Lexar Media has appointed two new distributors, Tech Pacific and WestGroup, as part of an expansion push that also sees the company opening a Sydney sales office.
Lexar’s country manager for A/NZ, Kar Yee Fransham, said the deal would allow the vendor to leverage Tech Pacific’s retail strength while addressing the corporate space through traditional memory specialist, WestGroup.
The deal would cover Lexar’s USB flash drives and high-speed, high-capacity digital media cards, Fransham said.
Tech Pacific’s PC and server category manager, Josh Velling, said the demand for storage was growing.
“There are more and more devices going out into the market, particularly digital cameras,” he said. “The higher the resolution, the higher the demand for storage. We expect some good growth out of this category.”
Fransham said Maxwell had previously been an exclusive distributor of the brand for two years before Lexar established a presence in the country. She said Maxwell had decided to resign the brand. Maxwell managing director, John Swainston, said the decision to do so was partly based on the volatility of the market segment, pointing out that digital cameras alone had halved in price over the past year.
He said Maxwell already had a deal with Nikon and managing the two relationships, plus the added competition Tech Pacific would have brought, influenced Maxwell’s decision. The new distribution arrangements for Lexar follow the news that Kodak will join forces with the memory vendor in an attempt to gain a larger share of the removable digital memory market.
Lexar will manufacture and distribute a full range of Kodak branded memory cards and offer consumers mass-market memory cards. Kodak will contribute its brand name and global distribution network.
Fransham said the Kodak deal was good news for the new distributors because it would mean automatic acceptance for Lexar products in Australia. “Kodak is a top brand name and will mean brand name penetration in retail outlets,” she said.
Fransham said Lexar would differentiate its products from Kodak by applying a 10-15 per cent premium on Kodak’s products. USB drives would be of increasing importance, according to Fransham. They currently accounted for 30 per cent of Lexar’s business, she said, and sales were expected to double year-on-year for the next two years.