantly, when we put the Xerox brand valued at $6.8Bn on a cartridge, we go to great efforts to ensure that quality is never compromised.

DC: Almost 80% consumers use refilled cartridge, does Xerox have any restriction on refilling or support it?

BR: We do not promote refilling and we have an awareness and education program for our customer, who talks to them about using original cartridges and avoid refilling.

DC: What happens to a cartridge which is empty, any recycling or refurbishing program?

BR: No, we do not have any such program in India. This is something we would like to get into, but nothing is decided as of now.

DC: What satisfaction does a client get that he is not using a fake cartridge with everything being identical today?

BR: A fake one not being distributed is very difficult to control. On and off, we are in touch with customs and conduct raids to ensure these things are minimized. A lot of these still continues to happen and apart from this, there is also a lot of local refilling that happens in India. It is really difficult to control such practices but we definitely do not promote distribution of fake cartridges.

DC: How, as an organization, do you ensure that a fake cartridge is not distributed?

BR: If a customer calls, we can check if it is original or fake. But, in our awareness programs, we tell our customers to throw them away, destroy but how far it happens is really difficult to say and it is not a problem with Xerox only but a problem that the industry is facing. We do have a serial no. in place for the cartridges and the customer has to get in touch with us in case of an issue.

DC: Coming to the sale of cartridge, I think you have tied up with Flipkart and it is only available there?

BR: So let me correct you, Flipkart is one of the ways. We also have channel network who are actually selling these cartridges in the market place. We have tied up with Flipkart to ensure that it is easy for SOHO segment and smaller SMBs and people in remote Tier II & III areas to get these cartridges. The local shops will not have these, but yes there is a channel network which has it across India.

DC: What happens in case the cartridge is not working?

BR: We will replace it immediately.

DC: What is the warranty on each cartridge that Xerox offers?

BR: There is no such warrantee but in case there is any problem we have equipped our channel partner to replace it until and unless it is physically damaged or consumed 80% for example.

DC: So how does a client understand the yield as it differs from person to person?

BR: So let’s say cartridge is empty and it becomes obvious then the cartridge is consumed. Right now it we are following a simple policy that we will go ahead and replace it if we receive any complaints. So if the cartridge is not giving similar result as the original would or any other problem, we will replace it.

DC: How long does the replacement take?

BR: It should be done immediately, that is the idea behind it. But let’s say on situations when the channel partners do not have it, they will ask us and immediately will be replaced.

DC: So who does a customer approach to for replacement, is there any toll-free or helpline number?

BR: So he approaches the channel partner he bought it from.

DC: Are you planning to extend these for the entry space and for Epson printers?

BR: No we are not going there.

DC: Are you entering this business for any other printer brand?

BR: No, not yet. We will see as we move along. You see, in a true market scenario if we are competing, obviously, we will continue to compete. I will push my cartridges and HP will push theirs.

DC: Thank You for your time Mr Rajagopalan. It was a pleasure speaking to you.

Xerox laser cartridges are presently available on Flipkart and also can be obtained from the Xerox partner networks. The toner cartridges for popular HP and Canon printers and will be extended further in the coming months. The prices of the cartridges range around Rs 2,000.  

 

Xerox Still Selling Remanufactured Hp And Canon Toner In India
Xerox caters to cartridges for HP and Canon laser printers
By Francis D'Sa

 

 

Xerox, a well-known brand in the printing industry, went into partnership with Flipkart to launch a new range of laser toner cartridges for the Indian consumer. The laser toner cartridges are specifically designed and catered for HP and Canon printers.

Xerox claims that these laser cartridges are designed to take on the toner refilling market and make replacing laser toner cartridges as cheap as refilled ones. Their target is to revolutionize the 2400+ crore consumables market in India.

The company claims that the cartridges are branded by Xerox, are available for multi-branded printers and will additionally provide great savings to the consumer without compromising on quality. They further claimed that Xerox has a tried and tested business across 40 countries and now they have brought the same value proposition to India. Their partnering with Flipkart will offer a wider and deeper reach to the consumers across the country.

