The 2nd is the camera market - India is one of the fastest and largest growing markets for digital cameras, with shipments expected to jump from eight lakh units in 2007 to two million units by 2010. According to IDC, the Indian digital camera market was worth over Rs 1,000 crore in 2008 and is expected to grow further in 2010. India saw around 1 million units of cameras with memory slots being sold and the attach ratio for camera cards is 2:1 (global attach ratio). It has been forecasted by IDC that the number of units of cameras being sold in India will go up in 2009 to about 1.5 million and memory cards for imaging devices will see subsequent growth.
The 3rd is of USB flash drives - USBs are turning out to be powerful tools that are on demand this season across India. A USB drive today goes beyond just data storage and is the key to ‘lifestyle storage’. A USB allows a consumer to save any kind of data and use it anywhere he/she wants it. A USB plugged into a DVD player lets consumers watch movies, plugged to the car audio is an MP3 player and plugged into the laptop is a reservoir of information and backup data.
Also we see a huge potential in the computing segment with the advent of Solid State Drive (SSD) technology. As per IDC in 2007 half a million units of netbooks were sold worldwide. Market researchers International Data Corp. (IDC) recently hiked their projected worldwide sales of netbooks to reach 11 million this year, growing to 41 million in 2012. SanDisk sells its pSSD product line for the netbook segment, expecting to sell one million pSSD units in 2009. In addition, because SSD is expected to supplant HDD in the computing market, SSD-equipped notebooks will be a strategic market for SanDisk as market adoption accelerates. According to a report by Gartner One in five computing devices will have solid state drives by 2011/2012.
In the growing devices market - be it computers, mp3 players, mobile phones or cameras, the sole differentiating factor that gives these products an edge is flash memory. The higher the capacity and performance, the more value is added to the devices. It is for this reason, that we are driving the ‘high-capacity & high-performance’ message with the consumers through promotions and other activation programs and with channel partners/distributors thorough training programs and incentives.
Q. What kind of consumer trends do you foresee for the adoption of flash memory products in India market?
A. Indian youth, urban Indians and the growing middle class is becoming more and more digitally savoir-faire. A recent study by Nokia for example suggests that Indians are gradually shifting to a lifestyle that demands 360° entertainment and progressive technology to keep up with the fast paced life.
According to the same study, ‘convergence’ devices and accessories that aid them are on a rise as well.
- The need for higher capacity will be seen in terms of increased demand for USB flash drives as well with safety enhancements to ensure security of data and the ease of having and sharing content anywhere, anytime. This trend has already started seeing the light of day with the new year seeing unprecedented demands for high-capacity and high-end USBs.
- While the mobile phone, digital cameras and MP3 player markets will see a slowdown in 2009 due to decreased consumer spending, the need for higher capacity will remain. NAND based memory cards are hence, expected to have a healthy demand due to a diversified usage– makeshift pen drive, projectors, gaming consoles.
- Increased demand in Secure Digital High Capacity (SDHC) cards is another trend that will take shape for sure in 2009 as the demand for high definition based digital cameras and camcorders with need for more memory keeps increasing.
- SSD is one of the applications of flash memory which is gaining market demand and is expected to perform as a key growth driver in near future. Hence, NAND based SSDs will grow in capacity and will be put to use with netbooks and laptops increasingly making these devices a lot more efficient and lighter.
Q. SanDisk’s retail marketing strategy – globally and in the Indian context; plans for retail expansion in India?
A. SanDisk’s strategy is to work with key retailers and distributors to offer the broad range of SanDisk products. The company continues to build its retail presence in a growing number of key cities and urban centers and is leveraging the growth of the consumer electronics products such as digital cameras, computers and mobile phones.
Q. Is India a key market for SanDisk?
A. India is definitely a key market for SanDisk Corporation. India has been witnessing rapid adoption of consumer electronics such as mobile phones, digital cameras, personal computers and digital music players. There is an explosion in digital content necessitating the need for higher memory/storage and SanDisk is uniquely positioned to capitalize on the storage needs of these large, fast-paced markets. SanDisk has been at the helm of flash technology revolution and with innovation steeped in our DNA, we have been able to shift the market for flash memory from mere ‘data storage’ to ‘lifestyle storage’ today. We see two major markets for our technology and products.
The first market is the mobile market. Mobile memory card has seen evolution to a large extent in 2008 in India. Hence, the largest selling product in the SanDisk portfolio in India is
the Micro SD card due to mobile phones having an attach rate of 28 percent to 80 million phones sold last year. Also we see a huge potential in the computing segment. As per IDC in 2007 half a million units of netbooks were sold worldwide. Market researchers International Data Corp. (IDC) recently hiked their projected worldwide sales of netbooks to reach 11 million this year, growing to 41 million in 2012. Hence, SSDs is a big bet for SanDisk going forward. According to a report by Gartner One in five computing devices will have solid state drives by 2011/2012.
Q. What are the latest initiatives SanDisk is doing for the Indian channel fraternity?
A. SanDisk has recently announced the launch of an incentive program aimed at creating awareness about high-capacity, high performance cards in multiple cities. This incentive program is designed to complement the expected surge in sales in coming months. During this time frame there will be a considerable increase in consumers clicking and sharing more pictures & videos, downloading music, which means an increased need to store them. We will also give premiums, sales kit to partners who achieve their targets.
Q. Is channel important for flash memory products' in Indian market?
A. Channels play an extremely significant role in furthering the growth of flash memory in India as they act as a bridge between SanDisk and its existing, potential & prospective customers. Since SanDisk portfolio includes mobile and camera cards and USBs as well therefore we are also present in photo channels, mobile channels, IT channels and consumer electronics channels in order to popularize our products in each category.
Q. What new is SanDisk bringing to the table for the Indian market?
A. SanDisk has unveiled new product packaging for India, making it easy for consumers to recognize and understand the benefits of our products. The new packaging is designed to enhance the customer experience with SanDisk’s brand and products for Indian consumers.
In developing the new packaging, SanDisk initiated a global survey in which consumers noted several preferences about the design:
- More prominent – At the bottom of the new package, SanDisk's logo is highlighted. The product features are highlighted on the front of the package, and detailed product functions are indicated at the back。
- Much clearer – The new packaging clearly states product capacity and transmission speed, and provides consumers with a more distinct product classification.
- More visual - Transparent packaging is used for Standard and SanDisk Ultra products, to better display products and help consumers find what they need more easily.
- More consistent - The new packaging displays SanDisk's expansive product portfolio in a clearer, more consistent manner.
Q. What are SanDisk’s future plans for India market?
A. SanDisk’s strategy in India is to provide consumers with the highest quality products with the best value. The company offers a wide range of products that are ideal for a variety of uses including a range of cards for digital cameras and camcorders, USB flash drives and cards for mobile phones. SanDisk’s strategy is also to work with key retailers and distributors to offer the broad range of SanDisk products.
Indian youth, urban Indians and the growing middle class is becoming more and more digitally savoir-faire. A recent study by Nokia for example suggests that Indians are gradually shifting to a lifestyle that demands 360° entertainment and progressive technology to keep up with the fast paced life. According to the same study, ‘convergence’ devices and accessories that aid them are on a rise as well. Flash memory caters to this want of having technology ‘on the move’ through thumb-nail sized mobile and camera cards and easy to carry USB flash drives.
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