Empa signs Philips for monitors

Distribution powerhouse Empa has added another vendor to its rapidly expanding portfolio, and will now distribute Philips CRT and LCD monitors in Saudi Arabia.

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By  Andy Tillett Published  October 4, 2005

Distribution powerhouse Empa has added another vendor to its rapidly expanding portfolio, and will now distribute Philips CRT and LCD monitors in Saudi Arabia. The present deal will only include Saudi Arabia, but Philips says there is room to extend these rights in the future, depending on performance. Empa is now the only distributor of Philips monitors in Saudi Arabia. “We were looking at distributors where our principals are not as strong. Saudi Arabia is the biggest market in the GCC and we saw that Empa has a very good setup in the country. We want to double our current business in Saudi Arabia, if this leads to more later on then we will see,” said Khalid A Tuer, regional general manger at Philips Middle East and Africa. Philips has an in-country distribution model and splits the markets of the Middle East into three areas – distribution, retail and corporate. Empa will address only the distribution business to begin with, moving volumes of product. Empa has two offices and a dedicated team of staff working in Saudi Arabia. “Traditionally we are very strong in the standard distribution channel. Once we have a significant market share we will look at expanding into the other areas,” said Savas Yucedag, vice president at Empa Middle East. “The investment requirements are different for the separate areas of distribution. We have to look at who is geared to do what type of distribution best, and if Empa has the strengths to address the other areas of the market, definitely we will move forwards,” said Jehad Abu Shakrah, sales manager multimedia devices at Philips Middle East. Philips monitors join Toshiba HDD drives and Infineon memory modules as additions to Empa’s portfolio in 2005. The distributor describes monitors as one of the few ‘missing categories’ in the product lines it carries. Yucedag also hinted that there may be another vendor addition in the pipeline before the end of the year. “Distribution is changing from the traditional core components business towards finished goods. The end user is demanding more finished products and more branded products rather than locally assembled systems. This is the direction that Empa is heading, we want to offer more finished goods for end users,” concluded Yucedag. The focus from Philips will be on its LCD monitors, though it claims its sales remain split to around half between CRT and LCD monitors at present.

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