GIGABYTE betting big on Gaming motherboards

Colin Brix,
Marketing Director, GIGABYTE Motherboard Business Unit, Technical Marketing Department.

Focusing on gaming motherboards, GIGABYTE is leveraging the vacuum created by the exit of its prime competitor Intel from the motherboard market. Moreover, the company is also keen to set up Service Centres and Exclusive Centres in India. Colin Brix, Marketing Director, GIGABYTE Motherboard Business Unit, Technical Marketing Department. in his conversation with VARINDIA divulges the big focus of the company for India and the revival of the DIY market            
                                                                                                                                                                 
What is new at GIGABYTE?

We have launched 9 series products. We have very expensive high end to low cost gaming motherboards such as H81, H91 and H97. We try to have as many products as we can fit it to as many regions and end users we have.

GIGABYTE is trying different form factors such as Mini ITX which is a very small motherboard. We have also introduced new system called Brix. These are designed by the server team. We also have gaming versions, motherboards with discreet graphics- NVIDIA desktop graphics, one with Iris Pro graphics known as Brix Pro, some cost effective products using Intel Bay Trial and also have fan less solutions. We tried to evaluate different segments in the market and form factors.

In how many places does GIGABYTE have its manufacturing units?

GIGABYTE has its headquarter in Taipei and has one of the manufacturing units here. Interestingly, we are the only motherboard manufacturing company in Taiwan. It makes our work faster if we remain close to the manufacturing unit. Besides, we also have units in China and Brazil.

What is your focus on the Indian market?

GIGABYTE is planning to invest heavily in after sales services. There is a good focus from HP currently for India market. Moreover, as Intel has already left the market so we see a growth in the market and for that we are planning a good infrastructure development in terms of Service and Exclusive Centres in India. We have Exclusive Centres in Ahmedabad, Kochi, New Delhi, Kolkata and Mumbai but in some areas Accel Frontline is providing services for us.
The company has bought a bigger place in Mumbai exclusively for GIGABYTE for an Exclusive Centre with GIGABYTE’s own engineers. Gradually it will be replicated pan India.
 
What other investments is GIGABYTE planning in terms of Channel engagement? What steps are taken to educate Channel?
We conduct channel partner meets regularly focusing more on Class B and C cities. Every quarter, we conduct at least 10 such reseller meets. The main objective of these meets is to engage, educate, and enroll Tier 2 and Tier 3 resellers in the upcountry markets.

For the GIGABYTE 9 Series Motherboards, based on the Intel Z97/H97 chipsets, we had channel launch events in seven India cities in June 2014.

GIGABYTE is focusing on gaming motherboards this year and chalking out plans how to gain ground in the segment. We have already launched some gaming motherboards for that.  Indian gaming market however is only 2% of global gaming market.

The company is also intending to invest in development of the DIY (Do It Yourself) market across India. Since the C and D class cities are unable to get quality CPUs, we are planning to organize programs that will educate C and D city people and end users of DIY market .It is still in the initial stage and we are strategizing the move. 

What is your focus on Tier 2 and 3 markets?

We have an ongoing online point redemption scheme named GIGABYTE Value Partner Program (GVPP), designed for Tier 2 channel partners. In GVPP, partners get points on the purchase of GIGABYTE motherboards. These points are subsequently redeemed to get prizes enlisted under the program.

The scheme is open only for registered reseller partners who buy GIGABYTE motherboards from the company’s authorized distributors and GIGABYTE Premier Partners.

To be qualified for this latest scheme, partners have to register themselves on the GVPP Website, on which they have to enter the purchased motherboards’ serial and check numbers to win reward points. As partners will win gifts worth the same amount as the number of points earned by them, more purchases will ensure more prizes. Also, partners can earn more points by purchasing higher end motherboards.

We also run a channel loyalty program under which we take our committed partners to a holiday trip abroad annually.
As per GIGABYTE’s business structure, we have a set of T1 partners and for Tier 2 we can touch any number. T1 are the volume buyers and T2 are System Integrators.

What are the growth objectives of the company. Which segment is supporting the most?

One of the big focuses is gaming as it is a big factor for growth of the motherboard industry. We may see a 3-5% growth and for that the 9 series motherboard range has many gaming motherboards. In 9 series product range there are 12 gaming motherboards. We are hopeful to take market shares from our competitors. GIGABYTE is doing good in terms of growth.

India has always been a price sensitive market. Entry level or value segment contributes around 75-80%. This market is not matured for the high-end motherboards.

Globally, in past couple of years the mid market has decreased a bit and seen growth in high and low end because of tablets and cell phones.

What is the Brand acceptance of GIGABYTE globally and in India?

Talking globally we are at No. 1 or 2 in most regions and in US we are at the third position because Intel is at the top there. But now that they have exited motherboard business we are trying to get some business from there.
aparna@varindia.com