TRADE NEWS Evolving
TRADE NEWS Evolving Distribution Models in CE Ingram Micro: A One Stop Shop to the CE market, namely a lean management structure: “The profit margins in IT are even lower than those in CE so as an IT distributor we were always obliged to run a very tight ship,” After more than thirty years as a major distributor of IT products, Ingram Micro moved into CE several years back, around the time that digital TVs came on the market. The company offers a range of navigation devices, PC add-ons, screens, TVs and other peripherals. “It was easy for us to move in to the market because we already had a network and credibility with the major brands like Samsung and LG,” Alexandra Perry, Product Management and Corporate Communications Supervisor, said. “Now we distribute all the major brands in software, hardware and telecommunications. We’re a one stop shop for 30,000 retailers.” The company is attending IFA for the third time and the booth has been a popular meeting point for Ingram Micro’s clients. “Our main reason for being here is of course that we’re now in the CE segment and it’s important to reinforce our presence as a true one-stop shop, because that is one of our main values to the CE market,” Perry said. “If one of our clients wants a particular Home Entertainment solution we can supply the whole thing right down to the cables. We also produce Ingram Micro Guides and the Ingram Micro Summer Academy, both online, through which we train our clients about different specifications and the best way to sell products.” There is a another piece of added value that Ingram brings Frank Gerich, Regional European Director Europe, said. “And we believe that there is a lot of potential in making cost structures leaner in CE and that using us as a distribution partner can be of help. Ironically the fact that the German economy has really picked up recently has meant that we are not able to leverage the advantages of lean, efficient management as much as we would have liked. There is something of a consumer boom at the moment that has taken the pressure off the established players.” Ingram has also recently expanded the product range of its V7 brand with two new navigational devices, the V7 Nav730 and the V7 Nav740 alonside several new LC- Displays from 19-24” and a range of LCD-TVs in glossy black starting from 22” up to 42”. Garmin Once Again On The Acquisition Trail Hall 26c Stand 102 & 103 Hall 2.1 Stand R.210 & R.211 Garmin Ltd. has completed the acquisition of GPS Gesellschaft für Professionelle Satellitennavigation mbH, the exclusive distributor of Garmin’s consumer products in Germany. The company will be renamed Garmin Deutschland GmbH and will retain its management, sales, marketing and support staff, consisting of approximately 60 people, and will continue operations at its current headquarters and warehouse facilities located close to Munich. “The acquisition of Garmin Deutschland GmbH will further solidify our sales and distribution efforts in a very important European market,” said Dr. Min Kao, chairman and CEO of Garmin Ltd. “We believe that there is significant potential for further growth in Germany, and Garmin Deutschland GmbH will enhance our ability to support our key retailers and OEMs in that market.” Dr. Axel Därr, Managing Director of Garmin Deutschland GmbH, added: “As a new member of the Garmin family we are now able to operate with increased efficiency as an integrated part of the whole team. We are looking forward to the continued development of Garmin’s market position in Germany.” In January 2007, Garmin Ltd. acquired its French distributor in a similar effort to enhance its European sales and marketing presence. Hall 8.1 Stand 113 26 IFA International • Tuesday, 4 th September 2007
TRADE NEWS Product Centric Communication Trade representation is rapidly growing as IFA skips along in the successful steps of the CE market. We asked Oliver Haubrich, Chairman – ElectronicPartner, to tell us about his organisations activities... EP is family-owned. It was founded seventy years ago and has been growing ever since to become a truly international company. You base your success on the strength of the independent retailer in the shop... How important is your presence at IFA for the people who are part of your organization? As always, the focus of our presence at IFA is the end consumer. We give people the opportunity to know where they can buy the products, with good service, good consulting, innovation, design and lifestyle. Can you tell us more about what people can see at your booth? What we are showing to the customers are the best products, the best choices. We have pre-selected high-quality products which appeal to the customers. We definitely try to focus on products. Our role is to communicate around the products. customers, design and lifestyle play a crucial role. More generally, how are the sales and distribution models evolving in the CE market? The supply chain is becoming quicker and quicker all the time. This means that information flows have to become more precise and more reliable, and we are playing an important role in achieving that. The major trend is that the product flow is becoming ever quicker and in smaller quantities. That’s the reason why we are expanding our own warehouse business in many countries. We are going to open a much bigger warehouse in Switzerland and Austria for example. The aim is to optimise the supply chain for our end customers in order to make innovations available much quicker in the stores and to have smaller stocks. Hall 7.2c Stand 101 Bundling TV Furniture and Mounts Value Added Sales in Tight Retail Market It is an open secret that profit margins on flat-screen TVs are low for everyone. From the manufacturer through to retailers the average is around 3%. Consequently selling add-ons like wallmounts, floor-mounts and complimentary supporting furniture is crucial to the retail sector. Paul Noonan, sales manager at Irish retail chain Partners in Europe, based in Shannon, believes that retail staff need to be taught to think ahead: “We work closely with our suppliers. They offer literature and pointof-sale support so our staff know how to maximize the possibility of selling addons,” he said. “There is a range of displays ranging from the 3 metre and 1.5 metre stand alone units with full-motion brackets plus a unit that you can hang on an existing shelf and a counter-based, pointof-sale display.” There was a time when customers were surprised by the need to buy some form of mount with their TV, but Noonan believes that this psychological barrier is more or less over. Hall 25 Stand 102 VIDEO “Generally they are much more aware now and most have already made their mind up before they come to the retailer as to whether or not they need some sort of mount,” he said. “And for sure some people don’t need them but most do.” In an industry that stretches back to the 1930s, wall mounts are a recent phenomenon and there will be plenty more innovations in the years ahead: “I don’t think the technology has been pushed anything like as far as it could be yet and I know that Sanus will be launching a range of automated mounts in 2008. They are also already producing a range of floor mounts and complimentary furniture – the Java range – which includes cupboards and tables which act as supports for people who don’t want to put up wall mounts,” he said. “It’s increasingly important to produce furniture that compliments people’s lifestyle choices and existing furnishing because the fact is that these days women are as much a part of the decision-making process as men.” What is your strategy in order to differentiate your organization from others? We have nearly 1,500 EP-branded retailers in seven different countries throughout Europe. Our strategy is the same in every country: we differentiate through service and through showing the latest innovations early in the shops, which is very important for us. We also present the products in a way that conveys the primordial ideas of design and lifestyle. For nearly half the end IFA International • Tuesday, 4 th September 2007 27
