UK strength bucks global trend
Networking channel outperforms European and US counterparts, according to Global Touch
The UK networking channel is performing far better than its European and US counterparts, according to analyst Global Touch.
Although the latest report claimed that the worldwide networking channel experienced a tough first quarter in 2003, Denise Sangster, chief executive of Global Touch, which produces the quarterly Channel Tracker report, said the UK was leading the way.
"The UK is in far better shape than any other region at the moment. The European Union [EU] as a continent may be following the US, but the UK is bucking the trend.
"The UK has made some hard structural changes over the past 20 years that the EU has only just started making."
However, the survey of networking resellers in Europe and the US found that over 54 per cent of respondents in Europe stating sales were 'below' or 'extremely below' expectations.
This compared with the 52 per cent of US respondents who believed that sales were in line with expectations.
"It's very difficult to get people to give you a truthful picture in terms of equipment sales," said Tom Fellowes, sales director at reseller Spitfire.
"Our premises equipment sales were quite disappointing this quarter, but March is usually a good month."
Global Touch also stated that 83 per cent of its respondents in the US and 73 per cent in Europe said that they had experienced a change in customer spending.
Fellowes added that Spitfire has had more success in selling services. "Customers are concerned with reducing costs, they aren't very keen on capital expenditure," he said.
Sangster explained that there is a great opportunity for resellers to embrace new ways of selling. "I think resellers don't look at things like alternative financing early enough in the sales cycle," she said.
Martin Lockett, development director at Logical, added: "In a difficult market, focus should be where networking creates value by reducing costs or improving service."