Dell, long-known for its direct to market strategy, is looking to gain between 4% and 5% total market share domestically in the next year by utilising the channel.
Dell SA MD Stewart van Graan says the computing giant is approaching the local market aggressively and believes SA and southern Africa to be attractive markets.
"We are in the market to stay," says Van Graan. "Through the channel, we want to extend our reach and enable greater customer choice."
Today, Van Graan officially announced Drive Control Corporation (DCC) will be the company's first master distributor, with a second and final channel partner to be appointed at a yet-to-be-revealed point in the future.
"So far, we have only addressed 20% of the market," said Van Graan, referring to the corporate arena, and to some extent small and medium enterprises (SME). Consumer and SME markets are therefore to receive the most attention from DCC.
DCC MD Niel Rex says signing Dell was one of the most significant milestones in the company's 20-year history. He expects the deal to drive the company's growth by between 25% and 30% in the next nine to 12 months.
"We definitely expect this partnership to have a large impact on the channel," says Rex.
According to Van Graan, the move towards a channel model was not necessitated by stagnation in the company's growth. He says even in the corporate market, there are still many opportunities to pursue, but the consumer and SME markets have become increasingly attractive.
This is despite the tough market conditions prevalent in SA, with inflation and interest rates constantly climbing and consumers experiencing a general credit crunch.
"The growth rate in the consumer market globally is still attractive, despite challenges in specific geographies. There will always still be people with disposable income."
Van Graan maintains that direct selling will still continue and he does not believe the channel focus will cannibalise this market. "Direct is still very relevant, especially for our larger customers."
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