Channel News and Analysis - Channel Insider
Empowering the next generation Channel
 

Bull’s Eye Awards
Nominations Open for Channel Insider 2009 Bull’s Eye Awards
Nominations are now open for the Channel Insider 2009 Bull’s Eye Awards, which recognize excellence in customer service, technology prowess, business acumen, channel leadership, communications and community building, and innovation among vendors, solution providers, distributors and channel services companies.



Sponsored Links
  • Control VM Sprawl, What You Don’t Know Can Hurt You
  • FREE Sophos Encryption Tool: Encrypt, compress and share files easily
  • LSI 6Gb/s Portfolio Expands to Include SATA+SAS HBAs
  • Reduce the cost of managing your mobile workers.
  • Find out 7 Ways to Drive Data Center Efficiency
  • SonicWALL breaks through network and email gridlock
  • Save up to 40% on calling costs with Avaya Aura™



  •  

    Fewer PC Sales Go Direct as Customers Move to VARs, Retail and DMRs

    in Channel News and Analysis


    Article Rating:starstarstarstarstar / 0
    Article Views: 2871

    Rate This Article:
    Add This Article To:
    More PC customers prefer to buy their computers through retail, VARs and direct market resellers (DMRs), and that trend will continue, says market research firm Gartner. Gartner forecasts that 80 percent of PC shipments will go through an indirect channel by 2012. PC makers such as Acer, Dell, HP, IBM and Lenovo will need to keep a close eye on their go-to-market strategies.

    PC customer buying preferences are pushing the market to one that favors indirect sales over sales direct from the manufacturer, according to a new report from Gartner.

    The indirect channel—including VARs, retail and telecom providers—counted for 66.6 percent of worldwide PC shipments in 2004 and accounts for 74.3 percent of shipments in 2008. Gartner is forecasting that percentage to reach 80 percent by 2010.

    The shift will mean that PC manufacturers must keep a closer watch on their go-to-market strategies and fine-tune their multichannel approaches to yield the best results, particularly now when market analysts are forecasting historic declines in PC sales.

    “The direct sales channel is still showing customer preference in certain segments such as enterprise, government and education and some professional segments in mature markets,” says Tiffani Bova, research vice president at Gartner. “However, strong consumer and small office/home office [SOHO] market growth will lead to consistent growth for the retail channel, and we can expect to see growth from a variety of nontraditional PC retailers such as Wal-Mart and Price Club in the U.S. and Carrefour and Courts in Asia/Pacific.”

    Bova believes that telecom retailers will also step up to a more active role as mininotebooks, also known as netbooks, are bundled with remote access in several geographies.
    Resource Library:

    Expansion of home and SMB (small and midsize business) customers in both mature and emerging markets will help spur the growth of indirect sales because these customers prefer purchasing via retail and VARs, according to Gartner.

    In the home and SOHO segment, most customers prefer retailers, says Gartner, which allow them to shop for multiple brands, features, functionality and price all in one place. But these customers will go to direct sales as their No. 2 choice.

    SMBs prefer a combination of the direct and indirect sales channel for purchasing PCs, according to Gartner. The firm notes that the smaller the business, the more likely it is to prefer purchasing through the indirect channel, including VARs and DMRs (direct market resellers) due to price, availability and post-sales support.

    Gartner notes that the fastest-growing indirect sales channel is DMRs. However, those companies will still only make up less than 5 percent of the total market by 2010.

    “During the last two years, the channel has been particularly volatile with a declining average selling price [ASP], increased channels to market, consolidation, and the introduction of new brands and technologies to the market,” Bova says. “Building a robust and comprehensive [go-to-market] strategy is critical to the overall success of a PC manufacturer. Building a one-size-fits-all product or channel strategy will not deliver the flexibility or responsiveness customers are looking for in today’s market.”

    That means meeting the customer where he or she wants to buy, says Bova, with the products the customer wants.

    “With predictions of an unprecedented PC market slowdown in 2009, how PC manufacturers keep demand and brand loyalty high will come down to the attention spent on [go-to-market] and account coverage initiatives,” Bova says. “Shoring up partnerships with channel companies [retail, VAR and telecom service providers] and distributors has the ability to provide tremendous competitive advantage. This building of multichannel sales avenues opens up touch points and customer contacts with reduced costs versus selling and supporting customers directly.”






    Discuss Fewer PC Sales Go Direct as Customers Move to VARs, Retail and DMRs
     
    >>> Be the FIRST to comment on this article!
     

     
     
    >>> More Channel News and Analysis Articles          >>> More By Jessica Davis
     



     


    [ci] feeds
    XML
    Add Channel News, Product Reviews, Trends and Analysis to your RSS newsreader or My Yahoo!


    HTML PLAIN TEXT

    Keep on top of news for VARs and Resellers with CI's Weekly Newsletter and Alerts.

     


    CHANNEL RESOURCE CENTER
     
     
    Enterprise Mobility Zone
    The Enterprise Mobility Zone (EMZ) blog is a tool designed to help senior IT executives discuss, create and deploy next-generation mobile strategies in their organizations.
    Go beyond yesterday's tactical approach to mobility!
     
    Build A More Efficient Data Center
    Demands are growing but budgets are not. Solve your pressing IT issues using the resources you already have. Determine which technologies can help you drive efficiencies and how they are applied. Gain a quick ROI on new initiatives
    Find out how
    Let Enterprise TechBrief do the work for you. Aggregated content, tech news, product reviews, vendor updates, how-to’s—all you need to boost your efficiencies and cut costs, all from one place.
    enterprisetechbrief.com