Xerox mounts challenge to HP in retail and Soho sector

Xerox has intensified its efforts to take market share from Hewlett Packard as it kicked off the first part of its attack on the retail sector.

The copier and printer vendor, which established an indirect channel division for its printer products 18 months ago, is looking to take on HP in all markets, focusing initially on the Soho and retail area.

Pierre Danon, managing director of Xerox, said: 'Our biggest mistake was realising too late the huge profits that could be made in the Soho and retail market.

'We entered the sector seven or eight years too late, but now the feedback we get from our resellers is that they need an alternative to HP. We intend to match it in everything, but be faster, better and cheaper.

'No one has replaced HP with Xerox on a large scale yet, but in a number of cases we have seen a lack of appetite from HP,' he added.

Danon said the manufacturer would continue to aggressively target superstores, but wanted to grow more sales through its Vars: 'We want resellers to make money, so we don't want any over-distribution,' he stated.

Xerox will also step up its targeting of corporates through direct account teams, with fulfilment then being referred back through the channel.

Danon said he was looking for the channel to generate 30 per cent of the company's revenue in the long term, which would account for 10 per cent of its sales.

Xerox is spending $300 million on a worldwide advertising campaign for the next two years in a bid to achieve this.