Redington spies regional consumer electronics opportunities

Dubai-based IT and telecommunications distributor Redington has revealed plans to enter the consumer electronics channel in the Middle East.

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By  Aaron Greenwood Published  September 4, 2006

Dubai-based IT and telecommunications distributor Redington has revealed plans to enter the consumer electronics channel in the Middle East. Redington currently operates a successful IT distribution network in the Middle East and Africa, representing major vendors including HP. The company recently established a presence servicing the telecommunications market, partnering with LG Mobile in the UAE and East Africa and BenQ Mobile across the entire Middle East and Africa. Redington also secured a contract to act as master distributor for LG’s consumer electronics and home appliance products in southern India last January and it is on the back of this initiative that the company is eyeing expansion in the Middle East region. “At the moment we are looking at a two-year timeframe before we enter the consumer electronics sector, but this depends on how fast it takes us to establish our telecommunications distribution business, which will require a huge investment,” Redington VP Sumant Saran told ECN. “Once this starts to flourish then we will make the move into consumer electronics.” Saran added that Redington would look to partner with A-class brands, similar in scope to those it dealt with in the IT and telecom markets. Meanwhile, the company’s partnership with mobile handset vendor BenQ Mobile has achieved notable market success, the Redington VP insisted. “It has been a challenge launching a new brand,” Saran admitted. “Siemens lost a lot of ground during the take-over by BenQ because the company’s products did not boast a significant market presence. “The local BenQ Mobile team has been very aware of this and, in partnership with them, we have initiated a very aggressive branding campaign, employing close to 25 merchandisers in the UAE alone.” Saran conceded however that some handset models were performing better than others in the market. “One or two phones are performing very well, particularly the P61 music-enabled handset,” he said.

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