Renaissance Brands has decided to stop selling Asus laptops. It is ending the 10-year relationship with the Taiwanese vendor to focus on its recently formed, exclusive relationship with NEC, it announced today.
The company was appointed as NEC’s only local representative in April, while Asus has four distributors in New Zealand, which are three too many, says Renaissance Brands general manager Mark Dasent.
“Four distributors in New Zealand are too many for a relatively new emerging brand [like Asus] that requires focus and development. The level of margin on Asus now does not sustain a viable business model for four distributors or for the reseller channel,” he claims.
With small margins, Asus had become a fulfillment product for Renaissance, and no longer fits the company’s business model, says Dasent.
“[Our] business model is about representing brands in all aspects relating to sales, marketing and technical support.”
Renaissance will now focus entirely on NEC notebooks and desktops for which the level of support and commitment has been significant so far, says Dasent.
“It is clear they have a strong desire to partner with the channel especially in the commercial space, unlike Asus which is focussed more on mass merchant retail," he says. "We relish this opportunity and challenge to develop the NEC brand and market share in the New Zealand market.”
However, the company still has Asus inventory in stock, which Dasent says will take about two months to clear.
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