Distributor brands seem to compete with the nature of reselling. The reality is more complex and not always so mercenary. A&S talks to distributors about maintaining product lines and customers, while promoting represented partners.
Distributor brands seem to compete with the nature of reselling. The reality is more complex and not always so mercenary. A&S talks to distributors about maintaining product lines and customers, while promoting represented partners.
Distribution is a fundamental part of the security industry. A manufacturer can significantly expand its reach into a new territory with a reliable channel partner. This enables makers to focus on product innovation, rather than set up costly branch offices in each target region. The distributor will navigate local customs and sales, working to find suitable buyers. This general model has worked well for manufacturers and channel players, enabling win-win operations.
While the two-tier distribution model is still beneficial, it requires manufacturers and distributors to split profits. Some makers choose to work with integrators directly on projects, eliminating the need for local representation and garnering greater income. Affordable products also drive profit margins down, resulting in smaller returns for the manufacturer and the distributor.
The financial crisis hit everyone throughout the supply chain hard. As demand slackened, vendors rushed to offer more budget-friendly solutions, and distributors could not set resale prices too high, resulting in competitive price wars. With the recession only abating now, distributors were forced to find new sources of income.
The distributor brand is by no means a novelty, but the gloomy economic climate accelerated development. British distributor Norbain has maintained its successful line of Vista products, adding a Xeno line developed for “cutting costs not corners” in late 2008. German reseller Videor has also done well with its Eneo brand of products. Norbain and Videor declined to comment for this feature, but exemplify success stories in both their distribution and manufacturing businesses.