Yamaha Music Australia has brought on Simms International to be its exclusive distributor of its products through the channel.
Simms International product marketing director, Gavin Troxler, said the deal came about after the distie approached Yamaha in October, 2009.
“As they were introducing iPod dock products into the marketplace we approached them with our reach into the Apple reseller channel in mind,” he said. “They had no presence in the Apple reseller channel, obviously they have a presence in the mass-merchant retail channel, so for them it was a means of penetrating the reseller channel.”
While Troxler said a list of suitable retailer targets would need to be agreed to by both parties, he said there was no limit on which resellers the new arrangement could sell to.
“Predominately, we’ll focus on our Apple reseller channel and the store, but we are going to be servicing certain mass merchant retail accounts where Yamaha don’t have a strong presence but Simms do,” he said.
There is no set limit on when the exclusivity will expire or any minimum sales requirements, but Troxler expects the agreement will be reviewed on an annual basis.
“If we’re doing the job we should be doing and penetrating the Apple channel and growing the market for Yamaha, there should be no need for a review,” the marketing director said. “We’re expecting a fairly significant increase in revenue opportunity in this category with Yamaha, especially with the breadth of products they’re bringing in.
“Initially, we'll target the premium resellers, Apple store and then our own Apple resellers. Those are all existing customers.”