APAC Resellers & Distributors Keen To Expand Their Vendor Portfolio: Survey


Mumbai: Majority of APAC channel partners and distributors are eager to expand their vendor portfolio in order to driver better top line growth for themselves, the recent 2016 Asia-Pacific Consumer Tech Channel Survey has revealed.

The survey, which included responses from distributors and retailers in 10 countries, revealed that 88 percent of respondents expected to increase their vendor portfolio in the next six months. However, 12 percent expected the number of brands they work with to decline in the same period.

The fourth annual DISTREE Asia-Pacific (APAC) consumer tech channel event took place in Singapore from the 2-4th November. In the run-up to this year’s event, DISTREE APAC conducted a survey of distributors and retailers across the region during October. This year’s DISTREE APAC provided participating consumer technology brands with the chance to hold pre-scheduled one-on-one meetings with senior executives and buyers from the region’s top distributors and retailers.

Liam McSherry, Marketing Director at DISTREE Events, said, “The survey highlights the fact that a clear majority of distributors and retailers in APAC are actively looking to increase their vendor portfolio, with a particular focus on working with brands that are active in fast-growing product categories. All channel partners are keen to identify new brands that have a compelling consumer proposition and offer improved margin opportunities.”

Also Read: Top Line Vs. Bottom Line: Is The Channel Perplexed?

“The survey also revealed a degree of optimism in terms of the profitability of the consumer tech channel moving forwards. In total, 71 percent of respondents expected their profit margins to increase in the next six months, with just 21 percent expecting to see a reduction in margins”, McSherry added.

The APAC consumer tech channel survey also highlighted trends by country, giving respondents an opportunity to share their views on their primary national market. The survey also quizzed distributors and retailers on the product categories they believed represented the best growth opportunities for their business. Lifestyle tech was top, with mobile accessories in second place and gaming in third place in the ranking of the top three categories in terms of channel growth potential.

Though the survey did not include India, the findings of the survey are very pertinent to the Indian channel community. In India majority of channel partners are focused on bottom line business, however, many regional resellers and distributors are increasingly foraying into the top-line game.

Adding more products in portfolio is one of the ways to expand the business scale and also engagement with multiple brands is also helpful for partners to enhance profitability and boost business growth.

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