Following an inconspicuous entry into the South African market, Ingram Micro SA is tight-lipped on what it aims to achieve in the country.
In one of its first interviews since opening its doors, Ingram Micro SA was reluctant to divulge any of its domestic growth targets, or name its major channel partners.
A joint venture between Ingram Micro International and MB Technologies, the new company officially opened in June and distributes IT components, peripherals and accessories.
Following two quiet months, Peter Ibbotson, CEO of Ingram Micro SA, told ITWeb what the company aims to achieve domestically.
He did not reveal exact target details, saying only that the company hopes to be well enough established in SA within 18 months to be able to expand into Africa.
Of the distributor's low-key entry into SA, Ibbotson says: "I wanted to get in, get things going, open for business, and do the groundwork." He notes it is not his style to make a lot of "noise" about what the company is doing.
Ibbotson also did not want to be drawn on the company's perception of the growth potential in the South African market. However, he points out that SA and Africa are growing economies, which makes them worth investing in.
"The penetration of ICT is still quite low compared to a world basis, so we believe there is growth in these economies."
He says the new legal entity had to sign new agreements with vendors and channel partners - a process he says is nearly complete. Ibbotson says there will not be many changes in the company's channel structure, with most previous vendors staying on and "a few" new ones joining.
"The existing customer base that we had with Storgate was quite extensive, so we did not see a clambering of new people."
The company has about 50 staff members, with about 10 in sales, and Ibbotson says he has filled most of the posts.
Who is buying what?
Ibbotson says the company wants to offer a full range of products to its channel partners. In terms of priorities, systems integrators will receive a lot of attention, followed by dealers looking for upgrades, and then components for end-users.
"There is some opportunity in retail in terms of some of the vendor products," says Ibbotson. "It's not huge, but it is part of what we are able to sell." One example of this is external storage, which "might find its way into retail".
Ibbotson adds Ingram Micro SA's approach is to be in touch with the channel "as often as we can, without becoming a nuisance". The company meets with "larger partners" on a monthly basis, but Ibbotson did not want to name these partners.
As for its expansion plans, Ingram Micro intends to start with bordering countries like Botswana and Mozambique, before rolling out "further north". Ibbotson says it is important for Ingram Micro International to be represented in the rest of Africa - "it is the only continent we're not in at the moment".
Asked whether he thought Ingram Micro could be a threat to existing distributors in SA, Ibbotson says: "We aim to position ourselves to be competitive and to be a significant player in the market."
Listed on the New York Stock Exchange, Ingram Micro International is the largest technology distributor in the world. It generated $31.4 billion in revenue in 2006 and ranks 70th on the Fortune 500 list.
Related stories:
MB Tech targets R1bn with new venture
Ingram Micro, MB Tech join forces
Share
