Techzone analyses current market trends in technology
19 August 2015 04:38 am
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With 24 years of experience in commercial and consumer technology, Techzone Chairman Mohamed Naushad talks about market trends and local sentiments in the ICT arena. Techzone is Sri Lanka’s largest and only one-stop-shop for computers and accessories at the most competitive prices.
What are the current local market trends?
From a consumer’s point of view, I find that youngsters are using PCs for gaming purposes. Gaming is becoming quite a fad in Sri Lanka. Then there is another cross section that uses computers for education. It has come to a point where computers have become a necessity, rather than a requirement, which they cannot live without. From a global perspective, the tablet is the trend although in Sri Lanka the tablet cannot replace the PC because of its limitations.
Is there a difference in technology usage in private and public sector?
In today’s workplace, irrespective of what kind of company or business you run, a computer is required to increase productivity. Whether it is a small cash machine in a boutique or a signboard outside a mall or even inside a cockpit of an aircraft, computers have tremendously improved the way businesses operate in their respective industries. Technology has advanced so remarkably that those who are not using computers in their business are at a major disadvantage against their competitors. In particular, there are several important advantages that computers can provide to small businesses. So from cost-effectiveness, to speed, self-sufficiency and even research and development, computers are now a vital cog in any business.
Do you find that buyers will opt for cost over quality?
The thirst for education is very common in this country and parents encourage their children to study. As such, they are willing to spend on a good device. We find that 95 percent of our users are from average households who can hardly afford luxuries. But they are willing to spend up to Rs.50,000 on a good computer, which is about five to 10 years of savings.
Whereas globally, the popular models are mostly 11” models, our fastest selling items are the 13” models. We also sell a lot of the 15” models because these double up as TVs in most households.
Some say that computers have taken over the lives of the younger generation. Is this good or bad?
Well, like everything else, moderation is the best solution. Overuse can lead to the disruption of a social life and lack of social interaction. It is also the responsibility of the parent to ensure their child’s Internet usage is monitored and decide what’s right or wrong. In my opinion, 99.9 percent of the Internet is useful but that one percent can be disastrous if not controlled.
Also, Internet is a fundamental right in countries like Finland, France, Greece and Spain, etc., for instance. So, it’s an individual’s right and one that is extremely important if used in the proper manner.
How is business for your company TechZone?
We expect it to grow by at least 15 percent after elections. Once there is stability in the nation, then businesses will grow and this, in turn, will lead to resurgence in our industry. You must remember that for any company, IT is the biggest expenditure.
We have opened branches in strategic locations islandwide like Matara, Galle, Kandy and Kurunegala. This is to cater to the requirement from a growing consumer base from other parts of the country. There are university students, small businesses, schoolchildren who are now a major part of our business.
What can the government do to help this industry?
Sri Lanka is one of few countries that has the lowest taxes on computers and accessories. This is good as it then makes devices that much more affordable. Also, we see so many multinationals coming into this country, which also means that there is room for expansion in the industry and lots of room for growth.