Gateway determined to make its strategy work second time around
US manufacturer claims it is here to stay
Gateway has hit back at criticism of its UK return by vowing that this time it is here to stay, and that it has a new business model to reinforce its plans.
Sarah Scott, Gateway’s UK country manager, and former UK desktop business manager at Acer, told CRN: “Gateway withdrew from the UK to focus on its key market – the US – and to consolidate the business to ensure the longevity of the company.
“We have come back now with a totally different business model. Our operating expenses are so much lower than before, we have no retail outlets and we have far fewer staff. If you were to draw parallels, Gateway’s business model is very similar to Acer’s.”
Gateway’s products are currently being sold through Staples, Comet, Currys and PC World, but Scott said that Gateway was also looking at other routes to market.
“In June, PC World started selling Gateway notebooks. We didn’t make a big song and dance about it, because we just wanted to put the products through first and see what the reaction was,” Scott claimed.
“It was a great reaction so we knew we were making the right decision to return. Then we launched with Comet, Staples and Currys and the sales volumes that we are getting is amazing.
“Retail is our primary focus, but as the business expands then there is a very good chance that we will be looking to work with the channel. We are not interested in quick wins. What we want is to develop and maintain strong relationships.”
Asked if Gateway will take on distributors or deal with resellers directly, Scott said: “We will do whatever makes sense to the business. We are not going to add unnecessary cost. If we engage with a reseller that is doing enough business that we can ship direct, then we will ship direct. Similarly, if we need to go through a distributor, then we will.”
Bob Armao, chief executive at online retailer Ebuyer, was confident that Gateway could be a success.
“Provided it gets its strategy right for the UK, I can see Gateway selling well in this market – it has a strong offering. Gateway is a big player in
the US and after a brief blip it is now back on track. We would be open to selling Gateway PCs. They are good quality products and if they are given the right marketing approach they could be a real contender in the UK,” Armao said.
However, not everyone was so positive about Gateways chances. Paul Cook, Acer UK’s managing director, said: “Gateway clearly screwed up in a monumental fashion last time. What’s changed?”