CHS takes on Creative kit bundles

Multimedia giant Creative Labs has extended its distribution deal with CHS Electronics to cover its newly-launched bulk product bundles, which it is aiming at the SI and assembler markets.

Creative has begun bundling its products in unmarked packs of 10 and 20 in a bid to attract the volume system builder and upgrade markets.

Julia Duthie, distribution manager at Creative, said CHS has been chosen to exclusively push the bundles into the indirect channel.

'We have been missing out on the volume SI and upgrade markets. They have tended to import cheap brands. Our bulk packs have heavy Ts&Cs to control branding so they can't be sold as packaged retail product, and they are as unattractive as possible,' she admitted.

CHS sales and marketing director Jan Lawford said the OEM bundles constitute 45 per cent of business in the US and many CHS customers throw away the retail packaging. 'Our expectations are high. The bundles are also cheaper so Creative can compete with Far Eastern cloners. They go well with our CD-Rom and hard disk sales.'