A pioneer in building channel ecosystem

In a scenario where IT networking segment in India is moreover dominated by Taiwan brands, one Indian brand is giving tough competition to MNC products. Groomed under the dynamic leadership of K R Naik, Smartlink Network Systems Ltd is one of the leading companies in the networking domain that are building its own Indian MNC brands. K R Naik, Executive Chairman Smartlink Network Systems Ltd. smelt the future of the networking segment at a very early stage and laid a strong foundation of the industry creating a channel ecosystem. Naik has been contributing in the growth of Indian networking for over four decades now.

Journey of Smartlink

Smartlink witnessed exiting journey which is full of ups and downs. Since inception Smartlink has grown to No.1 position in networking products for the SMB, SOHO and Consumer segments and Naik’s efforts have been largely responsible for the company’s strong standing in India.

Naik founded Smartlink Network Systems in 1993. Smartlink entered into a joint venture with D-Link Corporation of Taiwan in 1995.The company got listed at stock exchange in 2001. In 2004, Smartlink launched DIGICARE service and support, with RMA and DSD centers across India. The Company demerged in 2009 and erstwhile D-Link (India) Ltd. was renamed as Smartlink Network Systems Ltd. with SCS range of products under the brand name DIGILINK as focused Business and the D-Link brand business was spun off.

Expanding its product range, Smartlink launched DIGISOL, range of active networking products in Converged Communication in 2010. Going ahead Smartlink got into manufacturing of new brand in motherboards by launching DIGILITE. In the same year transferred DIGILINK brand business to Schneider Electric under a BTA.

Nourished ecosystem of channel

Naik is one of the entrepreneurs who have played critical role in creating a channel ecosystem for the networking industry in India. Naik pioneered several new distribution models when the concept of an IT distribution channel was just introduced to the industry.

“In the late 90s when PC assembling was the only business, there was no vivid presence of so called channel in the industry. As different products started coming in the concept of channel came in picture”, recalls Naik.

Applying different distribution model, Naik created a completely new channel for products and rather than going after large distributors, he decided to concentrate on the regional distribution model. He created a network of nationwide and region wise dealerships to achieve pan India penetration. Naik established and nurtured formidable relationships with vendors and channel partners that helped the company to further escalate the growth.

Emphasizing on the importance of the channel Naik says, “Channel is a significant element in brand building. The channel is the strength of Smartlink business.”

Smartlink is one of the few vendors who have overwhelmingly voiced against price cutting at online marketplaces. “We do not encourage price cutting as it not only hampers partner profit margins, but adversely impacts the entire ecosystem of the channel.”

Evolution of channel

Naik has witnessed the evolution and development of the channel. He says channel building is much easier today compared to late 90s. Nick strongly feels that credit facility is the most important reason for the existence of the channel.

As the E Commerce industry flourishing at a rocket speed in India, Naik says that certain products will go for internet sale. However, traditional channel will keep its existence alive. Naik feels that to prosper in business it is important to maintain healthy relations with distributors as well as resellers. He says that partners deserve good margins and services as they are instrumental in brand building and making it available to the masses.

(With inputs from Nivedan Prakash)