Navigating the Evolution of IT Distribution: An In-Depth Conversation with Mr. Vibhor Agarwal from Supertron Electronics

Team IndiaIT360
16-Sep-2024
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Navigating the Evolution of IT Distribution: An In-Depth Conversation with Mr. Vibhor Agarwal from Supertron Electronics

With over two decades of steadfast dedication, Mr. Vibhor Agarwal has been a cornerstone in transforming Supertron Electronics' retail operations and amplifying its market footprint. Through his dynamic leadership, the company has undergone remarkable evolution, rising from a regional player to one of the most influential brands nationwide. His strategic foresight and unwavering commitment have not only fueled the company's impressive growth but have also diversified its brand portfolio, establishing Supertron as a formidable force within the industry.

In a recent interview with IndiaIT360, Mr. Agarwal offered a compelling glimpse into his journey with Supertron, delving into his experiences and sharing valuable insights on the pivotal factors shaping the IT industry, particularly in the realm of IT distribution. Let's read his full-insight:

IndiaIT360: Sir, could you share some insights into your professional journey and background?

Mr. Vibhor: My career spans over 30 years, with a significant portion dedicated to my role at Supertron. This role has been a pivotal element of my professional journey. While my earlier experiences in IT laid a strong foundation, it is the distinctive lessons learned at Supertron that have truly shaped my path. Our focus on pure distribution has been instrumental in driving our growth over the past decade. Initially operating on a more regional scale, we have since refined our business model and significantly expanded our reach. At Supertron, I oversee all aspects of sales and distribution across various verticals, including primary stock and sales, value-added services, online channels, and large-format retail. This multifaceted approach enables us to engage with different market segments effectively and adapt to evolving industry demands.

IndiaIT360: Supertron has evolved from a regional brand to a prominent player in the industry. From your perspective, who has been more challenging to manage—OEMs or your own team?

Mr. Vibhor: In my experience, neither OEMs nor our team has been particularly challenging to manage. Success is fundamentally a product of robust support from both sides. At Supertron, we foster a family-like culture that has been integral to our impressive growth from a 100-crore to a 7,000-crore business. Our team members, many of whom have been with us for years, are essential to our achievements. Effective leadership is key here—Mr. Bhandari’s clear vision and methodical approach have been crucial in guiding us. Both the brand and the team are indispensable, and as long as we maintain clarity and logic in our operations, we continue to receive strong support from both.

IndiaIT360: You oversee the company’s retail operations. What challenges have you encountered in distribution?

Mr. Vibhor: Distribution certainly comes with its own set of challenges. As the market evolves, so do credit management practices, which has made certain aspects of distribution somewhat easier. However, India's vast and diverse geography demands a significant investment in manpower for effective partner and city mapping. Balancing the thin profit margins with high-volume sales while managing substantial credit risks is a constant challenge. Additionally, sustaining growth requires ongoing marketing efforts and expanding our partner network, all while grappling with rising expenses and the need to maintain profitability. These factors make the distribution landscape both complex and dynamic.

IndiaIT360: How do you balance traditional distribution with value-added distribution?

Mr. Vibhor: Traditional distribution and value-added distribution fulfill distinct roles, each vital to our strategy. Traditional distribution is centered on bolstering the brand’s market presence and streamlining logistics. It provides local inventory and billing solutions, which helps reduce our partners' capital investment and operational burdens. On the other hand, value-added distribution is more about enhancing the value proposition we offer. We focus on supporting small to mid-sized system integrators who might lack the necessary infrastructure or technical expertise. By delivering comprehensive pre-sales, technical, and commercial support, we empower these partners to expand and succeed. Our value-added distribution efforts are particularly concentrated in specialized areas such as AV, surveillance, and storage, where we can provide significant added value.

IndiaIT360: How have e-commerce portals impacted your distribution strategy?

Mr. Vibhor: Initially, there were concerns about how e-commerce would influence traditional distribution channels. However, in mature markets, e-commerce now represents 30-35% of the industry. Rather than replacing traditional distribution, e-commerce has become a complementary force, enabling brands to showcase a broader array of products online. It has become an integral component of our distribution strategy. The primary challenge is maintaining price parity between e-commerce platforms and traditional channels. Effectively managing this balance ensures a harmonious approach that leverages the strengths of both distribution methods, enhancing our overall market presence.

IndiaIT360: What key trends or emerging technologies in IT distribution do you foresee impacting your business over the next five years, and how are you preparing for these changes?

Mr. Vibhor: The IT distribution landscape is bifurcated into commercial and consumer sectors, each influenced by evolving technologies. One major trend we’re observing is the rapid advancement of AI, which is set to drive significant growth across both consumer and enterprise markets. Despite IT penetration in India being lower compared to developed nations, there is substantial room for expansion. The pandemic has notably accelerated advancements within the industry, and the growing potential of refurbished technology is also noteworthy. To navigate these changes, we are proactively staying abreast of industry trends and continuously adapting our strategies to align with emerging demands. This forward-thinking approach ensures we are well-positioned to leverage these technologies and capitalize on new opportunities as they arise.

IndiaIT360: Lastly, how do you ensure that customer service and support align with your clients' evolving needs, and what strategies do you use to maintain strong relationships with both customers and suppliers?

Mr. Vibhor: In the IT distribution sector, direct customer support is typically managed by third-party service providers appointed by the vendors, rather than by distributors. Our primary focus is on addressing issues related to new products and offering robust support to our partners. We are committed to ensuring that our partners receive prompt assistance, even when challenges originate from the brand. For those with exclusive distribution rights, we closely align with both the brand’s vision and the needs of our clients, providing comprehensive support while maintaining stringent financial and logistical discipline. This commitment to support and alignment has been instrumental in our evolution from a regional to a national brand. We continue to uphold these principles to foster strong relationships and drive ongoing success.

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