Niche distributor, Tegatech, is setting up its first overseas branch in Europe and planning to open another in the US before Christmas.
The office and warehouse was established in Kosovo last month. The ultramobile PC (UMPC) distributor has hired five staff from the area to manage the European branch, which will initially stock core products only. It will work closely with vendor partners to grow that market.
With export amounting to 15 per cent of its business, Tegatech principal, Hugo Ortega, said the move was a logical choice as it saved on duties, taxes and freight expenditure.
“It was a logistical nightmare to deal with in Australia so we ended up looking at an overseas office as a viable option to deal with export,” he said. “We have seen increasing demands from resellers to sign up in Europe so we decided to open an office and sell directly from there.”
Tegatech has under a dozen resellers signed in region but is expecting to garner 1000 partners, enough to rival its Australian reseller base. Ortega predicted yearly turnover to reach Euro1 million.
“There are more projects going on in Europe and we are already quoting on 2500 mobile PC units for entertainment purposes in the travel industry,” he said. “We are at the final stages of winning the tender with one of our resellers in the UK.
“There are a lot of opportunities, more substantial than there are in Australia so there is no reason why we cannot make a business equivalent to what we have here.”
Tegatech’s expansion plans also extend to the US and it will open a small branch in Florida before Christmas. While the distributor rarely sells into the country, it imports heavily from the US and the new office and warehouse will help leverage off currency changes.
“What we want to do is create a global brand of Tegatech in the distribution channel so we have resellers able to deal with us around the world,” Ortega said. “We hope to give resellers better opportunities to create more business.”
The distributor has no immediate plans to foray into other continents but will consider its options depending on whether it can fund any further growth. While Ortega acknowledged the global economy is still dour, he was confident of an imminent rebound.
“We are capitalising on the next boom so we are making sure we are in prime position when the upturn comes,” he said. “The economy, we feel, goes in ebbs and flows and the current bust is a result of market corrections and the corrections themselves are almost done now.
“Housing prices, currency and the retail sector are starting to stabilise and, with these three things in mind, it all points to the recession ending and a possible boom coming. We are getting poised with a bigger footprint to take advantage of that when the economy turns.”