Deccan Chronicle went into a detailed conversation with Balaji Rajagopalan, Executive Director, Technology, Channels & International Distributor Operations, Xerox India, with regards to how this works, what benefits will it offer and how can the consumer gain from Xerox cartridges rather than using the genuine cartridges from the printer company itself.

Deccan Chronicle: Could you give us an overview of the technology business

Balaji Rajagopalan: Our focus for last couple of years has been to strengthen our channel network across India, primarily because our Go To Market is completely through our channel partner and we believe that our business can only grow provided the channel network is happy and growing themselves. Hence, it becomes very important for us to firstly identify the geographies where we need to be present and then make sure that our channel partners are existing and that they’re well equipped and trained in those areas.

So, couple of years back, we got a research done from a third party research agency and they gave us a list of 200 cities across India where the business lies and then we started mapping our strength of channel network across those 200 cities and we looked at who were our existing channel partners and if they were ready for the challenge, to grow. So, in the process what we did was replaced a few channel partners, added a few channel partners and now we are working with 300 active channel partners across the country.

Now, after we had put the channel network in place, the past one year we have focused on growing these channel partners and equipping them with the right technology, right training, and right expertise to be able to sell and provide services to the end customer. Now in the process, we have created different channel levers which work towards ensuring on-board training, business planning, rewards and recognitions program, to ensure it is a good return on investment for them.

DC: Which are the main cities Xerox is targetting? Is it mainly targeted more towards the metro cities or the Tier I/II cities?

BR: So it is a combination of all, metro, Tier II and III cities.

DC: Are the metro cities the main focus because of them being the main business centres?

BR: Yes, metro will always continue to be one of the focus areas. But now if I was to analyze the market place today, the majority of the growth is happening in the Tier II & III cities.

In terms of relative growth, the Tier II & III cities are growing. Again, if you dig deep in the market, growth is poised to happen in the SMB and the SMB is expanding again in Tier II & III cities. Same is the scenario with enterprises too and now with the government giving various opportunities, big enterprises are also looking at setting up offices in these Tier II & III cities. Hence, the demand on those cities are relatively more than in the erstwhile metro cities.

DC: Are these channel partners only from Xerox or are multi-branded partners?

BR: Well, it is a mixture of both. If I am to say, today we have around 40% mono brand channel partners and rest are multi-brand. If you are to look at the market, it is becoming more of multi-brand partners as you cannot stop anybody to do business and hence, it becomes very important for an organization to ensure a good value proposition for the channel partners.

DC: How many of these channel partners are only Xerox partners?

BR: As I mentioned earlier, around 40% of our partners are only Xerox partners. 60% are multiple brand partners.

DC: On the cartridges front, how does the manufacturer of the printer support this move? For example, how does HP react to this new business that you have brought in? Do they certify your products or promote it?

BR: What typically happens in the market place is we start competing with others, so it is not a question of promoting. Obviously, our competition will have their own cartridges and they will promote use of the same for their devices.

What we are offering now is Xerox branded cartridges that are manufactured to the exacting quality and standards that Xerox is known for. It is completely legal and it is not just any third party who is marketing these, these carry the Xerox brand and these have been made for use in HP and Canon printers. This brings in the confidence of quality and what really matters in the cartridges is the quality, reliability and yield and we make sure that the yield is as good and matches the quality produced as OEM’s cartridges.

DC: In short, you state that the printer manufacturer will not mind?

BR: Yes.

DC: Is the manufacturer of a printer recommending your product?

BR: You see, in a true market scenario if we are competing, obviously, we will continue to compete. I will push my cartridges and HP will push theirs.

DC: If in any case the printer goes bad, maybe or maybe not because of the cartridge, how does the printer manufacturer react to having a Xerox cartridge inside the unit?

BR: While the warranty policy of the printers is governed by the respective OEMs and they would be the best people to comment on it.  However generally speaking, in most cases the use of an alternate consumable brand does not impact the warranty of the product. The impact is usually limited to charging for any damage that might be specifically caused by use of cartridges of other brands. Given the quality of the product and rigorous testing it has been subjected to, users of Xerox branded consumables will have a smooth experience.

DC: If the cartridge is faulty and the printer is damaged because of it, who comes into play here?

