A small group of UK distributors and resellers are growing to the detriment of their rivals, according to a study by analyst firm Plimsoll Publishing.
The firm’s Plimsoll Portfolio Analysis identified a group of 111 emerging distributors and dealers in the UK, which are taking more control of the market in 2006.
According to the analyst, growth in the market has been sporadic averaging 1.9 per cent two years ago and 4.3 per cent last year, but the selected group of 111 (which CRN cannot name) are increasing sales at twice the average of their competitors, averaging a 30.2 per cent growth.
Of the 360 channel firms questioned for the research, 108 were found to be suffering the consequences of these high growth companies.
David Pattison, senior analyst at Plimsoll said: "This is absolute evidence
of
how most of the growth in the market is going to a select group of
companies.
“It’s evidence that the market is changing as the revenue and growth streams of even five years ago are not the same as for 2006. These companies seem to know some of the answers and they are telling us all something about the future direction of the market.”
It is not just the larger companies that are growing, Pattison added.
"There does seem to be a buoyant market among the smaller companies but the competition is more focused. Companies tend to be less concerned with the overall market and more concerned with their immediate competitors,” he said.
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