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Samsung restructures Middle East distribution model

Electronics vendor Samsung has restructured its distribution model for its printers division in Saudi Arabia and Egypt. The vendor hopes its new model will drive its market share in laser printers to 20% in KSA, 25% in Egypt and 25% in the Gulf region overall by the end of 2007.

Electronics vendor Samsung has restructured its distribution model for its printers division in Saudi Arabia and Egypt. The vendor hopes its new model will drive its market share in laser printers to 20% in KSA, 25% in Egypt and 25% in the Gulf region overall by the end of 2007.

Riyadh based distributor BDL will assume the role as Samsung's in-country distributor in Saudi Arabia, while ETE and BDL Egypt will address the Egyptian market. The vendor claims distribution giant Redington is meanwhile expanding its portfolio of Samsung products and will deliver the full range of Samsung printers to the entire Gulf region.

Samsung’s printers division claims the move is a big step in addressing the needs of the laser printing market in the Middle East. “There is a huge opportunity for geographic expansion in the key markets in the Middle East and this model has been designed to streamline distribution and improve delivery time to customers,” said Seunngu Kang, general manager digital printing division at Samsung.

“Our partners all have very strong presence in the countries in which they operate as well as an excellent track record in providing unparalleled customer service with the brands they carry," he added.

The vendor claims that since setting up operations in the Gulf in 2003, its printing business has captured 20% of laser printer market share in the region.

Lancy Menezes, sales and marketing manager of the digital printing division at Samsung Gulf, claims the new model gives the vendor the ability to forecast and manage inventory levels more accurately and leverage distributors' infrastructure and local expertise. “We are hoping to achieve 25% of the market share in the Gulf region and 20% in Saudi Arabia in specific by the end of 2007. Today's announcement is a big step in this direction,” he concluded.

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