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Distributor dust-up: Asus confident after Renaissance move to NEC

Distributor dust-up: Asus confident after Renaissance move to NEC

The end of a 10-year relationship with Renaissance Brands has not affected the local confidence of Asus. Renaissance Brands announced last week it had decided to stop selling Asus laptops to focus its recently established relationship with NEC. General manager Mark Dasent also claimed four distributors were too many for an emerging brand like Asus.

However, Ted Chen, director of Asus in Australia and New Zealand, does not believe the end of the relationship with Renaissance Brands will affect the company, saying Asus continues to show strong sales.

“In October, Asus in Australia received over 5000 PC orders in one week. These figures and our long-term partners’ rapid growth explains itself.”

He says the company could hit global revenues of around $32-billion this year – 70 percent growth year on year – thanks to its network of 300 distributors worldwide.

“This growth is completely attributed to our efficient distribution partners. So Asus doesn’t need to take the direct sales approach as more and more other vendors are doing, but is going to stick with our long-term distribution channel partners.”

Once Renaissance Brands quits Asus, the company will be left with two local notebook distributors, Ingram Micro and Morning Star, as well as Synnex for its components such as motherboards, graphics cards and optical drives.

Chen, who is based in Australia, still expects strong local laptop sales in the fourth quarter. “We’re in a very good position.”

He adds Asus expects a strong wave of growth in the coming quarter with the launch of its new Eee PC in education, commercial and consumer markets worldwide.

“We strongly believe our distribution and channel partners will be very excited with this new product.”

Meanwhile, Renaissance believes it can establish NEC as a real contender on the local PC market now that it has an exclusive focus on the brand.

“We see an opportunity to grow NEC to a market share of four to six percent,” says Mark Dasent.

He believes NEC is also likely to be a more rewarding business for Renaissance; as it has access to the company’s notebook, as well as desktop products, whereas Asus offered only laptops.

In addition, the focus with NEC will be on commercial channels, while Asus focused more on the consumer and retail markets, says Dasent.

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