Harbinger set to lift direct sales

Harbinger will be reducing the number of its reseller partners throughout Europe in a bid to increase its direct operation.

The electronic commerce and EDI systems provider, which set up a UK operation last week, has 80 per cent of its sales going via resellers. But over the next 12 months, it aims to cut the figure to 60 per cent and focus more on its direct sales.

Steve Coussins, MD of Harbinger UK, said: ?After that we would expect to have a 50:50 situation. We want to have a good balance of direct and indirect sales channels. The increase of focus on direct sales channels is partly to have more control.?

The launch into the UK will help Harbinger increase its market share. Coussins believed it would gain about 10 per cent of the UK market within the next three years.

?The UK is still the largest adopter of EDI and accounts for 30 per cent of Europe-wide electronic commerce,? he said.

Harbinger is planning acquisitions in France, Germany, Italy and the UK. It is already well on the way to concluding a deal in France, and will be looking out for other purchases.

?Europe accounts for 15 per cent of Harbinger?s business, and is expected to grow to 30 per cent over the next five years,? Coussins said. ?We?ve done our own research and Europe-wide we expect the EDI market to grow by 20 per cent per annum up to 2000.?

Coussins predicted that over the next year Harbinger will mainly see growth in the applications market, but towards 2000 it will change its focus to internet services. It is about to launch its EDI software on Unix and NT platforms.

By the end of 1998, the vendor plans to double its staff to 40 to handle the expected growth in electronic commerce, stimulated by telecoms deregulation in Europe.