Ericsson seeks to get closer to channels

Cindy Koh
New Straits Times
04-13-2000
Ericsson seeks to get closer to channels
Byline: Cindy Koh
Edition: Computimes; 2*
Section: Business News

PHONE company Ericsson Sdn Bhd has drawn up plans for better rapport with its local channels so that they in turn can provide customers with quality services.

First in the company's agenda is to educate its channels regarding the move to the mobile 3G or third generation era. 3G, considered as the successor of the global systems for communications (GSM), is coined to represent the convergence of mobile telephony and Internet which is rapidly becoming the telecommunications standard.
Ericsson's first-tier retailers especially have been requesting for more information and solutions due to the Internet factor in mobile telephony. Their main concern is lack of Internet facilities and know-how. This, they fear, will be a stumbling block when they start to sell wireless application protocol (WAP) phones.

"Our retailers have told us that the technology is moving so fast and new technology such as WAP is not user-friendly. And with operators coming up with new service packages every few days, they find it rather confusing," said Ericsson's vice president of consumer products, Vincent Chan.

To address this issue, the company has drawn up plans to set up facilities to keep its retailers informed.

One of the plans is to start a store programme which will bring retailers closer to their customers, Chan said. Under the programme, stores will be set up to help customers to know what they want when they walk in. The outlets will not only display new products but also include products and services that will be available in the coming three months. Unlike conventional phone retail outlets, customers will be allowed to handle the products before purchasing. The people manning the store will be trained to respond to queries regarding Ericsson's products and services. In other words, the stores will be customer-friendly.

Chan told Computimes in Petaling Jaya that three trial units of such stores will be installed by middle of next month at the KLCC, Mid Valley Megamall and SS2 respectively.

"These three units will run on a trial basis as we need to monitor the effectiveness and see what needs to be changed and improved," he said. Besides that, Ericsson is setting up service points - a small space which will be allocated at the retail outlets or stores by the appointed partners with phone line and Internet set-up - to provide phone services to their customers. Customers can wait or browse the outlet or store while their phones are being repaired.

"This is a good move to supplement our services and generate income for our partners," Chan said.

Besides giving incentive trips and organising roadshows, conferences and marketing campaigns such as launches and showcasing products at the coming CommunicAsia in June, Ericsson will provide training and product updates, either face to face or via the Internet, to its partners.

"Our mission is simple; we want to create happy and loyal customers through total customer service. Quality services will be perceived as value and this will attract customers to come back for more," Chan said.

He added that the total amount of fund for such activities has yet to be fixed as the company is still in negotiation with some of its "potential partners".

From Ericsson's observation, there are not enough point of sales for its products nationwide. Hence, the company is identifying some locations and justifying the cost before deciding on where and how to support its retailers and allow them to be familiar with the latest technologies.

Chan is confident that the company will be able to outpace its competitors in the local market, as 70 per cent of its business is infrastructure- or software-focused. According to him, the competitors are selling phones faster because they are able to build terminals faster. But, he said, the competitors are now realising the importance of building better infrastructure and looking at ways to strengthen the quality of their products.

Regarding new products which consumers can look forward to for the next six months, Chan said the company plans to roll out its rugged R310 series which is dustproof, shock- and water-resistant. One of the notable features is the Shark Fin antenna which is made from flexible rubber material to prevent the antenna from being damaged. The phone is expected to be available within the next two months.

Another new product is the Chatboard, an SMS (short messaging system) accessory which Chan believes will be popular among youths. Chatboard allows users to send and receive messages by typing onto the mini-keyboard replica which can be plugged into the mobile phone.

Chan informed that Ericsson's satellite phones will be coming out in August. This will be done in collaboration with satellite communications network providers like Globalstar and ACES. These phones will be distributed in countries where there is demand and the gateways are ready.

Illustrations/Photos:
Caption: Chan: Quality services to attract customers.

(Copyright 2000)