Rectron appointed HP printing, imaging distributor

In a move that has reinforced its position as the leading computer components distributor in SA, Rectron has become an official Hewlett-Packard imaging and printing products distributor. It will service the small to medium-size enterprise dealer channel from its nationwide warehouse and distribution network.

Rectron, one of SA`s fastest growing distribution organisations, has become HP`s third main distributor with a focus on servicing the rapidly growing printer and imaging markets.

"We see Rectron as an important partner who will enable us to access the growing segment of the `mom and pop shop` type of market that buys a range of components and - by-the-way - a printer a month," says Zii Sithole, director, Imaging and Printing Products, HP South Africa.

"This segment has unique credit term requirements and Rectron is aptly suited to service them with their infrastructure which challenges some of the established retail banks.

"Because of this, we see Rectron broadening our market reach rather than splitting the existing pizza further among our other strategic distributors," says Sithole.

"The company has been a successful large reseller for some time and has built up a substantial market servicing the needs of the smaller dealer in the entry-level SME sector. We see strong growth in this sector and believe Rectron will be key in focusing on this sector and ensuring we build our market share substantially," he adds.

In addition, Rectron will fill the distribution gap left by former major distributor, Siltek Distribution Dynamics (SDD), which ceased trading at the end of last year.

Rectron CEO Mark Lu says the deal will have significant strategic implications because it recognises Rectron`s position as a principal player in the market.

Rectron will distribute the consumer and business HP DeskJet printer range, its all-in-one / office jets (multi-functional printing devices), entry level and mid-range laser printers, scanners, digital cameras and the Compaq range of projectors.

"We operate from a position of financial stability and strength and, over the past few years, have been successful as a sub-distributor handling HP products. In that time we have built up a network of some 7 000 dealers countrywide.

"Our strength as a distributor lies in this network and its focus on the SME market - a market that, because of the global IT downturn, has become very important today and one which most growth in the future will come from. We have the logistics infrastructure in place to meet high volumes of small unit orders that make up our primary market in this sector," says Lu.

Rectron and HP organised a nationwide roadshow to formally announce the new distribution partnership and highlight upcoming new printing and imaging technology.

The roadshow featured some of the 35 new HP printer and imaging products that are going to be rolled out by September. HP`s new product roadmap for Compaq and HP printing and imaging products was also discussed.

Lu believes the HP deal will open many doors for his company. "Our Server and Networking, and Mobile and Handheld divisions are major growth areas, along with our PC and Components, and Peripherals divisions - particularly in the SME domain," he says.