Ericsson South Africa has concluded a distribution agreement with Webb Cellular Accessories, the country`s largest independent cellular distribution agency servicing the retail sector and a subsidiary of JSE-listed Jasco Electronics.
According to Tor Nordli-Mathisen, Director Southern Africa Ericsson Consumer products, the company has recognized the strategic importance of a wide-spread distribution network within the diverse South African retail market and has, as a result, reconsidered its previous policy of exclusivity.
"The South African market prefers the convenience of one-stop shopping for a basket of brands to that of dealing with a brand-exclusive agent." "Ericsson too, is pursuing greater market penetration and is set to launch in excess of thirty new products during 2000. Given the enormous expansion in the cellular market - points of sale for cellular services had grown from 2000 in 1997 to approximately 12 000 this year and was expected to grow to 20 000 by the end of 2000 with demand for handsets reaching 4 million - we believe it is vital strengthen our distribution network to support our strategic thrust."
Webb, which initially specialized in cellular accessories when it was founded six years ago, distributes the full range of mobile phones and accessories available in South Africa and supplies the service providers on both the Vodacom and MTN networks. The company provides service, Original Equipment Manufacturer (OEM) support and warranties and a 24-hour delivery service nationally, said managing director Hilary Dredge.
"Ericsson`s aggressive marketing activities over the past two years have stimulated a major upswing in demand for the products with local consumers. We are delighted to now be in a position to service that demand," Dredge said.
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