TodayTech will continue to source Intel and Western Digital products from other distributors but will now turn its attention to distributing a broader range of finished goods, its managing director said.
A defiant Jack Zhong said the company would soldier on, despite the loss of distribution agreements with both vendors this week.
He said the change in business relationship would have a negative impact on revenue, but was confident the company could continue to find a place in Australia’s distribution landscape.
“The distribution business is getting tougher and tougher, particularly around the products with transparency in pricing, and that are low-margin and high volume,” Zhong said. “Continuing to be a components distributor is not the best business solution for TodayTech going forward.”
Zhong will now look at expanding the distributor’s portfolio of finished retail goods such as printers, CE hardware including media players, LCDs, notebooks and scanners. It will also continue to pre-build PC systems for resellers that still want that service. The company’s vendor partners include AOC, Chenbro, Phillips LCD and MSI.
“Resellers come to us not just because we are a distributor, but because of our services, support and locations,” he said. “We won’t drop these products just because the relationship has changed – we’re not seen as competition to the [other] distributors.”
Zhong said TodayTech’s China business also continued to experience growth.