Aptec looks for sales spike at this year’s Gitex Saudi Arabia

Regional distribution giant Aptec will work closely with its vendor partners and resellers to make stock available for the spike in sales expected to occur at this year’s Gitex Saudi.

  • E-Mail
By  the Gitex Times Staff Published  April 13, 2005

Regional distribution giant Aptec will work closely with its vendor partners and resellers to make stock available for the spike in sales expected to occur at this year’s Gitex Saudi. With stocking points in Riyadh and Jeddah, and over 80 staff on the ground in the Kingdom, Aptec’s local touch and in-depth insight into the country’s channel dynamics is positioning the company well for sustained growth. “We are serving around 400 resellers regularly and expect that number to double in the year ahead. In the past it used to be 10% of the resellers doing 90% of the business because it was basically sub-distributors. Now we are serving more and more smaller resellers across the Kingdom as they become more comfortable buying from authorised distributors,” says Hesham El Abd, Aptec’s director for business development. Resellers are upbeat about the prospect of increased sales during Gitex Saudi and Aptec is working hard to deliver the perfect mix of promotions and pricing to appeal to the channel and customers alike. “There is good business opportunities during the show,” says El Abd. “Even the resellers not appearing directly at the show are working with us to take extra quantity during the event. We are working closely with the vendors to develop marketing campaigns that stimulate sales and also ensure that we have the stock available.” With some vendors now employing staff on the ground in Saudi Arabia and opening offices, structured partner programmes are encouraging resellers to purchase from authorised distributors. “Some of the vendors are here and have introduced rebate programmes. When this is communicated to the resellers they realise that the opportunity is there to make money buying from the authorised distribution channel in the Middle East,” explains El Abd. While some vendors have already invested in building up Saudi operations, others prefer to take a watching brief instead. According to El Abd, these vendors are missing out on a golden growth opportunity. “The biggest issue is still the overall lack of vendor investment in Saudi Arabia compared to other Gulf markets. This keeps the market unorganised and some of the activities that take place are uncontrollable. It is a pity to see this when you consider the size of the market,” he says. “If vendors invest they have greater control of the channel, can monitor profitability and sales become more consistent. If product is being moved in unofficially from Jebel Ali it can end up killing the vendor’s in-country channel,” El Abd adds. “Resellers may not know how to sell, support and service a product, but they buy it as grey because they see a margin opportunity. The consumers lose out if they are misled about the quality of the product or service promises are not kept. This can also hurt the vendor’s reputation. Customers want to feel safe when investing in a particular brand,” concludes El Abd. The case for increased vendor investment in the Kingdom is a compelling one and Aptec hopes that this trend will encourage the development of the Saudi Arabian reseller market even further during the course of 2005.

Add a Comment

Your display name This field is mandatory

Your e-mail address This field is mandatory (Your e-mail address won't be published)

Security code