Azerbaijan, Baku, Aug. 31 / Trend H.Valiyev /
Computer facilities manufacturing plant KUR is reducing its production capacity, General Director of the KUR open joint stock company, Rizvan Osmanov told Trend .
Drop in consumer demand was named as the reason for cut in production. Thus, a significant portion of customers has reduced significantly the contracts for the assembly. Today, assembly of technique is carried out exclusively under contract in small lots. In this connection the company was forced to send employees on leave and partly reduce the staff, Osmanov added.
At present, complement of workers in the production line is only 21 people, whereas more than 50 people worked on the assembly line earlier.
KUR forecasts its produce in 2009 to the lowest. The volume of orders decreased by 40 percent in 2009 compared to 2008.
According Osmanov, currently it is much more profitable to supply finished products rather than to order its assembly on site. Moderate and steady growth of domestic brands has been undermined by the massive penetration of worldwide vendors' products into the market. These manufacturers were able to show overwhelming growth by offering a broad product line of all types at very low prices, as well as a range of marketing and advertising actions.
Vendors have penetrated successfully into the budget niche, in which the position of domestic producers had been strong. At present, it is difficult for the Azerbaijani companies engaged in assembly, to compete with global manufacturers. Vendors have more brands, more opportunities to cover the market and hold the costly marketing efforts. Selection of channels played an enormous role to conquer the market. Companies bet on the biggest Azerbaijani distributors with extensive dealer networks.
Since the beginning of an aggressive policy of world brands in the lower price segment, the share of Azerbaijani producers fell significantly. As a result of weakened positions of the Azerbaijani brands, segment of the budget models was mastered by the other players of the world market.
Production of world manufacturers of branded computers unlike the local brand is the final product, attached together by a single trade mark, which guarantees the authenticity and quality of the product. Quality of such products is time-tested and was tested by the world's leading institutions. The global warranty, service centers in hundreds of countries, the full range of accessories and components, constantly produced and quickly delivered are the characteristics of the Brand-name.
The reliability of products of the leading international suppliers is much higher and satisfies the average buyer, who has a real chance to avoid appeal to the service center, the sellers said.
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