While some companies chose to stop operating in Brazil in the midst of the economic crisis, the Dell chose to double the bet in the country. Last year, when it launched XPS 13, notebook company, the company announced that it would start manufacturing computers in Brazil – the first production line for the product outside of China.
It was a strategy of Dell Brasil to offer competitiveness, reduce costs and pass on discounts to the consumer. The rise in the dollar associated with a increased demand for computers and notebooks – products that became essential to work and study at home – raised prices and, with the decision to manufacture locally, Dell was able to reduce the costs of its main product and compete in the Brazilian market.
The unit price of an XPS 13 before local production was 13,500 reais and the delivery time was up to 45 days. With local manufacture, the notebook was launched at 8,999 reais and 7 days of shipping. The dissemination and service strategy was also rethought: the company increased its presence on YouTube, with exclusive videos of its products in a channel that already accumulates 115,000 subscribers, and in WhatsApp to assist the sales team.
The result of the strategy was evident in the numbers: in the 6 months following the launch, Dell sold 40% more units of the XPS 13 than was expected for the first year after the installation of the production line in Brazil. Expected sales for the semester were achieved in 2 weeks. According to Diego Puerta, general manager of Dell in Brazil, the move was important and was accompanied by a long approval process with Dell global to bring notebook manufacturing to the country.
“The XPS 13 is a very differentiated and important product for Dell’s brand positioning in Brazil. We are the premium brand in Brazil, and it is an opportunity to consolidate that, having this product on a large scale, being seen and being used ”, said Puerta in an interview with EXAM. The executive also said that the demand was so high that it took 3 months to get his computer unit, since the company prioritized delivery to consumers.
Despite having reaped a strategy that paid off, Puerta says that the year was not a smooth one for the technology sector – in addition to the pandemic, the sector suffered from the impact of component availability at the beginning of last year and the strong rise in the dollar , which impacted the average price of computers and equipment. “Fortunately, we were well prepared and structured [para lidar com essa situação]. We passed with a minimal impact on the availability of components, but the dollar influenced it, ”he said.
According to data from consultancy IDC, the sale of computers, between desktops and notebooks, grew 6% in 2020, totaling 6.3 million units in the year. Notebooks alone account for 5 million of the total. The average price of the notebook ended last year at 4,299 reais, up 23.5% from the previous quarter. IDC expects the sector to continue growing in 2021, up 8.6% this year, with the continuation of the pandemic and a resumption of the corporate market – which has invested less in the face of the uncertainties generated by the pandemic.
According to Puerta, Dell also had a growth in the sale of peripherals and other products, such as keyboards, mice, monitors and retail consumers looking for items to improve the home office. The search for this equipment, and the decision to launch a premium model in the country, reflects a vision that Puerta addressed during the launch of the XPS 13 in Brazil: the computer is, today, the technological tool of productivity, while the smartphone is a connectivity and mobility tool.
A study by Dell found that a good, fast computer saves time of up to 23 minutes per hour for professionals, which is equivalent to 15 out of 40 hours of work per week.
Globally (Dell does not disclose numbers by region in its balance sheet), the company had a record year in sales, $ 94.2 billion, up 2% from 2019. Operating profit almost doubled, from 2.6 billion dollars to 5.1 billion in 2020, also a record. In the computer business, 50 million devices were delivered, an increase of 8%.
Puerta says that the company has also invested in expanding its business in the country, including storage and cloud, providing broader solutions to corporate users. “Dell was born from PCs, but infrastructure, cloud, storage, servers today have a very important weight. This is our great vocation ”, he said. This year, the company intends to invest on this front, with many companies looking for digitalization solutions for their businesses, especially small ones, looking for reliable partners.
But Dell continues to look at computers: in the scenario gamer, which has become a lifestyle, the company is expected to announce other investments and launches in Brazil during 2021.