Tag Archives: IT distribution

What’s changing retail – Strategic distributor collaboration

By Chris Petersen and Adam Simon

Distributors have been part of the traditional supply chain for decades.   They were often called the “box movers” of the industry because they quite literally performed the essential service of moving mass quantities of products from suppliers to retailers’ warehouses.   While distributors still function in that role, what is rapidly changing retail is the customer demand of fulfilling a single unit to a local point they choose.   The rising expectations of consumers are creating stress points on logistics and profitability for both retailers and brands.   The capabilities for local distribution the last mile are not only a cornerstone of the new retail ecosystem, distributors are emerging as innovation partners creating strategic opportunities for both retailers and brands. Continue reading

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Filed under IT Distribution, omnichannel, Retail, Supply Chain

Attracting and retaining talent in the Channel

Guest blog by Jessica Hadleigh, Marketing Manager at Thames Distribution Ltd

Last Tuesday, I was lucky enough to be invited to be part of a panel at the new format Channel Live conference, discussing a topic that I am very passionate about; attracting and retaining new talent into the tech channel.

Hosted by Adam Simon, the Global Managing Director of CONTEXT, the panel was truly a wealth of experience that included David Jones, Chief People Officer of Daisy Group, Leon Conway, Co-founder of Channel People, David Pitts, Partner and Founder of Trust Business Partners, and myself.

Our industry is constantly evolving and with every new advancement – technological or otherwise – comes the need for a new skillset to keep our businesses current. Continue reading

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Filed under Enterprise IT, IT Distribution, Market Analysis

GTDC EMEA Summit – Positive at the midpoint of the year

At the recent GTDC EMEA Summit, the CONTEXT data and team were in evidence as the preliminary results of its annual 2017 ChannelWatch survey were unveiled in a dedicated workshop, and the GTDC Rising Star awards were selected using the CONTEXT data.

There was a real buzz this year with over 175 attendees, a record number of vendors, and senior executives from across the industry. The location was excellent with top class hospitality in the Kempinski Hotel in Vienna.

The conference opened with an upbeat introductory speech from Tim Curran, the CEO of the GTDC. Europe is on the move, growing faster than the US, and with excellent results in Q1 2017. Curran also took the occasion to remind members of the services provided by the GTDC.

We were then treated to a fascinating glimpse into the future by “futurist and humanist” Gerd Leonhard. Bringing together a myriad of ideas about the current technology explosion, he closed off his speech with a slide which really sums up the challenge ahead. Humans can only advance at a linear pace, whereas technology capabilities are advancing exponentially. We need to deal with this so that we don’t become “useless humans” and we must channel the new technology to the benefit of all mankind.

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From GTDC Keynote Presentation by Gerd Leonhard, 13/6/2017 ©

The final session of the morning, before breaking off into workshops and 1-to-1 meetings, was a Distribution panel, hosted by Peter Ward. On the panel were Graeme Watt, formerly CEO of Avnet Europe, now SVP Value at Tech Data; Jeremy Butt, Executive VP of Westcon EMEA; Ilona Weiss, CEO of ABC Data; Eric Nowak, President of Arrow ECS EMEA; Svens Dinsdorfs, CEO of Elko; and Anton Herbst, Head of Strategy at Tarsus.

The discussions were broad-ranging around the future of Distribution, the impact of recent consolidations, and there was a plea from Graeme Watt for vendors to think solutions not products, in order to get the right results for customers. An interesting debate took place about the importance of recruiting and retaining the best talent in the tech industry, a challenging area. One of the panellists said that often when people have been trained up in a specialist area, they are subsequently targeted for recruitment by resellers or vendors. This is definitely the stuff of future discussions for this audience to grapple with and find solutions.

In the CONTEXT workshop the preliminary results of the ChannelWatch survey for 6 out of 17 countries – UK, France, Germany, Spain, Italy and Poland – were presented. A number of questions were asked by attendees at the GTDC conference who were curious to know more. As Andy Dow, Group Marketing Director of Tech Data UK said, “The more deeply you dive, the more you understand that you need to dive even deeper.”

In this year’s ChannelWatch survey we had an overwhelming response of nearly 7,000 resellers, supported by our distributor partners who shared the survey with their reseller clients. The respondents were mainly owners, CEO’s and senior management, covered a broad spectrum of resellers, VAR’s, etailers and retailers, as well as small, medium and large sized companies.