BR: Our stringent standards and quality processes ensure that this does not happen in case of Xerox branded cartridges. We have tested this extensively and we always encourage the customers to try to try it out once to settle any apprehensions they may have.

What is also important to note is that today in the market, most of the printers are a year old and that is the period till when the warranty is applicable for. For this target segment, even this apprehension is not there and they can switch over to savings with Xerox cartridges even faster. This market is a 2500 crore market –and we want to tap it aggressively.

DC: What if anything goes wrong with the cartridge or the print quality? How can you assure the customer?

BR: The way we have assessed the market place, if I look at the home users, most of them use inkjet printers and our offering is for the laser printers. 

Secondly our target are the SMBs, enterprises and a very few home printer users. When you talk of 20-25% savings of cost, with each organization driving productivity, efficiency and saving cost, the opportunity lies there for us.

And lastly and most importantly, when we put the Xerox brand valued at $6.8Bn on a cartridge, we go to great efforts to ensure that quality is never compromised.

DC: Almost 80% consumers use refilled cartridge, does Xerox have any restriction on refilling or support it?

BR: We do not promote refilling and we have an awareness and education program for our customer, who talks to them about using original cartridges and avoid refilling.

DC: What happens to a cartridge which is empty, any recycling or refurbishing program?

BR: No, we do not have any such program in India. This is something we would like to get into, but nothing is decided as of now.

DC: What satisfaction does a client get that he is not using a fake cartridge with everything being identical today?

BR: A fake one not being distributed is very difficult to control. On and off, we are in touch with customs and conduct raids to ensure these things are minimized. A lot of these still continues to happen and apart from this, there is also a lot of local refilling that happens in India. It is really difficult to control such practices but we definitely do not promote distribution of fake cartridges.

DC: How, as an organization, do you ensure that a fake cartridge is not distributed?

BR: If a customer calls, we can check if it is original or fake. But, in our awareness programs, we tell our customers to throw them away, destroy but how far it happens is really difficult to say and it is not a problem with Xerox only but a problem that the industry is facing. We do have a serial no. in place for the cartridges and the customer has to get in touch with us in case of an issue.

DC: Coming to the sale of cartridge, I think you have tied up with Flipkart and it is only available there?

BR: So let me correct you, Flipkart is one of the ways. We also have channel network who are actually selling these cartridges in the market place. We have tied up with Flipkart to ensure that it is easy for SOHO segment and smaller SMBs and people in remote Tier II & III areas to get these cartridges. The local shops will not have these, but yes there is a channel network which has it across India.

DC: What happens in case the cartridge is not working?

BR: We will replace it immediately.

DC: What is the warranty on each cartridge that Xerox offers?

BR: There is no such warrantee but in case there is any problem we have equipped our channel partner to replace it until and unless it is physically damaged or consumed 80% for example.

DC: So how does a client understand the yield as it differs from person to person?

BR: So let’s say cartridge is empty and it becomes obvious then the cartridge is consumed. Right now it we are following a simple policy that we will go ahead and replace it if we receive any complaints. So if the cartridge is not giving similar result as the original would or any other problem, we will replace it.

DC: How long does the replacement take?

BR: It should be done immediately, that is the idea behind it. But let’s say on situations when the channel partners do not have it, they will ask us and immediately will be replaced.

DC: So who does a customer approach to for replacement, is there any toll-free or helpline number?

BR: So he approaches the channel partner he bought it from.

DC: Are you planning to extend these for the entry space and for Epson printers?

BR: No we are not going there.

DC: Are you entering this business for any other printer brand?

BR: No, not yet. We will see as we move along. You see, in a true market scenario if we are competing, obviously, we will continue to compete. I will push my cartridges and HP will push theirs.

DC: Thank You for your time Mr Rajagopalan. It was a pleasure speaking to you.

Xerox laser cartridges are presently available on Flipkart and also can be obtained from the Xerox partner networks. The toner cartridges for popular HP and Canon printers and will be extended further in the coming months. The prices of the cartridges range around Rs 2,000.  

 

[Author]

October 16, 2014 at 12:20 PM