Sunday, April 18, 2021

Dell bet on Brazil in the middle of the pandemic. And reaped good fruit

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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.

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