Acer allocates 30–35% of its overall marketing budget to South India: Sooraj Balakrishnan

From its early beginnings in the 1990s to the establishment of its first manufacturing facility in Pondicherry in the early 2000s, Taiwanese major Acer has grown into a household name in India’s consumer technology space over the past 26 years. Today, the brand has a strong presence across over 18,000 PIN codes and holds the third position in India’s PC market. Acer Group ranked third in the overall PC market with a 14.8% share in Q2 2025 and 15.1% in 1H 2025. 

Unlike many brands whose stories revolve primarily around metropolitan hubs, Acer’s journey is deeply rooted in South India, which has been a cornerstone of its growth. “We allocate around 30–35% of our marketing budget to this region and cities like Bengaluru, Hyderabad, and Kochi contribute significantly to our sales,” said Sooraj Balakrishnan, Head of Marketing and Associate Director at Acer.

In an exclusive interview with e4m, Balakrishnan, explained why South India is a key market for the brand, what makes it unique, the company’s expansion plans in the region, the challenges it faces, and more.

South India: The growth engine

In just one year, Acer has moved from its fourth spot in the PC market to now securing the third position. Beyond key marketing strategies and expansion into key markets, the brand attributes much of its growth to South India, which it considers one of the most important drivers of its success. 

While Acer is now a household name across India, its journey has deep roots in South India. From its first manufacturing facility in Pondicherry to setting up its initial R&D unit, the brand’s story extends far beyond metropolitan hubs. This South India connection has gained renewed focus in recent years, as the brand has increased investments in the region. Acer has been ramping up its presence through regional campaigns and retail expansion. A case in point is its recent Onam campaign which as per Balakrishnan delivered 20–25% higher market growth in Kerala compared to the previous year. Currently, the company allocates around 30–35% of its overall marketing budget to South India, and festival campaigns such as Onam and Pongal have consistently delivered strong growth.

Beyond marketing campaigns, Acer has expanded its physical footprint with flagship stores and Acer Plaza outlets in Bengaluru, which bring together PCs and appliances under one roof. According to Balakrishnan, what makes South India particularly important extends beyond its Bengaluru base. 

The region’s organised and regional retail networks—ranging from large gaming stores in Kochi to regional chains in Kerala and Telangana—enable the brand to reach its target audience effectively. “The demographic here is largely young, cosmopolitan, and digitally savvy, with disposable income and a strong affinity for new technology. South India’s consumers are early adopters, and show high engagement with gaming PCs, high-ASP devices, and smart appliances like air purifiers.”

Balakrishnan shared that several factors have been driving Acer’s growth in South India, making the region a key market for the brand. According to him, this strategic focus is driven by the region’s high-tech adoption and readiness to try new products, an affluent and digitally engaged consumer base, seasonal sales spikes linked to regional festivals, and the opportunity to test new devices and product lines before rolling them out nationally. 

The south conundrum

Balakrishnan shared that marketing and advertising in South India comes with its unique set of challenges compared to other regions. One of the primary complexities lies in the region’s linguistic diversity. Unlike the North, where a single Hindi creative can cater to multiple states, South India has four different languages and distinct cultural nuances, “It’s not a one-size-fits-all strategy.”

He added, “We have specific budgets allocated for each state and execute deep marketing campaigns tailored to regional languages and cultural contexts. This regional touch helps us connect with consumers at a local level and resonates well with the audience.”

Another key challenge he mentioned is the seasonal variation in sales patterns. While some South Indian states like Kerala see significant spikes in sales during festivals such as Onam, other states treat festivals more as celebrations than shopping occasions. “Unlike Diwali in the North, where shopping surges massively during festive seasons, in the South, sales are more evenly spread throughout the year, though we do see predictable peaks during local festivals,” Balakrishnan added. He said this makes it essential to have a well-planned, consistent marketing presence rather than just concentrated festive pushes.

A localised media mix and the rise of esports

From a media mix perspective, Balakrishnan explained that Acer’s strategy in South India is highly localised. In Kerala, TV and newspapers remain strong channels due to high viewership, while radio plays a significant role in Bengaluru, where a large working population commutes daily. Tamil Nadu has a strong association with movie branding and in-theatre promotions, whereas Karnataka sees high digital adoption, with out-of-home advertising also performing well in Bengaluru due to frequent travel. Similarly, in Hyderabad, a mix of traditional and digital channels helps the brand reach its target audience effectively.

Compared to 2024, Balakrishnan added that while there hasn’t been a major shift in the overall media mix, the brand is witnessing the growing importance of community-focused platforms, especially within the gaming ecosystem.

He pointed out that with the rise of passion-driven careers and entrepreneurship, many consumers are using gaming PCs not just for gaming, but for content creation, photography, and other creative pursuits. “One of the biggest focusses of our marketing strategy now is esports,” Balakrishnan said, highlighting an upcoming Gaming League tournament in Bengaluru on October 11th, which will bring together some of the country’s best esports players. This as per him will reflect on Acer’s deep investment in building and nurturing the local gaming community.

Balakrishnan noted that the target audience in South India is increasingly engaging with non-traditional digital platforms like Reddit and Discord, moving beyond Instagram and Facebook. This shift towards highly niche, community-led digital ecosystems signals evolving consumer habits. By investing in these platforms, Acer aims to position itself at the forefront of this change, ensuring deeper engagement with young, tech-savvy users.

Acer’s growth playbook 

The Bengaluru-based brand’s rapid rise as the fastest-growing PC brand in India stems from its well-crafted growth playbook focused on innovation, deeper market penetration, and community engagement. In the last year alone, the brand increased its festive advertising budget by 22% compared to 2024.

With its origins in Taiwan, Acer’s first-mover advantage plays a critical role, backed by strong R&D from its Taiwan headquarters. This enables the brand to bring cutting-edge technologies to market early. In parallel, the brand has been very aggressive on its retail expansion front, growing its exclusive store presence from around 160 stores in 2023 to 260 stores today, with a special focus on Tier 2 and Tier 3 cities. These markets now contribute significantly to growth, supported by regional marketing efforts, local-language creatives, and partnerships with regional influencers who help the brand build trust and visibility in smaller cities.

Out of these the brand has over 81 operational and four work in progress stores in South India and aims to make this number to 110 by 2026. On top of the retail expansion, Acer has also strengthened its channel partnerships across organised and regional retail networks. This includes collaboration with major players like Reliance Digital, Croma, Amazon, Flipkart, and regional organised retailers, enabling the brand to expand its presence in both urban and semi-urban markets. 

Through this multi-pronged strategy of innovative products, regional expansion, community engagement, and targeted marketing, Acer aims to solidify its position as a technology leader.

Going forward, along with these expansion plans, the brand aims to close FY26 at $1 billion in revenue and target the second spot in India’s PC market. According to the International Data Corporation (IDC) Worldwide Quarterly Personal Computing Device Tracker, India’s traditional PC market, which includes desktops, notebooks, and workstations, grew for the seventh straight quarter, expanding by 8.1% year-over-year (YoY) in Q1 2025, with 3.3 million units shipped. Amid this steady industry growth, Acer has emerged as a strong contender, securing the third position in the market with a 15.1% share in the first half of 2025. With its focussed strategy, including aggressive retail expansion, regional marketing campaigns, and innovative product launches, the brand is well-positioned to challenge for the second spot by the end of FY26.