VIP Computers enters Irish distributor fray

Trade

1 April 2005

UK-based pan-European components distributor VIP Computers is to tailor its service specifically for Irish resellers and system builders in a bid to significantly expand its Irish business.

The company has appointed Robert Parry as dedicated channel manager for the Irish market, although he will continue to be based from the company’s headquarters in Warrington, England.

The company has recently signed a deal with Irish Express Cargo (IEC) to provide it with a dependable next day delivery service across Ireland. However, it does not rule out establishing an Irish office in the future. ‘VIP is now in a very strong position to selectively choose reseller partners in this market,’ the firm said.

The move is a significant one for the Irish IT distribution scene as it comes after a difficult couple of years coping with the effects of the economic downturn and industry consolidation. VIP Computers says its market research and consultations with both existing and prospective Irish customers have identified significant opportunities. 
‘Our findings determined there was a need for a dynamic distributor who tailors its business to meet the needs and partner with Irish resellers,’ said Karin Hobbs, head of marketing at VIP, speaking to Channels. ‘It is not VIP’s intention to “shake up” the Irish distributor market, but to enhance it.’

VIP stocks a variety of component, peripheral and consumer products, many of which are familiar brands to Ireland, such as AMD, Samsung and Asus. But it is likely to concentrate on introducing brands that it will exclusively distribute here, including PEAK, Mercury, A-Data, Xpertvision and Jetway.

Parry said that building good relationships with customers was of paramount importance to growing VIP’s business in Ireland.
‘We understand and respect that the Irish market is totally different to the UK. VIP is able to rely on strong vendor and carrier relationships, and is working on new partnerships to respond to the unique requirements of this market.’

Hobbs acknowledged that dealing with both distributors and resellers might give rise to some concern over the possibility that it may “poach” reseller customers from these distributors.

‘We are speaking to some resellers, yes, some of which we have dealt with for many years,’ she said. ‘We feel that their input to how VIP is perceived and understanding their business requirements is critical. I understand the possible concerns over “poaching” our
distributors business, but I would respond by saying that VIP’s core ethos is partnership with customers. Poaching goes against this ethos. As VIP is dynamic enough to be able to adapt to the market, we feel that the guidance from our distributor customer is imperative.’

The company conducts 25 per cent of its UK business online through its e-commerce Web site and expects that many Irish customers will also choose to engage online. ‘We are currently developing XML with a few partners to be able to offer new ways of dealing with VIP,’ said Hobbs.

VIP has won a number of industry awards in the UK including Distributor of the Year 2004 & 2003 and Best Distributor Web site 2003. The company’s head office, previously owned by Compaq, is situated in Warrington. This 64,000 sq ft logistics facility features
an advanced latest warehouse management system and STG£6m stock holding. The company also has offices in Holland, Spain and Taiwan. The company’s group turnover was £156million in 2003.

04/10/04

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