Logitech restructures distribution channel

Logitech restructures distribution channel

Structure overhaul aimed at educating up the channel to offer higher margin products and reach a wider market base

Consumer electronics vendor, Logitech, has overhauled its engagement with the channel.

Seeking a better value-add through its channel program, the vendor is restructuring its distributor network into two layers: Two master distributors, Synnex and Ingram Micro, and a series of sub-distributors under the “platinum distributor” label.

Currently, Anyware, Bluechip Infotech, Mittoni and All Interactive Distribution (AID) are classified as platinum distributors.

A third partner category, platinum partner, is for resellers and integrators and currently includes Centrecom Corporate, Fluidtek and Wireless1.

Logitech director, George Saad, said the changes were aimed at bringing more value to the vendor’s channel, and working better with partners to target end-users.

“When I had a look at our channel network a few months ago, I realised we had a very ad hoc approach to partnering,” he said. “The aim of the restructure is to have a more systematic approach. We will be sitting down with our platinum distributors to map out the business and our product roadmaps, and offer them assistance on how to educate their resellers.”

Eighty per cent of Logitech’s business is through retail. While the vendor was committed to growing that business, it is also keen to find additional channels and partners.

“We’re looking for distributor partners in gaming, music, AV, independent resellers – basically, as long as they target a value-add in a field that we’re not strong in,” Saad said.

Logitech is also recruiting to help partners with the new arrangement. It recently brought Paul D’Ambra on-board as national sales manager for channels.

He will focus on educating partners. The vendor will also be appointing an account manager for channel, bringing the total headcount to 16.

“We want to make it easier for our resellers to engage with the end users, on more than just price,” Saad said.

“End-users want choice – and are willing to buy higher featured products that help them engage with their home equipment at a time when there’s a cocooning effect going on with people in their homes.

“We want our channel to be able to sell a $300 peripheral, which will generate a much larger margin than a $100 one.”

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Tags SynnexIngram MicroAnywarebluechip infotechlogitechMittoniAll Interactive Distribution

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