Embrace change, DCG members told

First DCG-Disty Symposium focuses on changing reseller mindsets

Tags: Dubai Computer GroupDubai Computer Group (DCG) (www.dcgdubai.com/)Dubai Computer Traders Group
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Embrace change, DCG members told Tantawi wants to see high street resellers restablish their credibility in the Dubai channel. (ITP Images)
By  Manda Banda Published  April 3, 2014

Members of the Dubai Computer Group (DCG) have been told to embrace and adapt to the changes happening in the local IT sector or face the danger of exiting the market.

The call comes in the wake of continued margin erosion on PC hardware sales and the IT downslide as convergence of IT, consumer electronics and telecom products continues unabated.

Speaking at the 'DCG-Disty Symposium 2014' held at Capital Club, DIFC in Dubai, that saw representatives from nine locally-based distributors attend, Hesham Tantawi, DCG Advisory Panel member and VP at distributor Asbis Middle East, said unless high street resellers operating from Computer Street change their approach to doing business, they will find it extremely challenging to stay afloat.

Tantawi said the rapid growth seen in the mobile sector has adversely affected the traditional PC form factor business resulting in a downslide in the business of high street resellers. "This has been compounded by the strong surge of the power retail sector with most IT multinationals preferring to work with retailers and not traditional dealer channels," he noted.

1871 days ago

Change will never happen.

Firstly, big global distributors ( like Ingram, Avnet, Redington) will spoil the market by offering competitive prices to small dealers and their own big whole sale sub-distributors. Next the whole sale sub-distributors will start offering same price to end users as well as sub-dealers. This will threaten the existence of small dealers with unhealthy competition and they will start to live on capital (rather than profits). This has happened in India and this will happen in Middle east starting with UAE.

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