Dell tries new method to conquer developing markets

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Dell tries new method to conquer developing markets

Dell has said it will sell PCs in stores rather than just online, in a move to cater specifically to emerging markets.

The 'Direct from Dell' method of ordering PCs on the net, having them made-to-order then shipping them off doesn't seem to be working too well for the firm in countries where the Internet isn't yet a feature in every home.

The new approach, dubbed, will see the emergence of retail outlets in the developing world, all staffed by Dell worker bees, who will be able to help potential customers.

In this way, the company can stick to its direct, custom-made approach, while also becoming more accessible to first time PC buyers.

While slow demand has crippled company finances in the US, Europe and Asia, demand from Brazil, Russia, India and China have been bumping up Dell's revenues.

With 41 per cent growth on a 46 per cent increase in units in the last quarter, Dell is seeing three times the industry growth rate in those countries alone. And the firm wants more.

Announcing the new strategy, CEO Michael Dell said emerging markets were vitally important. "Five hundred thousand new users are coming on line every day, and a large proportion of these are in emerging economies," he said.

Strong growth in the mobile phone market across the developing world would also help PC sales, he added.

In a cheerily optimistic mood, Dell also said his firm would strive to become a 'one-percent company', giving away one per cent of all pretax profit a year to 'education and digital inclusion projects' by 2010.
Got a news tip for our journalists? Share it with us anonymously here. (c) 2010 Incisive Media

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