In order to widen the channel for Philips monitors into the local market, the SA subsidiary has appointed local IT commodity specialist, FSA Distribution.
Steve O`Hagan, GM of Philips` PCs; Add ons; and Monitors divisions, describes the move as intended to address complaints leveled at the company during Computer Faire recently. "Perception is that a large segment of the dealer base is not getting access to Philips product," he says.
Although the majority of dissatisfaction stems from smaller dealers, O`Hagan says nevertheless that this could represent as much as 80% of the reseller community. "We clearly needed to find a second channel partner, one focused on this particular market and one with a clear understanding of dealing with low margin products," he adds.
Enter FSA Distribution - a distributor focused exclusively on commodity type IT products. MD, James Darroch, says the decision to accept Philips` proposal required little thought.
"Monitors have been in our portfolio since the early days and we believe we`ve got distribution of such products down to a fine art so to add another brand was simple process.
"The Philips brand fits in well with our strategy and positioning - quality branded products at the right price. And since we`re always on the lookout for items to which fit this profile and complement the existing portfolio, the deal made sense."
From the Philips viewpoint its new distributor has other redeeming qualities. "FSA runs a network of eight branches in southern Africa and an added bonus was that Integral Support Services - FSA`s sister company - agreed to take on our warranty repair work," says O`Hagan.
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