Australian components distributor Altech is making another bid at entering the local market – this time opening its own operation here.
The Sydney-based company has set up offices and a warehouse in Mount Wellington and will open for business on April 1.
It has appointed former TPG operations manager Johnson Koo to run the local business and will start with five other staff in sales, administration, service and warehouse roles.
In 2004 Altech appointed Geeks Direct as its New Zealand distributor, but the two firms parted company the following year.
Altech then searched for another local distributor, but when these efforts bore no fruit it decided to establish a local office instead, which the company said would open by the end of 2005.
However, this did not happen until now because Altech has been involved with major projects back in Australia, such as becoming Microsoft’s third OEM distributor there and expanding to other Australian centres, says the company’s special projects manager Kevin Hartin.
“We have been looking at [setting up in New Zealand] on and off for about three years. During this time we put some big projects to bed and can now do it properly.”
Two of Altech's major brands, memory-maker Corsair and PC-case vendor Antec, have also been pushing the company to enter the New Zealand market, says Hartin.
The New Zealand expansion is part of a “growth spurt” for the company that will see aranche opened in Adelaide in the near future, says Hartin. “New Zealand is the first step for us internationally.”
Altech is confident the New Zealand operation will be a success, as it has already gained experience opening branches in Melbourne, Brisbane and Perth.
Having a fully-functional operation from day one and the right people with existing relationships in the industry, will also be a critical success factor for the company, he says.
According to Hartin, Altech brings quality products that are proven in Australia and elsewhere, along with a different attitude to distribution in this country.
“We are very proactive with the marketing of our products and while we have sharp pricing, we are not a discounter."
Meanwhile, Altech also differs from other distributors in that in Australia, 75 percent of its orders are placed through the company's website, says Hartin. “This is particularly the case with smaller, independent dealers. During the day they concentrate on running their business and then order online out of normal business hours.”
But Altech will not be representing all the brands it does in Australia here, as some have existing distribution agreements on this side of the Tasman. “We will be selective. We will be picking our opportunities and focus on areas where we can add value. We do not want to upset the equilibrium.”
Brands it will represent here in addition to Antec and Corsair include BenQ, ASRock, Foxconn, Galaxy, Genius, HIS, Inno3D, Killer, MSI and its own range of gaming accessories, NRG.