Distributor-branded products feature local service, offering an advantage. “In 2010, we sold under Santec for more than 75 percent of our total sales,” Diestel said. Santec does not make low-cost products, so it does not compete against budget manufacturers.
For the brands represented, Santec aims to make the partnerships as mutually beneficial as possible. This means that it does not add as many brands as possible, but focuses on a small number of quality manufacturing partners, Diestel said.
Koukaam works to offer a balanced product offering from other makers to serve customer needs, without undercutting them. “Our relationships with manufacturers are still in a good shape,” Kadaně said. “Also, we are concentrating on NVRs as our own products and reselling mainly network camera management systems, which are for different target groups.”
Brand Development
Distributor brands will flourish with careful product positioning, keeping in mind its resale partners. Koukaam will strengthen its brand marketing in 2011, with plans to attend worldwide exhibitions, Kadaně said.
Santec's branding demonstrates its commitment to its product line, launching a brand new logo in 2010. Despite the higher costs of R&D and branding, the company feels its investment has paid off. “We will definitely increase the profile of our Santec brand in the future because we see very good market success,” Diestel said. “With Santec, we can create our own products and market our own ideas.”
The way to market is hardly set in stone. While the phenomenon of distributor brands seems like an oxymoron, it reflects market needs. A distributor brand has evolved from slapping a label on a box at a marked-up price to a more thoughtful consideration of customer needs. As security matures, there is enough room for offerings from solution providers of different caliber.