When the IT channel gathers in Monaco for DISTREE in February it is always good to get some winter sunshine, not just from the balmy Cote d’Azur weather, but also the opportunity to meet up with panellists, clients and new tech companies.
This year there was a strong distributor focus, and the keynote, delivered by Chris Petersen , our strategic partner, was a look at what distributors need to do to benefit from the omnichannel revolution. Chris challenged the audience provocatively with a tombstone showing that on 14th February 2017, traditional retail died. What is the significance of this date? It was on this day that Warren Buffett, the legendary investor, sold almost all of his WalMart stocks. The WalMart stock has been languishing for years now, as the company is incapable of catching up with Amazon on ecommerce. Their total of $13bn online sales is equivalent to the growth which Amazon puts on every year.
Chris elaborated on 5 areas where distributors can contribute. Here are two key ones:
- The last mile represents 40% of costs – how can distributors help with logistics support such as drop shipment, and inventory management.
- The long tail is the chosen strategy of ecommerce and particularly online marketplaces, which are big competition for distributors. What can distributors do to help retailers increase the breadth and depth of categories which they hold.
In addition, CONTEXT had a workshop slot, and presented a deep dive on three emerging technology areas – Smart Home, VR and PC Gaming. There is a thirst for understanding all these areas, as evidenced by the full house of those attending the talk. Of all of them, the theme which cropped up throughout the three days was PC Gaming. In the CONTEXT presentation there was a very visual presentation of the need for deep analysis in this area, with a slide showing two Asus models. One was a Republic of Gaming model, evidently a gaming machine.
The other was a “business” laptop, but when you dig into the specifications you can see that it is also gaming capable. The channel needs to understand the total market if it is to develop the gaming category, and that is where the CONTEXT categorisation is very useful.
Finally, we were asked to take part in a panel on Brexit. All 4 UK participants had been pro-Remain and are all now pragmatic if concerned about the future. We are delighted to see additional investments recently announced by tech companies in the UK, and look for an interesting competition between the hardware strong France and the software strong UK.