‘We don’t want to compete against billion-pound distributors’: Ikonic channel chief

Russell MacGowan discusses vendor expansion, recruitment plans and how the distributor is looking to strengthen its position amid sub-£100m channel partners

Manchester-HQ distributor Ikonic does not want to go head-to-head with billion-pound distributors, instead targeting areas of the channel where its larger rivals have less reach.

Six months after joining the business, channel director Russell MacGowan tells CRN the distie sees a particular opportunity among sub-£100m resellers, VARs and MSPs, which he says increasingly feel overlooked by larger players.

“We don’t want to compete against billion-pound distributors.

“It’s about where we can complement, where we can dovetail. How can we take some of your products and solutions out to a market where we’re particularly strong and you’re not, and how can we drive that new business?”

Ikonic currently serves around 11,000 active customers, with approximately 6,500 to 7,000 providing recurring business across the UK and Europe.

“Our business model makes us extremely strong in that sub-£100m turnover category of channel partner,” MacGowan says.

“The channel has focused away from your sub-£100m businesses, and sometimes they feel left out and left behind.

“They don’t get the dedicated account manager that they once had.

“If you’re an MD of a £50m reseller or MSP, your clients are mission critical to you and the service you provide is mission critical. They need quick answers and they need quick responses, and that’s what we can give at Ikonic.”

Rather than competing directly with larger distributors, MacGowan says Ikonic wants to extend their reach into parts of the market where it has established customer relationships.

“They’re getting an extension of their own business, where we’re already strong and we have long-standing customer relationships, so it works for all parties.”

Vendor strategy delivers growth

MacGowan’s first six months at Ikonic have also focused on reviewing the organisation’s vendor relationships and identifying opportunities to simplify processes and improve communication between suppliers, its sales team and channel partners.

The strategy is already producing results, according to the exec, with one of Ikonic’s key vendors surpassing its entire 2025 turnover through the distributor this year.

MacGowan argues that momentum does not necessarily require fundamental changes to existing relationships.

“Sometimes it’s just focus,” he says.

“The vendor is already there and their product was great. Our sales team is already there and they’re great at what they’re doing.

“It’s about joining those links, getting the communication flowing a little bit better and getting that message out into the channel.”

New vendors in the pipeline

Expanding Ikonic’s vendor portfolio represents another part of MacGowan’s strategy.

The distributor works with companies through both official distribution agreements and partnerships, with existing relationships including Lenovo, HP Inc, Riello UPS, Power Technologies, Newline and Teltonika.

MacGowan adds that five or six vendors have approached the business over the past six months, with several potential additions expected to launch before the end of the summer.

He stresses that brand recognition alone is not enough to secure a place in Ikonic’s portfolio.

“It’s got to be that value proposition driven, because just aligning purely based on brand awareness, it doesn’t work,” he says.

“If there are already 25 distributors for an oversaturated market, they might be very successful, but it might not mean it’s the right partner for us to choose.”

Instead, Ikonic assesses the investment each side is prepared to make and the areas of the market where the distributor can offer vendors additional reach.

“It needs to be something where we can add value to the vendor, but the vendor can add that value to us, and then we can take that to market for them and add value to the channel.”

Navigating memory shortages

That flexibility has also helped Ikonic navigate the memory chip shortages affecting the channel.

MacGowan says the disruption began towards the end of 2025 before intensifying during the first quarter of this year.

“It’s been challenging, but the position that we have and the flexibility we have to use our pan-European status in terms of securing product has been key,” he says.

Ikonic increased its stock holding by between 22 and 24 per cent during Q1 to protect product availability and meet increased channel demand.

The strategy reportedly contributed to a record first quarter for the distributor.

This positive start follows a challenging period for the firm, as earnings dipped 10.1 per cent to £125.8m amid what CEO Chris Perry toldCRNwas “a volatile market”.

“Sales fell slightly overall, but that was a conscious decision to focus on quality service and value-added margin,” he added at the time.

Where next for Ikonic: Expanding the team and distribution model

Ikonic is also preparing to expand its channel team as its vendor portfolio grows.

MacGowan says the business is recruiting across vendor management, technical expertise and sales roles after spending his first months reviewing the existing organisation.

“This is a successful business that’s showing growth, so it’s not about tearing up the playbook,” he says.

“It’s about enhancing and maybe shaping it slightly differently.”

The distributor plans to strengthen its pre-sales technical capabilities to support channel partners pursuing larger projects and provide greater expertise to existing and potential vendors.

“You want expertise, and I’m never going to plan to be an expert on every technology and vendor out there,” MacGowan says.

“It’s about getting the brightest and cleverest people we can to enhance our business and enhance that customer experience.”

The distributor is also developing internal AI tools designed to reduce administrative burdens and give salespeople more time to engage strategically with customers and vendors.

“The channel has changed, the way that we interact with people has changed and the portfolio grows, so we need to strip away elements from the sales team to allow them to focus more on that part of interaction,” he explains.