“Innovative Vendors can survive and thrive in the Mobility industry”

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Park Network Pvt Ltd is a New Delhi-based distributor and retailer of IT and Mobility products in Delhi and Noida (NCR). Park Network operates in 3 verticals:

  1. IT Distribution
  2. Mobile Distribution
  3. IT and Mo
  4. bile Retail

The company is headquartered in Nehru Place (Delhi), with Branch Offices in Wazirpur (Delhi), Noida (Uttar Pradesh) and Greater Noida (Uttar Pradesh), operating out of (4) distribution centers. Furthermore, Park Network is operating several Retail outlets, comprising of (3) in Noida (Uttar Pradesh), (2) in Greater Noida (Uttar Pradesh) and (2) in Indirapuram (Uttar Pradesh). Going by Brands, these outlets can be classified into (3) Lenovo Exclusive stores, (2) HP World, (1) Acer Mall and (1) Vivo Mobile retail outlet.

In an interaction with Mobility magazine, Ajaya Kumar, Managing Director, Park Network Pvt Ltd, comments, “Historically, our company was first to open exclusive IT retail stores in Noida, in the year 1998. Today, our main centers of business are Delhi and Noida – we are currently concentrating on these areas and have deferred expansion plans for the moment. Regarding our revenues, 80% revenue is contributed by the Distribution Vertical, with remainder made up of Retail. Broadly speaking, Distribution revenue is divided as 50% from IT and 50% from Mobile, whereas our Retail business is dominated by the IT vertical, with the exception of Lenovo and Vivo mobiles.”

Park Network’s Distribution Product & Brand Portfolio in IT includes LED Monitors (Samsung and AOC), Printers (Canon), PoS (TVS), Headphones (Sennheiser) and Laptops & Tablets (iBall). On the Retailing front, their Product Portfolio covers Laptops, Desktops and AIO (Lenovo, Acer and HP) and Security (Zicom). On the Mobility front, Park Network is into the distribution of Google, Vivo, Gionee, Lava, Panasonic, Asus and Intex smartphones.

Discussing the trends in the industry, Ajaya Kumar explains, “The current trend, in general, is that margins are coming down, both in IT and Telecom. The IT market is almost stagnant in terms of profits. On the Mobility side, though margins are decreasing, the revenues are increasing by 30% and there is room for growth. For a vendor to survive, innovation is the only means to maintain their market share and generate new business in the present day stagnant IT market. The more innovative the vendor, the longer and better he can survive and thrive in today’s competition. The brands should come up new innovations every now and then as the technology is getting outdated at an ever faster pace. Particularly in Mobility, new innovations keep coming faster than in other industries.”

Regarding service support, Ajaya Kumar adds, “In most cases, it is the vendor who provides service as well as warranty. For our corporate customers, we have our own service support team who work in tandem with the vendors’ service teams.” Keeping in mind the future, he adds, “We are looking to add more IT and Telecom products to our portfolio and expand our operations. Next, soon we are launching our own e-commerce portal, but we will be presenting only those brands which have a balanced approach to the offline-online mix, the ones that operate exclusively online or have price parity between the online and offline channel, so that it will not disrupt the traditional channels of business. We will not entertain predatory pricing on our ecommerce portal, and are stringent in this regard. Today, even the vendors have understood the importance of maintaining price parity so that offline channel can operate safely without fear or anxiety.”
Talking about GST, Ajaya Kumar remarks, “At present, GST is expected to solve the troubles of cascading tax. But, the government is not yet clear about many aspects of this law. If the government’s objective is, exclusively, to earn bigger revenues than before, then GST will be more burdensome, and can contribute to a higher inflation – which can ultimately affect the common man.”

Over time, Park Network has developed a team of dedicated, energetic, qualified and experienced professionals for providing end-to-end solutions in the field of IT Hardware, Mobility, Networking and Software. During the last two decades of their existence, Park Network has provided many innovative solutions to the challenging IT and Mobility infrastructure needs of customers, and to the smooth operation of channel sales across the Delhi NCR region.