NatComp is moving away from IT distribution and considering a direct sales model for its brand of audio-visual and consumer products.
Although the Sydney-based supplier currently garners 98 per cent of its business through indirect sales, company managing director, Fabio Grassia, said dramatic changes affecting the entire IT industry were making it difficult to make ends meet.
He cited ever-falling margins, slow sales and a lack of consumer confidence during the past six months as key concerns.
NatComp is now assembling a range of branded AV products including DVD players, recorders and portable hardware, MP3 players, home theatre systems, LCD TVs and digital cameras.
The products were sourced from Asia, Grassia said. The company was looking to grow its presence in the AV space as a way of lessening its reliance on traditional IT products, such as PCs, he said.
"AV is the only area with margin in it - there's no margin in the IT area at all anymore," Grassia said. "The IT market is saturated - we are seeing dealers drop off like flies."
In the meantime, however, NatComp had signed as a diamond dealer for NEC's range of desktop PC and notebook hardware, he said.
The contract comes after its decision to end its relationship with Daewoo Computers four months ago. Grassia said he was attracted to the deal because of the vendor's strong branding. The products were the only computers now stocked by NatComp.
"We have been importing PCs for years and branding them but we have stopped doing that," he said. "NEC is not the cheapest, but it's got a good brand. Consumers will pay for that."