Samsung adopts new distribution strategy

Appointment of new distributors in Egypt and Saudi Arabia seen as key to growth targets.

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By  Administrator Published  June 2, 2007

Electronics vendor Samsung has restructured its distribution model for printers in Saudi Arabia and Egypt.

The vendor is betting on the new set-up to drive its market share in laser printers to 20% in KSA, 25% in Egypt and 25% in the Gulf region overall by the end of 2007. Riyadh based distributor BDL will assume the role as Samsung's in-country distributor in Saudi Arabia, while ETE and BDL Egypt will address Egypt.

Confirmation of the appointments comes alongside news that Redington has expanded its Gulf portfolio of Samsung products to incorporate the full range of printers.

Samsung's printer division claims the move is a big step in addressing the needs of the laser printing market in the Middle East.

"There is a huge opportunity for geographic expansion in the key markets in the Middle East and this model has been designed to streamline distribution and improve delivery time to customers," said Seunngu Kang, boss of the digital printing division at Samsung.

The South Korea-based vendor claims that since setting up operations in the Gulf back in 2003, its printing business has captured 20% of regional laser printer market share.

Lancy Menezes, sales and marketing manager of the digital printing division at Samsung Gulf, claims the new model gives the manufacturer the ability to forecast and manage inventory levels more accurately and leverage distributors' infrastructure and local expertise.

"We are hoping to achieve 25% of the market share in the Gulf region and 20% in Saudi Arabia by the end of 2007. Today's announcement is a big step in this direction," he said.

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