Imation streamlines channel

Information management company Imation has announced that it is streamlining its channel to protect against grey market imports.

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By  Mark Sutton Published  January 8, 2002

Information management company Imation has announced that it is streamlining its channel to protect against grey market imports. The company is seeking greater control of the distribution of its products in the region, and has said that it will cut partners that it does not feel are offering proper investment in the brand.

“We enjoy strong brand recognition in the region, and we are looking to reinforce it by streamlining our channel structure in the region,” said Peter-Paul van Heesewijk, regional manager of Imation. “We find that some resellers have been actively creating a grey market in the region, and we only guarantee our products that are sold through authorised channels.”

One of the first casualties of the restructure is Daisytek, which has been discontinued as a distributor for the brand. Ramzi Itani, sales & marketing manager for Imation, said that it had become aware that Daisytek was selling grey market products, as it was distributing CD-R that was sourced from Singapore, as indicated by specific packaging.

“There were two reasons for discontinuing Daisytek—they were doing a lot of grey, which was causing confusion for our regional customers, and they were unwilling to follow our plans for marketing, they wanted to sell strictly on price,” he said.

The new channel will be announced soon, along with a new range of consumer hardware products, said Itani.

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