Morning Star defiant in face of new rival

Morning Star defiant in face of new rival

MORNING Star is determined to remain the dominant Asus distributor in New Zealand, even though the company now shares the agency with Synnex.

“We are still the main distributor for Asus components, as Synnex has not really got started yet,” says Morning Star vice president Wilbur Tarn.

Morning Star had been the only local distributor for Asus components since Renaissance dropped the agency nearly two years ago, but it did not have an exclusive arrangement as this is against the vendor’s policy, says Tarn.

Asus appointed Synnex as a second distributor for its motherboards, graphic cards and optical drives earlier this month and Tarn admits to having mixed feelings about the move.

“Being exclusive it was easier for us to introduce new products and to set prices for special channels. That will not be so easy now that we have a colleague to work with,” he says.

“I understand why Asus took on Synnex and hope they will help increase awareness of the brand and its market share.”

But Tarn says figures by research group IDC show Asus already holds 40% of the motherboard market in New Zealand, and he is unsure if Synnex can do much to boost these numbers.

He believes smaller motherboard brands will suffer as Morning Star and Synnex both push Asus.

“As Synnex and Morning Star engage each other aggressively, it will become tougher for others to compete.”

While Tarn agrees with Synnex’s goal to help boost the fortunes of local assemblers, he says no one company can achieve this on its own.

“Everyone in the industry has to chip in to achieve this.”

• For more about Synnex’ NZ strategy read 'Grand plan for local build-to-order PCs'.

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