Dick Smith to sell Dell in NZ

Dell will teach Dick Smith staff about its products. Photo / Dean Purcell

Computer buyers will notice yet another brand on shop shelves from today, with PC giant Dell now selling some of its laptops and desktops through local Dick Smith stores.

Dell has previously shunned retail outlets, preferring the cheaper option of selling its technology directly to consumers over the internet and via call centres.

But the company's trademark "direct" sales strategy has been watered down over the past few years as competition in the home PC market has intensified.

Its computers are now available in tens of thousands of shops around the world, and New Zealand is the latest market where Dell has signed up a retailer to on-sell its products.

Evan Williams, Dell's general manager for consumer sales and marketing in Australia and New Zealand, said Dick Smith's 70 New Zealand stores would initially stock Dell's "entry level" Inspiron range of laptops, desktops and monitors.

Over time, the range of in-store products could expand to include some of Dell's more expensive computers, such as its Studio range, he said.

Williams said that while Dell expected online sales of its products to New Zealand buyers would continue growing, the company recognised that some customers wanted to "touch and feel" technology before they bought it.

The company was also talking to Dick Smith about developing in-store "kiosk" sales, where trained staff would help shoppers place orders using the Dell.com website, and the retailer would be paid a margin on sales.

"That's a trend in the market. We're going to look at seeing if we can get that going in New Zealand as well," Williams said.

The addition of the Dell brand to its shelves comes as transtasman technology retailer Dick Smith spruces up its image in New Zealand. This month it opened a new "concept" store in Auckland's Queen St and is planning similar upgrades to Wellington and Christchurch stores by year's end.

Dell began selling computers in retail stores in May last year through a deal with the Officeworks chain.

In May this year, Dick Smith Australia became the third Australian retail outlet to stock Dell products.

Matt Telfer, Dell's retail sales director for New Zealand and Australia, said the company would be replicating what had so far proven to be a successful approach in Australia: employing staff whose job it was to train Dick Smith sales people about Dell products.

"If the customer gets the right information and purchases the right system [for their needs], they'll keep coming back for more, and that's what's really attractive to a retailer," he said.

Dell also plans to boost another local sales opportunity: its relationship with mobile network operator Vodafone.

Since last year Vodafone has been selling Dell's Inspiron 9 Netbook (mini-laptop) with a built-in cellular network data connection.

Telfer said customer demand for small, mobile, network-connected computers was increasing, and a second Dell device was expected to be available to Vodafone customers within the next two months.

Dell is also a major supplier of IT equipment to businesses, a market where it is also diversifying the way it sells in a bid to increase its market share.

Last month it announced plans to sell more of its business hardware through third-party New Zealand IT suppliers.