Overall resellers in these countries are confident about 2016 and optimistic about 2017. This has been confirmed by a stellar opening to 2017 with 5% growth in Q1 panel revenues in these countries compared to last year, ranging from 13% growth in Spain to 1% in the UK. The outlying country for optimism is Spain (71% think that 2017 will be better than 2016) and the country with the highest number of doubters is the UK where 20% see 2017 as being worse than 2016.

The preliminary ChannelWatch data supports the encouraging opening talk by Tim Curran, and we look forward to a positive second half of the year.

The full results of the ChannelWatch survey will be made available in the coming weeks.

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by AS

 

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Filed under Enterprise IT, Home automation, IT Distribution, IT Pricing, Market Analysis, Mobile technology, PCs

At the heart of the CIO’s agenda: Business analytics is the stand-out technology investment in 2017

The recently published “State of IT” 2017 annual survey by Salesforce reveals that IT in industry is experiencing the biggest historical shift of its role to date, from a straightforward cost centre to a service delivering value and innovation, the “central nervous system” of modern business, “partnering with departments to orchestrate experiences with connected data sources and new capabilities”.

With this has come a significant change in the role of the Chief information officer (CIO). No longer just there to keep the lights on, the CIO is increasingly at the heart of the enterprise providing more customer-focused business analytics. Vala Afshar, Salesforce Chief Digital Evangelist, writes that “to be successful, modern CIOs must abandon their tendencies toward control and adopt an outlook that is more collaborative and customer-centric than ever.” There is evidence already that this attitude is becoming commonplace, with 61% of IT leaders saying that providing a single view of the customer is a high priority over the next 12–18 months.

Despite this shift, there remains an uncomfortable mismatch between business strategy and expectations, as CIO priorities are evolving rapidly but traditional views of the CIO as chiefly an operational role are yet to be shrugged off. The Salesforce survey found that 77% of IT leaders now view IT as an extension/partner of business units rather than a separate function. Yet a CIO survey by Deloitte’s found that while 78% of the CIOs polled said that strategic alignment on IT was essential to their success, only 36% ranked their organisation as “excellent” or “leading” in this capability.

A look at IT distribution
Like the business CIO, technology distributors worldwide are intent on making analytics a key area of investment. GTDC’s recently published report, “Insights into 2017 – Channel Executives and distribution leaders share their partner perspectives”, considered analytics as a key focus for distributors. Far from being a new area, analytics in 2017 promises distributors further innovation, incremental revenue and profit potential through the development of complex business intelligence (BI) solutions. As one Distribution executive put it:

“We’re using Analytics to identify opportunities for our business partners. For example, bringing new products to partners. We continually do an analysis of customers for the last two years. We have to move faster in investing in some next-generation areas and help our partners learn how to monetize these new opportunities. That’s really key for us.” — Miriam Murphy, Senior Vice President, North Region EMEA, Avnet TS.

Key questions for CONTEXT’s upcoming Channel Research Group
CONTEXT will be exploring the role of BI and analytics in the inaugural meeting of its Channel Research Group on May 30th in London, UK, asking the following questions to its Distribution, Reseller and Vendor partners:

  • What kind of opportunity is BI/Analytics to your business?
  • Has your company benefited from BI/Analytics information provided by a 3rd party?
  • How are you currently investing in BI? Is this for your own business or to help your partners develop BI solutions in their business?

For more information on CONTEXT’s Channel Research Group, please contact us!

by CS

 

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Filed under Enterprise IT, IT Distribution, Market Analysis

Don’t dismiss the Printer

I wondered why IT sales are doing so well, despite these extraordinary, uncertain times with Brexit, growing isolationism across the rest of Europe and insults thrown between Trump and Korea. According to the latest figures from the CONTEXT Distribution panel, revenues are up in the Eurozone by 6.7% compared to last year, with the UK steaming ahead with revenue growth of nearly 13%.

My colleagues are often blogging about the exciting new or “interesting” products that start to appear in our sales data – wearable devices, 3D printers, games consoles, mobile phones. Printers, on the other hand, can sometimes be overlooked but this is a market not to be ignored. In fact, in Germany, which represents around 20% of all revenues we pick up from the Distribution channel for IT products, Printing Consumables is ranked 2nd, behind only mobile computing. A similar picture emerges for France and the UK.

So, what is impacting the print market at the moment? We notice, particularly in the UK, workplaces transforming as millennials are looking beyond the traditional office. Working from home is increasing motivation and productivity and new technology is changing the way we work. Vendors are faced with new opportunities, and are rising to the challenge of how to best support the customers’ needs, be it savings on print costs, digitization, unified platforms – essentially, solutions for wherever your ‘office’ is at this precise moment.

