The chances are that the conventional vendor-distributor-reseller channel structure, for so long the accepted model associated with personal computer and peripheral product sales in SA, will soon crumble in the same way as the international edifice has done.
This is the view of Rectron CEO, Mark Lu, who says that since SA`s acceptance into the "global village" following the 1994 general election, the market has undergone progressive - and now radical - change.
"Key to this change has been the enfranchisement of local consumers who were suddenly given direct access to new product information. The proliferation of the Internet and the data available on the Web has fuelled this trend and empowered consumers to make their own decisions based on product performance and price," says Lu.
"The result has been that the influence of the reseller - particularly the reseller who added little in terms of value from a technical support perspective - has been dramatically reduced."
Lu says that in tandem with this development has come the strengthening of competition between brands, the brand`s distribution partners and their related resellers, which has contributed to an erosion in price across the board.
"Against this backdrop, there can be little doubt that the channel is in trouble. All players must come to this realisation and take appropriate steps to remedy the situation - or they will surely die."
Lu says the biggest threats to the channel are coming from the vendors who have introduced retail elements to their operations.
"In the UK today, more than 30% of IT sales are concluded over the Internet. The trend is similar in the US, where the role of the reseller - and even that of the distributor - is fast diminishing."
Lu believes it will not be long before this trend is evident in SA.
"South Africans have been slow to embrace the Internet. They are not as keen to purchase online as their European and American counterparts, but this will change spurred on by falling prices, higher specifications and increased competition."
Lu says that locally, the channel must metamorphosis from its traditional vendor-distributor-reseller model into one in which "virtual sales" via the Internet will be central to a linked physical delivery mechanism.
"The only role remaining for the traditional reseller will be in service provision - more likely with a repair and swap-out focus," he stresses. "So I urge resellers to `wake up` to this reality before it`s too late."
From a software perspective, Lu sees more life in the traditional model yet, but stresses that application support along with system integration expertise and networking skills - probably within a small business enterprise (SME) framework - will be necessary to ensure survival.
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