Fujitsu Technology has ended its long-standing arrangement with Annex Distribution in a mutual decision.
The companies have had a distribution agreement since 2004, and the deal will come to an end next month.
Annex MD Stephan Nel explains that the decision to terminate the arrangement was not an easy one, but the company found itself focusing on a more price-sensitive market.
Annex is a channel-focused and established distributor of digital lifestyle technology in the sub-Saharan Africa market. Its brands include Intel, Microsoft, Symantec, LG and Samsung.
Nel adds: “Fujitsu has played a significant role in the establishment and growth of Annex Distribution within the South African channel.”
He says the product range performed well during the six-year relationship, but “we have found ourselves in the position of focusing more on a price-conscious market”.
Different views
Fred Saayman, distribution manager at Fujitsu, says the companies' strategies differed. “We have valued our relationship with Annex; however, on reviewing our diverging strategies, we came to the mutual decision to end the partnership.”
Saayman explains that Annex's model is driven at the entry-level, while Fujitsu has moved towards a value-add model focusing on quality and design. Annex will still continue to resell Fujitsu products, but through the local channel and not as a distributor, he says.
Fujitsu remains committed to the channel market and will, within the next two weeks, announce a new partner that will offer it the value-added model it seeks, says Saayman. The company is in discussions with a prospective partner.
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