LG has appointed an extra distributor, Altech Computers, to target notebooks, monitors and optical drives.
But the electronics manufacturer has denied industry rumours that it is axing a couple of existing distributors to make way for the new partnership.
LG marketing manager, Paul Reeves, told ARN that the appointment followed the vendor’s decision to focus on a different market.
“Altech deliver tailor-made solutions,” he said. “They will create different packages according to the needs of various resellers and customers. The other distributors are more mass-market and appeal to different audiences.”
Altech sales and marketing general manager, Safa Joumaa, said the tier-one appointment would see his business shifting more than a million dollars worth of LG stock every month, and increasing its annual revenues by up to 15 per cent from its current $65-70 million.
He claimed the move would also see Altech compete with major distributors such as Ingram Micro and Tech Pacific.
Altech currently distributes to about 7000 resellers, many of which already sell LG. But about 20 per cent of them would soon be selling LG for the first time.
Joumaa said this would impact on LG’s market share and increase its annual sales by at least $12 million. To cope with the added load, Altech was adding six staff to its current HQ sales and warehousing teams. Sales staff in Melbourne would double to 10. A similar expansion was planned for its Brisbane office. LG has annual sales topping
$500 million, including whitegoods, audio equipment and TVs. Its other distributors include TodayTech, Galas, BCN, Bluechip Infotech, Leader, Epsco and Edsys.