Kolok SA wants to add more products to its dedicated hardware unit, after revenue from the segment doubled in the year since it sharpened its focus on hardware.
A year ago, the group set up a dedicated team to push hardware to its 4 000 customers in addition to its consumables business, says its hardware division head, Esna-May Hattingh. She explains the group previously dabbled in printers.
"The hardware division's success in such a short time can undoubtedly be attributed to the dedication of the experienced team we put together, coupled with the products by leading vendors that readily meet market demand," says MD Allan Thompson.
Hattingh says the company, a unit of Bidvest, is now looking at other products, such as Samsung televisions. Kolok has traditionally distributed printing consumables into the stationery and retail market, and claims to have a 65% market share.
Since setting up a dedicated unit, it has added other products such as Microsoft and anti-virus software, and hardware such as monitors and notebooks to its offerings. Hattingh says adding more hardware has given the company, which had reached a growth plateau, a new revenue stream and made sense because of its existing network.
The hardware division was started with an initial capital investment by Bidvest and has branches across SA and parts of Africa, each supported by experienced personnel and advanced logistics infrastructure.
Hattingh explains Kolok will expand its range with a particular focus on the Southern African Development Community and will benefit from Bidvest's logistics network. She notes the income from hardware is already benefiting the company's R2 billion top line and, although early days, could eventually reach about 40% of total contribution.
"We're not there yet; we're very far from there."
Consumables, which are based on annuity income, will always remain Kolok's biggest revenue contributor and will be aided by hardware sales, says Hattingh.
The company was established in 1966 as Pelikan Products and bought by Bidvest in 1997.
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