Guarded buoyancy

The 2013 Channel Confidence Survey paints a picture of cautious optimism.

  • E-Mail
Guarded buoyancy ((ITP Images))
By  Manda Banda Published  November 17, 2013

The 2013 Channel Confidence Survey paints a picture of cautious optimism.

This month Channel Middle East reveals its Channel Confidence Survey results, our annual study about the health of the Middle East IT market. The 2013 Channel Confidence Survey polled all channel stakeholders in the regional market to determine the state of business in the Middle East.

The research provides an insight into how channel players see the market right now, and how they are preparing for what’s to come.

Although the results painted a picture of guarded optimism, the overall business climate in the regional channel has continued to improve. However, there is still some elements of uncertainty especially in the PC segment, where sales of desktops and notebooks have continued on a downward spiral. That, coupled with the slow adoption of Windows 8, has contributed to sluggish PC sales globally.

Not all is gloom, as the poll results showed that 37% of respondents indicated that they have reported double-digit growth. This goes to show that the regional channel did experience some solid trading levels in the first half of 2013.

At the same time, 49% of respondents said they were very confident that trading levels in the fourth quarter of this year will be strong than the same period in 2012.

Whether the regional IT market is improving or not, the age-old channel bugbear of margin continues to weigh heavily on the markets mind. Indeed talk of margins declining in the channel has lingered long enough and it seems this will not change any time soon. Given the amount of commercial product offerings being sold in retail channels, margins will continue to get thinner as competition stiffens.

From those polled, 35% said pressure on margins was the issue that posed the greatest threat to the health of their business.

As much as expecting trading levels to pick in Q4, 2013, it seems the regional channel is not only also expecting profit growth in the last quarter of the year, but paying attention to the bottom line. From those polled, 94.13% said they were budgeting year-on-year profit growth during the quarter with 15.69% expecting an increase of more than 30%.

The overall business climate may be improving but as channel stakeholders look to new markets, those that will be successful are businesses that exercise financial prudence, focus on the bottom line rather than top line sales and are carefully selecting which solutions to take on board and vertical markets to target.

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