ESCOM, the Irvine-based computer manufacturer and retailer, is
celebrating its first year of business in Scotland with the completion
of the initial phase of its UK expansion strategy. It started with a
prototype store in Glasgow and culminated last week in Newcastle with
the opening of its 24th outlet.
Operating from a 40,000 sq ft #2m warehouse and distribution plant at
Riverside Business Park, the company has been selling more than 2500 PC
systems a month. It now has a 2% market share and is on target for a
first-year turnover of around #30m.
Managing director David Smith reckons that much of Escom's success is
due to its philosophy of offering a ''touchy-feely'' experience when
buying a PC.
He said: ''We believe that what we're offering is quite unique. We are
a manufacturer, but we are also selling direct to the public via our
retail outlets -- you can't get any more direct than that. The whole
set-up in the stores is designed to encourage people to feel at ease
when they are buying.''
For anyone who has ever been intimidated by the prospect of selecting
a PC from the bewildering array of brand names and then installing
software, the idea of being able to ''test drive'' a fully-loaded system
must be pretty appealing.
Escom's no-frills strategy is aimed at the Soho -- small office home
office -- sector, and Mr Smith believes his company can compete with the
big boys in the PC world, even at a time when the industry is locked in
a price struggle to secure business.
He said: ''We don't have protracted distribution channels; we do have
low overheads and our sensibly-specified systems can be purchased
off-the-shelf preloaded with the appropriate software.
The company's future expansion plans include opening further stores in
the South-east and broadening its corporate customer base. It has
already achieved notable success in the educational and local government
sectors.
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