Channel trends - Partners show brave face over net

Contrary to popular belief, resellers do not feel threatened by emerging internet channels, according to new research.

Contrary to popular belief, resellers do not feel threatened by emerging internet channels, according to new research.

Researcher IDC found that channel partners in general are unconcerned about the growth of alternative delivery methods that the Internet has spawned, such as WStore and Buy.com, because users continue to buy through traditional outlets.

Janet Waxman, programme director for system and storage distribution channels research at IDC, said: "While many customers use the Internet for information gathering, the majority are not switching to pure Internet procurement models."

But resellers, distributors and VARs did express concern that their suppliers were not discussing their Internet strategies with them, particularly regarding details over schedules and where the channel fits into vendors' Internet strategies.

Waxman said: "To ensure the ongoing success of the vendor/channel relationship, and to win loyalty and business from the channel, vendors will have to do a better job of communicating their vision and strategy."

However, resellers highlighted the many opportunities the Internet is creating. Respondents to the survey, entitled The Impact of Internet Channels: A Study of Customer IT Buying Preferences, which included interviews with channel players and users, said the Net elevated their ability to create value-add and levelled the playing field by extending their reach to a larger audience.

Other Internet benefits included the low cost of entry into some markets and simpler business processes, such as ordering and goods tracking with suppliers. These benefits had saved resellers save money and helped to improve customer relations in some cases.

"The Internet, used correctly, will strengthen vendors' relationships with channel partners and create supply chain efficiencies," added Waxman.