Where Dell Sells With Brick and Mortar

In crucial economies overseas, its old direct-sales model hasn't paid off

Buying a computer, putting it in your trunk, and driving home with it may not seem revolutionary--unless that computer is a Dell (DELL). The company pioneered made-to-order, direct-to-customer PC sales, and boasts on its Web site that it can introduce the latest technology "more quickly than companies with slow-moving, indirect distribution."

Now, as its global market share slips, Dell Inc. is giving that slow-motion model a closer look. The company is cautiously becoming a brick-and-mortar retailer, a path that has paid off big-time for rival Apple Inc. (AAPL) but which hobbled computer maker Gateway Inc. (GTW) In October, Dell will open a store in an upscale Moscow mall. That follows the introduction of a similar outlet in downtown Budapest in April.

These aren't the simple kiosks found in some U.S. malls, where consumers can try out Dell machines but must place an order for later delivery. Although operated by local partners, these stores stock only Dell PCs, which shoppers can buy on the spot and take home. "In Hungary, Internet shopping is not as widespread as in the U.S. or Western Europe, so it is very important that people can come to the brand store," says Tamás Damján, country manager for Dell Hungary. Dell won't detail plans for stores elsewhere, but hints that more are likely.

Not long ago, this approach would have been sacrilegious, but Dell needs to find a way to tap into emerging markets. In Russia, for instance, laptop sales are growing about 50% a year, but Dell only ranks eighth, with a 4.2% share, according to researcher IDC. In desktops, Dell doesn't even make the top 10. To boost its share, the company needs stores since, like most emerging countries, Russia lacks the home delivery services needed to support direct sales, and customers have little experience with e-commerce.

The stores in Budapest and Moscow represent just the latest move toward traditional retailing for Dell. This year, the company started selling at Wal-Mart (WAM) in the U.S., Carphone Warehouse (CRWHF) stores in Britain, and Bic Camera outlets in Japan. And on Sept. 24, Dell announced it was teaming up with China's biggest electronics retailer, Gome. After nearly a decade in China, the second-biggest computer market after the U.S., Dell has less than 10% share among corporate buyers there and only 2.5% of consumers. That's in part because the Chinese enjoy shopping in stores and find delivery inconvenient. Dell is also considering traditional retail outlets in India, another market with vast potential but similarly poor conditions for direct sales.

Selling in retail stores exposes Dell to new challenges: anticipating what kind of PCs consumers will want and managing inventory. With direct sales, Dell builds only the machines that customers order. And it's not clear what competitive advantage a PC from a Dell store has over a machine from a rival with more retailing experience.

While Dell's retail presence may signal the start of a fundamental shift in strategy, it isn't yet large enough to add a lot of sales. At the 500-square-foot Budapest store, about 50 to 100 people visit on a typical day, and sales usually amount to a couple of PCs or laptops daily. On a recent weekday morning, only one customer is in the store: György Fischer, a 48-year-old information-technology manager for a government research institute. Although he hasn't yet pulled out his wallet, Fischer says he's thrilled with Dell's Latitude 620 notebook and its three-year guarantee. Says Fischer: "I don't know any other companies that offer such a long warranty."

戴尔的店面销售
买一台电脑，放在箱中，然后驾车回家似乎并不具备革命性，除非那台电脑是戴尔的。戴尔公司开创了直接面向顾客的定制个人计算机销售模式，并且以其网站能够比动作缓慢的、非直接的分发销售公司更快地引进最新技术。现在随着市场占有率的下降，戴尔公司现在正在重新审视传统的慢动作的销售模式。戴尔公司正在小心翼翼地向实体的零售商转变，苹果公司（Apple Inc.）凭借此道取得了成功，但是电脑制造商杰威公司（Gateway Inc.）却因此蹒跚而行。十月，戴尔将在高消费阶层的莫斯科购物商场开一家店面。这是继四月在布达佩斯市区引入相似的渠道后的又一举措。地点的挑选并不简单，要找那些顾客能够尝试戴尔机器并且随后会下订单的地方。虽然这些销售点由当地合作伙伴运营，但是只卖戴尔的个人计算机，在那里购机者可以当场买下并带回家。“在匈牙利，网络购物并不如美国或者欧洲普遍，所以人们能够进入品牌店购物是非常重要的。”戴尔驻匈牙利业务经理Tamás Damján这样说道。不久前，店面销售的方式还为戴尔所不屑，但是它现在需要找到占领市场先机的道路。例如，俄罗斯的笔记本电脑的销售以每年50%的速度递增，而戴尔的市场份额只有4.2%，排第八。像许多新兴国家一样，俄罗斯也缺少直接销售赖以支持的送货上门服务，顾客对网上商务几乎没有经验。所以，为了提高市场占有率，戴尔需要销售店面。