Toshiba Strengthens Distribution


5 Aug 2011
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Toshiba India has revamped its distribution model in the country as part of its strategy to grow 100 percent year-on-year in 2011. The vendor has opted for a hybrid model, continuing to operate through national distributors (NDs) for matured markets while appointing regional distributors (RDs) for several upcountry regions. In addition, Toshiba is putting in place a strong sub-distribution channel.

Informed N Sivakumar, General Manager, Toshiba India, “We have appointed RDs in emerging markets such as Goa, Bihar, Jharkhand, Chhattisgarh, Uttarakhand, Jammu & Kashmir, Orissa and the north-east. We will continue to address the rest of the market through NDs such as Ingram Micro, Redington and Compuage.”

Patna-based Caltron Info Trade will be in charge of Bihar and Jharkhand, while SA Infoways has been appointed for Orissa. Goa is handled by Jamson Computers, while Uttarakhand and J&K are handled by VSM Technologies and Digital Systems respectively. The entire north-east will be managed by Datamation Services, while the Chhattisgarh distributor will be Raipur-based Mahesh & Co.

Toshiba will bill RDs directly and will not allow NDs to operate in these territories. “Thus far our business was largely concentrated in the top 30 cities, while the states where we have appointed new RDs did not account for much. We feel that a dedicated RD can focus more on building a channel than an ND,” explained Sivakumar.

Nevertheless, Toshiba is betting on NDs playing a bigger role in other markets, where to support the NDs the vendor has started appointing a strong sub-distribution channel. Said Sivakumar, “We have appointed close to 25 Premier partners who will stock-and-sell through smaller resellers. They will buy from NDs.”

Sivakumar also informed that Toshiba will increase the number of its service centers to 100 by year-end as new territories are covered.

source : crn
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