Roundtable: Distributors Dig Deep
Challenges and trends that are changing the industry
April 2008 By Nancy Klosek
We recently contacted some of the CE industry’s major distributors for their views on the hot issues impacting the retail channel, and to give retailers a quick snapshot of how distribution services have changed over the last year. In this report, we asked distributors to name the biggest challenge they and their customers face this year, as well as some of the trends affecting their business models. Look in next month’s “The Source” section for part two of our series.
Bill Stewart, president, Petra Industries
Challenge: We began our business and continue to specialize in consumer electronics accessories, an imperative part of driving up margin in electronics sales. As usual, we have a large selection of products at unbeatable prices, plus we offer our retailers creative merchandising opportunities such as POP display options. Basically, we are an accessories house, and we will continue to evolve our business in this area because this is what will keep our retailers successful.
Trends: Our customers have come to expect low prices and high service levels from us. We continually work on increasing our efficiencies so we can exceed the service levels that our customers expect from us while still remaining competitive in the industry. We continue to listen to our customers’ needs, and constantly tweak our product and vendor offerings based on that.
Our large presence in blind-drop-ship fulfillment area has opened a lot of opportunities to us. Petra offers full EDI capabilities and customized packing slips, and our state-of-the-art pick-and-pack system gives us the flexibility to customize shipping solutions to each customer. Basically, we can easily supply all retailers and e-tailers, regardless of size.
Pete Richichi, executive vice president, sales and marketing, WYNIT
Challenge: Retailers’ number-one challenge is dropping dollars to their bottom line. The business models of superstores and e-tailers commoditize products and drive the profitability down for smaller, independent retailers. WYNIT stocks a wide range of accessories that complement the hottest products and enable retailers to build margin with add-on sales. We also develop unique programs for authorized resellers that offer specific SKUs unavailable at superstores or online. Top-notch service and a knowledgeable sales force develop and maintain a loyal customer base.
Trends: The nature of the e-tail marketplace challenges manufacturers to maintain the pricing integrity of their products. WYNIT has responded to this objective by creating customized ‘authorized dealer’ programs that ensure compliance with each manufacturer’s MAP policy.
Bill Stewart, president, Petra Industries
Challenge: We began our business and continue to specialize in consumer electronics accessories, an imperative part of driving up margin in electronics sales. As usual, we have a large selection of products at unbeatable prices, plus we offer our retailers creative merchandising opportunities such as POP display options. Basically, we are an accessories house, and we will continue to evolve our business in this area because this is what will keep our retailers successful.
Trends: Our customers have come to expect low prices and high service levels from us. We continually work on increasing our efficiencies so we can exceed the service levels that our customers expect from us while still remaining competitive in the industry. We continue to listen to our customers’ needs, and constantly tweak our product and vendor offerings based on that.
Our large presence in blind-drop-ship fulfillment area has opened a lot of opportunities to us. Petra offers full EDI capabilities and customized packing slips, and our state-of-the-art pick-and-pack system gives us the flexibility to customize shipping solutions to each customer. Basically, we can easily supply all retailers and e-tailers, regardless of size.
Pete Richichi, executive vice president, sales and marketing, WYNIT
Challenge: Retailers’ number-one challenge is dropping dollars to their bottom line. The business models of superstores and e-tailers commoditize products and drive the profitability down for smaller, independent retailers. WYNIT stocks a wide range of accessories that complement the hottest products and enable retailers to build margin with add-on sales. We also develop unique programs for authorized resellers that offer specific SKUs unavailable at superstores or online. Top-notch service and a knowledgeable sales force develop and maintain a loyal customer base.
Trends: The nature of the e-tail marketplace challenges manufacturers to maintain the pricing integrity of their products. WYNIT has responded to this objective by creating customized ‘authorized dealer’ programs that ensure compliance with each manufacturer’s MAP policy.
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