Calmer seas ahead for European distribution

GTDC summit reveals confidence is creeping back into distribution on a global basis

Levelling out: The European distribution market is stabilising in line with the US

The European distribution market is beginning to stabilise in line with the US, according to the Global Technology Distribution Council (GTDC).

Distributors in both the US and Europe are planning to capitalise on the increasing sales opportunities arising as a result, the GTDC claimed at its eighth annual Vendor Summit in California.

The event featured keynotes from Intel chief executive Paul Otellini and Aruba chief Dominic Orr, as well as panel discussions and research presentations from analysts NPD Group and Context.

Tim Curran, chief executive of the GTDC, said: “It is particularly exciting to see that the European market is beginning to show similar signs of stabilisation that we started seeing in the US earlier this year.

“Our confidence is supported by aggregated sales-out data from leading IT distributors. This data shows improving demand conditions and other positive developments, such as a levelling in US average selling prices,” he said.

“Collaboration and execution between distributors and vendors is especially crucial right now – and from what we experienced at the summit this year, it is clear that these partnerships are stronger than ever.”

The summit, called “Building Business in IT Distribution”, also polled 200 vendors on their future distribution plans. Interestingly almost 50 per cent of those respondents revealed that they intended to increase sales through distribution and cut back on direct sales.