Digiland unveils new vendor stable

Digiland unveils new vendor stable

Rejuvinated hardware distributor, Digiland, has taken the wraps off its niche game plan by announcing relationships with seven international vendors.

The company has also split its local sales operations into two branches: consumer and solutions.

Digiland A/NZ managing director, Laurie Carmichael, said all of its new vendor partners were the result of relationships made by its headquarters in Singapore.

The majority were also exclusive, he said.

Across its consumer division, Digiland has signed exclusive agreements with hardware manufacturers, V1 and Compex, for networking and multimedia home products. It has also partnered with EastGear, which produces capture and storage devices for digital cameras, and Enzer, for its range of DVD players and audio products.

The partnerships would allow the distributor to tap into the converging CE and IT market sectors, Carmichael said.

In its solutions business, Digiland has inked deals with Celltech, Accton and Celestix.

These solution sets, which addressed networking and security, were targeted at the SME and enterprise markets, he said. With the exception of Celestix, all were exclusive Australian partnerships.

Carmichael said the distributor had recruited several staff members from its Singapore office to help fuel local sales.

With the new vendor deals under its belt, Carmichael claimed Digiland was on target to achieving its projected $12 million in annual sales. However, he admitted the distributor was still ironing out losses stemming from previous inventory issues and accumulated debts.

"When I came in there were a lot of issues with inventory that needed to be sold off, as well as bad debt," Carmichael said. "Considerable inroads have been made in addressing both of these and there's virtually no excess inventory left. There's also been an enormous amount of bad debt collected."

While the distributor was looking to sign deals with some Australian manufacturers, he said the initial emphasis had been on establishing relationships with the overseas vendors.

"That's where the margins will come from," he said. "Our problem in the past was that we had high demand products with little or no margin."

Digiland is now working on developing marketing campaigns, promotions and education seminars around its new product sets.

Carmichael said it would be looking at signing up both additional resellers and retailers.

"We have to spend more time cultivating retailers and bringing them onboard," he said. "It's about turning the company around and re-engineering it for the future. As long as we have the support of our Singapore headquarters, we can do it."

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