The retail race

Vendors and distributors with an interest in the Middle East retail channel were out in force at this year’s Digital Consumer Channel (DCC). Channel Middle East stopped by their booths to seek their opinion on the big topics shaping the market.

Tags: D-Link Middle EastIomega CorporationKaspersky LabPromate Electronics CompanySanDisk CorporationUnited Arab Emirates
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The retail race Laszlo Szalontai, Regional Sales Director MEA & CEE, Dicota.
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By  Andrew Seymour Published  June 16, 2010

Vendors and distributors with an interest in the Middle East retail channel were out in force at this year’s Digital Consumer Channel (DCC). Channel Middle East stopped by their booths to seek their opinion on the big topics shaping the market.

Retailers are constantly looking for ways to increase margins. What are you doing to assist with this situation?

Laszlo Szalontai, Regional Sales Director MEA & CEE, Dicota

We are working on our pricing structure — revising the pricing — and focusing on new marketing models as well, such as new point-of-sale material and retail-friendly packaging. We know that if we want to have a successful product then it must be combined with an appealing margin for the retailers as well. On the one hand we have to make a lot of marketing activity to establish Dicota as a valued brand for end-users, but at the same time we have to make the retail channels more interested in selling Dicota products. As well as sufficient margin, the size of the portfolio is also important — you need a wide enough portfolio to cover all the segments to be present in retail.

Bradley Bennett, Middle East Channel Manager, SanDisk

We have recently introduced a new pricing structure and new packaging, so we have what we call a net-net model, which allows us to be a lot more competitive at the shop-face, but at the same time react to the market in terms of pricing. And that filters down from us to the retailer to create healthy margins across the board so that everyone is making money and investing in the brand. We changed the pricing strategy to become competitive and to add to the competitiveness of the market. The flash industry is very commoditised, so we felt this new model would give us an edge in the market.

Yasir Al-Kaar, General Manager, Promate Technologies

We have a very straightforward view: a retailer has no loyalty to any brands, but to its own GP. That is the way it should be and we tell our retailers that. The retailer does not own the brand; the only brand it owns is its own — which is its name — and so its loyalty should only be with its profit. I believe we offer the highest GP among most of the vendors here today, plus we have our Profit Mate Loyalty Programme, which generates more money based on the business they do. All-in-all, an average 40% to 50% GP goes to the retailer when doing business with Promate.

Tarek Kuzbari, Managing Director Middle East, Kaspersky

Retail is about margins, but it is also about turnover and how you move your products. The feedback we are receiving from retailers is that we have a very fast-moving product and this is definitely helping them in order to be able to invest by allocating more shelf space and promoting the brand. We are providing special discounts to partners targeting these retailers in order to give them the ability to provide additional rebates and incentives to the retailers. This is in addition to all the marketing and training they need to create both the push and pull of the products.

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