There are big opportunities for enterprise resellers to sell networking and virtual reality solutions, analysts told resellers at Target Distribution's open day in Bradford.
The open day featured vendor exhibits and sessions throughout the day.
Carl West (pictutred below), supply chain director at GfK, told resellers that networking sales had increased by 12.2 per cent year on year in March 2016.
He said: "Margins are hard with some networking vendors, but networking is still a great growth area. It's an assisted sale, which is where the value comes in."
However, in Q2 2016, distribution sales for networking solutions decreased by 24 per cent year on year. But West said that despite distributors selling less, there is still a growth opportunity for resellers, as they are selling "more and more" networking solutions.
West also said that tablet sales had decreased 25.1 per cent year on year in March 2016, but he insisted there were still opportunities for partners to service the "huge" install base already in place.
The biggest growth area in Q2 for distributors was endpoint security, which saw a 60 per cent increase in value year on year. West explained that while the average selling price has dropped, the sales increase highlights a large growth opportunity.
He ended the session stressing to resellers not to spend their time trying to compete on price with distributors and vendors.
He added: "If you spend your time trying to be price competitive, you are going to put yourself out of business. Do not think that going cheap is going to solve problems. Sell up, don't discount down. Add value and sell-up, if you are up against a distributor you can't compete on price."
Jonathan Wagstaff, country manager at Context, told partners in his session that virtual reality is not just an opportunity for consumer resellers but for B2B resellers as well.
He referenced Big Screen Beta as an example of virtual reality in the workforce, which allows users to see large virtual reality monitors, virtual conference rooms and multi-user experiences where customers can see their colleagues working at the same time, from wherever they are based.
Context conducted a survey of consumers and gamers in the UK, France, Germany, Italy and Spain, and found that 75 per cent of consumers have heard of virtual reality. But 39.5 per cent of consumers also said that upgrading their PC was the biggest barrier to buying virtual reality.
The survey also found that 63.4 per cent of consumers said that having the opportunity to demo virtual reality products was the most important factor when buying virtual reality kit. Wagstaff told resellers this provided them an edge from web-based companies like Amazon.
He said: "Even though the vendors are being very selective with who can sell the kit at the minute, there is still an opportunity to get people excited. It's not just about selling headsets; there is an opportunity to sell components to upgrade PCs and provide virtual reality accessories."
Paul Cubbage, managing director of Target Distribution, said of the event: "The concept of the event is to provide value to our partners. It is a really collaborative atmosphere, where everyone is trying to help each other. You get businesses who have never met before, some of which would normally consider each other competitors, sharing ideas. You don't get that at any other business event that I've ever experienced."
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