Digiland to launch PC integration arm
- 12 August, 1998 13:52
Digiland is betting its future on a groundbreaking, build-to-order PC integration business backed by its Singapore-based parent, GES Singapore.
Digiland's MD, Laurie Carmichael, last week told ARN that this strategic decision could generate more than 25 per cent of the organisation's overall revenue base - which totalled $108 million this year - over the next 12 months.
Backed by GES Singapore - a $500 million-a-year manufacturer and distributor of PCs, peripherals and related computer products to the Asia-Pacific marketplace - the PC integration business will see Digiland supply GES' own brand of PCs which the company already distributes throughout Asia, the US and Germany.
Former Samsung staffer Robert Inguanti has been recruited as the distributor's national sales manager for GES products.
At this stage, Digiland will not use PCs from its existing Hewlett-Packard, Digital, NEC and IBM lines for integration, Carmichael said. However, he alluded to the idea of signing a number of OEM agreements in response to a growing number of requests from customers who are looking to Digiland to build PCs for them.
When asked if Digiland's venture into the world of PC integration would impact adversely on its resellers, Carmichael confirmed the distributor would not sell out on them in its chase for fatter deals and margins.
"If we fob our resellers off into a sub-distribution role then we are not really meeting our objectives as a distributor," Carmichael said.
But, while Carmichael is confident that Digiland has secured its future in the channel, he claimed other Australian-based distributors would struggle to survive in such an insular marketplace without substantial backing from cashed up international partners.
"Australian distribution organisations have largely underestimated the amount of financial backing needed to survive in the current marketplace," Carmichael declared.
"I expect that by around this time next year there will be no Australian-owned distributor left in this country for precisely this reason. If you don't have a parent company which can cater to your financial needs then as a distributor you will struggle," Carmichael warned.
Carmichael suggested the only alternative to those struggling distributors will be to do deals with Asia-Pacific conglomerates or offer themselves up to be acquired by the growing number of global distributors entering Australia, including Ingram Micro and Hall-Mark.