Accessories the answer for Jumbo Distribution?
Distributor debating whether the addition of peripherals to its portfolio makes sense
Jumbo IT Distribution is weighing up the possibility of creating a dedicated business unit focused on IT accessories, which would supplement the volume products it sells to the Middle East retail channel.
The move, if it happens, would see the company push PC peripherals and devices alongside the core HP, Acer and LG hardware products that it distributes.
Jumbo already sells some IT accessories, but these tend to be given away as part of bundles, which is "not a business model", according to the company's general manager, Bikas Biswas.
He believes there could be value in developing a specialised accessories unit now that the distributor does such a large portion of its business with the retail market.
"Since we have become a retail-focused distributor it would give us a huge amount of alignment with all the retailers and possibly help [the company] because it is a high margin, low volume business," he explained.
Jumbo hasn't yet opened talks with any potential accessories vendors, but the type of products it is thinking about include flash drives, keyboards, mice and high value carry cases. It is also interested in talking to its existing vendors about being the primary supplier of the accessories they offer.
Biswas says the idea is currently on the "drawing board" for group management to assess, but he does not expect any decision to be taken before the company's financial year starts in April.