Itec/Konica, the sole distributor of Konica copier printers, Oki faxes &
Itec
PC`s in South Africa and the country`s first office automation company to expand into network service and solution provision, has launched a franchise distribution venture as part of its strategy to increase its current 9 % share of the copier/printer market to 15 % over the next three year.
"We intend to establish a network of approximately one hundred franchise operations around the country that will be wholly-owned by individual entrepreneurs franchised to distribute and support the entire Itec/Konica product range, including the Konica copier & printer, Oki fax & Itec PC brands, as well as to offer network service and support on all installations," says Jacques Duyver, chief executive officer of Itec/Konica.
Itec/Konica will offer comprehensive marketing and training support and will monitor the service standards set by the international parent companies on each of the brands. According to Duyver, Itec/Konica is currently in the process of selling out its shareholding in incumbent dealers and expects to complete the roll out the new franchise network by the end of 2001.
"The franchise model will allow us to attack the market aggressively by tapping into the inherent drive of owner managers and allow us to continue the success of the past three years which has seen Itec/Konica grow its share of the copier market from a minimal 1% to 9% thus outstripping the market as a whole where competitors have either lost of maintained market share," he said.
"Itec/Konica has developed a winning formula based on superior products from the Konica copier/printer range as well as its other ranges such as the Oki facsimiles & Itec PC`s , a total
commitment to post-sale servicing and highly competitive pricing," he said. "A franchise distribution network will add further impetus to our vision."
According to Duyver, the anticipated swing to networked digital copiers and multifunctional machines in the office environment, prompted the company to change its positioning from solely supplying product to introducing network solutions and support a year ago.
"This followed international trends where for example In the United States, digital copiers that combine functions such as copying, faxing, printing and scanning and are integrated into the computer network or LAN/WAN in office environments, now constitute 65 percent of the market. In South Africa, this figure has grown from between less than 5 % to around 65 % over the past 3 years. This growth is reflected in our own figures where 85% of new sales are for digital copiers," Duyver said.
Traditionally, the culture of the office automation market has been that of operating standalone photocopiers, faxes and printers. This culture has undergone rapid change as digital copiers that incorporate these features are linked to networks. This centralisation of all office machines has led Itec/Konica to diversify into both an expanded product base beyond its current range of Konica copiers and printers as well as into setting up a service and support structure for all these products as well as the networks that will contain them.
Itec/Konica`s expanded range now includes locally assembled personal computers under the Itec brand name, Oki printers and fax machines. "Our diversification is being driven by the huge demand in the market for a single source of network support as well as for solutions, rather than products, across all the automation functions that drive operations in an office environment. Ideally, all the machines on an office network should be maintained by a single support service with a skills base across all products instead of, as is currently, the case, various operators servicing stand-alone machines that could be connected together."
"This comprehensive network support and the capacity to provide holistic office automation solutions is becoming a major growth trend and Itec/Konica , with the support of a strong franchise network, is well positioned to expand into this area," Duyver said.
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