Plimsoll: aggressive VARs eating up the market

Latest research from analyst identifies a group of 187 "emerging" players that are grabbing lion's share of the market

A select group of UK resellers is gobbling market share quicker than the rest, according to analyst group Plimsoll.

The market watcher claimed that 187 emerging firms have increased sales by an average of 22 per cent over the past year, and are taking further control of the market as 2012 kicks off.

This is despite growth in the market being "sporadic", averaging three per cent in 2010 and four per cent in 2011. Plimsoll examined 983 firms to reach its findings, which also revealed that 162 were suffering the consequences of these high-growth companies, seeing sales drop by 13 per cent in the same period.

David Pattison, author of the study, said: “This is absolute evidence that whatever growth there is in the market is being captured by a select group of companies.

“It is clear that the market is changing. The revenue and growth streams companies took for granted a couple of years ago have changed. Frankly, it is the one question that we all want to know the answer to: ‘Where is the market heading?’ These 187 winning companies seem to have the best idea."

And growth is not just being achieved by the largest companies in the market, Plimsoll claimed. It ranges from firms with £500,000 turnover right up to £50m-plus turnover.