Each quarter, the shift is moving from single to multi-function printers. We demand more from a printer than just printing. Unit sales of Inkjet and Laser multi-function printers grew around 6% in Q1 this year and now account for around 70% of all printers sold in Western Europe.

Inkjets are marking their return in the B2B sector with consistent double digit revenue growth of both the consumer and the business inkjets since Q2 2016. With more emphasis on lower print costs for businesses, vendors, particularly Epson and HP, are moving further into the higher price bands with revenues for business inkjets over Euro 400 growing by 37% year-on-year in Q1 2017. Business inkjets now account for almost 40% of all printer revenue in the SMB channel.

Finally, we’re also seeing a return in consumer confidence in some of the countries that have been struggling in the last couple of years. Spain has demonstrated an overall growth year-on-year of 16% in the print market, with a 12% growth in IT sales overall.

So, World disorder? I guess so, but business goes on and the printer market is still alive and well.

by DC

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Filed under Imaging, Market Analysis

B2B – a risk for the channel or a missed opportunity for tech retailers?

The recent news about Amazon launching its B2B activity in Europe, starting in Germany, has generated a lot of press coverage. In the US it is reported that in the last two years the number of business customers shopping at Amazon has increased from 200,000 to 400,000, so resellers in Europe are concerned. “Amazon’s B2B challenge is a danger for the Channel,” was the headline on CRN UK’s front page.

So is this news a risk to the channel or in fact a missed opportunity for retailers?

Three years ago CONTEXT ran a conference which highlighted the opportunity of what we named “R2B” short for “Retail-to-Business”. Many retailers from across Europe attended this conference, but very few had the real commitment to make it happen. So will the news of Amazon’s arrival in this space make them wonder if they missed an opportunity? Surely if Amazon, with no stores, no experience of providing human-to-human customer service, and no expertise in business IT, can go for this sector, then the tech retailers can do so also.

Successful retailers in B2B are those who have invested in a service capability. Best Buy and the Geek Squad, DixonsCarphone and Knowhow, the Darty van with “le contrat de confiance” emblazoned on it – these are the retailers that have invested in service. Sebastian James, CEO of DixonsCarphone, said at Retail Week Live in March 2015 “if we don’t invest in the whole chain we risk to become irrelevant”. Some etailers have also managed to create a space in this area – an example is LDLC in France which has set up a nationwide network of resellers who help their business customers to install and maintain their IT equipment.

If a retailer is keen to take on Amazon in the B2B area here are the 5 key steps to follow:

  1. Identification and targeting of business customers through the use of CRM and intelligent sales activity – for example, every time a customer asks for a VAT invoice, this is a sure sign that they are a business; or when they purchase more than 2 of any machine, this should be a sign. Human interaction with the customer is important, as well as the posing of key questions online. On Staples website, the very first action is to identify yourself as a business or as a normal customer
  2. Curation of business SKU’s – with the support of vendors, retail is a way of targeting incremental sales from small businesses of less than 25 seats. But it is necessary to have the right products, which are not always made available to retailers. You can buy a Lenovo Thinkpad for a B2B customer on PCWorldbusinessonline, at Amazon.co.uk, at LDLC but not at Fnac, Darty, El Corte Ingles or even Media Saturn.
  3. Category management to drive out the optimal product mix – the business SKU is part of an ecosystem – understanding the upselling opportunities to meet the full needs of the business customer is a key element of success. R2B market data is a vital support for retailers by showing top selling products and typical market baskets.
  4. Service at every stage – the business customer needs service in store, online, at the point of installation and support in maintaining equipment in a functioning state. This is the most demanding element of the proposition in terms of investment. Recently, I asked the CEO of a retailer in the Middle East if he was concerned about Amazon’s purchase of Souk.com, and he said “No! We will differentiate ourselves through our service offering.”
  5. Financing of small businesses – this is a key activity which helps SMB to survive and grow. Healthy credit terms and even loans help small and medium businesses to expand without fear of cashflow shortage.

It is not too late for retailers to enter into this space, and capture a market which is at risk from the ever-innovative and expanding Leviathan which is Amazon.

by AS

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Filed under IT Distribution, Retail, Retail in CONTEXT

Reflections on DISTREE EMEA 2017

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.

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Adam Simon, Global MD – Retail, CONTEXT

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.

by AS

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Filed under Connectivity, Home automation, omnichannel, Retail, Retail in CONTEXT, Smart Home, Smart Technology