Date:21/11/2006 URL: http://www.thehindubusinessline.com/2006/11/21/stories/2006112101940400.htm

Back `Huge untapped PC market in 4 Asian nations'

Ambar Singh Roy

Small businesses present big opportunity, says AMI

Major hurdles
They believe that PCs are not relevant to their line of business.
Lack of knowledge about installation and operations are also deterrents.

Kolkata , Nov. 20

There is a huge untapped market for personal computers (PCs) among non-PC-owing small businesses in four of the most populous countries of Asia i.e. India, China, Indonesia and the Philippines.

According to a study conducted by the New York-headquartered Access Markets International (AMI) Partners Inc, 75 per cent of small businesses — that employ less than 100 people — in these four countries do not own PCs. There lies a huge untapped demand for vendors to convert them to PC-enabled businesses. Forty per cent of the small businesses in India, over a third in China and about a quarter each in Indonesia and the Philippines have expressed their intent to buy PCs within the next 12 months.

The study states that China and Indonesia plan to spend relatively higher amounton desktop PCs. With the "touch-and-feel factor" being crucial for non-PC small businesses — especially among those with low levels of computer literacy — the retail store is the most preferred channel for buying computer hardware.

At present, PC penetration among small businesses in China has been pegged at 33 per cent. This is followed by the Philippines at 24 per cent, India 22 per cent and Indonesia at 18 per cent. A majority of the non-PC small businesses in these four countries employ between one and nine employees and a bulk of them belong to the wholesale and retail sectors. However, China is an exception in this regard with 50 per cent of its non-PC small businesses forming part of the manufacturing sector in that country.

According to the study, the prime hurdle to PC penetration among small businesses in these countries is the belief that PCs are not relevant to their line of business. Lack of knowledge about installation and operations are also deterrents. Interestingly, availability of funds or funding options is not a barrier.

"A concerted effort by PC hardware vendors to convince and educate non-PC small businesses about the usage and utility of computers will go a long way in clearing the way for faster PC penetration among small businesses in this untapped markets," the study states.