ASEAN KEY DESTINATIONS
Indonesia among top 10 key emerging markets for Dell
Dell Indonesia says that the country is one of its “top 10 global focuses” as growth factors, including an expanding middle class, are expected to catalyze its business in both the commercial and consumer segments.
“Indonesia and Thailand are the only Southeast Asian countries in our top 10 emerging markets. Other countries on the list include China and India,” Dell Indonesia and Southeast Asia developing markets managing director Saleh M. Munshi said on Monday.
He added that this year, Dell would maintain its focus on the commercial segment, which drove “more than 50 percent” of its overall business here.
Dell’s commercial business involves the sale of servers, storage, IT services and software to a clientele of large and small enterprises.
“Enterprise is a critical area for us, and one that continues to grow,” he noted, adding that the enterprise segment had seen stable double-digit growth in the past year.
International Data Corporation (IDC) data said that Indonesia was forecast to spend roughly US$16.8 billion on information technology (IT) this year.
“There are more and more customers — whether large or small and medium businesses — that are looking to take advantage of cloud-based technologies to improve not only their efficiency but also their growth and profitability,” Munshi said.
He added that the second big driver was the “huge amount of data” being generated on Indonesia’s economic accretion. Indonesia’s gross domestic product (GDP) is estimated to rise between 5.8 to 6.2 percent in 2014.
He pointed out that high-use of social media among the Internet-connected population had also resulted in heavy data traffic among telecommunication providers.
“Next generation providers are trying to figure out how to maintain and manage the traffic, and all the pictures and voice clips we’re sending are creating a need for more and more storage,” Munshi said.
Telecommunication providers have indeed been among Dell’s biggest clients in Indonesia, in addition to financial services institutions and government bodies, according to Munshi.
IDC data said that up to 83 percent of IT spending this year would be driven by the communication, financial, manufacturing and consumer sectors.
Meanwhile, Munshi pointed out that in the consumer segment, Dell had “gained one spot” in terms of market share in the fourth quarter, and had been growing “faster than the market” as well.
“It is a market in which we are much lower in the ranks but one in which we see a substantial amount of potential in Indonesia,” he said, noting the country’s expanding population and middle-income class.
McKinsey estimates that 90 million Indonesians will have entered the consumer class — defined by annual net incomes surpassing $3,600 — by 2030.
Munshi added that Dell Indonesia was “in expansion mode” in the consumer segment, and would introduce more personal computer models and form factors, including tablets, alongside industry trends.
Dell Indonesia introduced at least 15 new models of personal computers under 9 product lines, including Alienware laptops and Dell Precision workstations, in the local market last year.
Munshi added that the products set for launch this year would continue to address the different price points in demand by the market, further noting that the $300-$500 price range was popular.
He added that Indonesia remained an “extremely attractive market”, although the elections and the weak rupiah could slow overall industry growth this year.
“While there are short-term concerns and slowdown in Indonesian business, the long-term potential
remains very positive,” he said.
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