Synnex's trans-Tasman jaunt

Synnex's trans-Tasman jaunt

Synnex Australia has announced plans to expand into the New Zealand market.

Managing director, Frank Sheu, said the distributor's Australian business had grown to the point where it felt comfortable expanding across the Tasman.

"Synnex Australia has grown 1000 per cent in revenue from when we first launched in Australia [seven years ago]," he said. "We have also grown from 300 dealers buying from us every month to more than 3000 and the product range is ten times as large."

To facilitate its Kiwi venture, the distributor would either acquire a company already operating in New Zealand or develop a joint venture model, Sheu said.

"Our preference is not to start a greenfield business because maintaining a management talent pool is always a constant challenge for us as a high growth company," he said. "Acquiring the local management talent is the real motivation."

The New Zealand market itself had a number of attributes which made a move attractive, Sheu said.

"Economically, New Zealand is progressing quite well, so we are under pressure from our vendors to move very quickly," he said.

The structure of the distribution market also favoured entry by Synnex, Sheu said.

"The other leading distributors put together are probably only half the size of Tech Pacific NZ, so it is a very top heavy and not very competitive market," he said.

Commenting on the recent Tech Pacific and Ingram Micro merger, Sheu said Synnex had planned its New Zealand move well before the news broke. And he didn't expect the two joining forces to have a big effect on the market.

"Tech Pac NZ is already quite big, but Ingram is quite small so it won't change the market much," he said. "Tech Pac NZ holds about 35 per cent market share and Ingram about five."

Where Ingram was broad-based, Synnex would be more selective about vendor relationships and focus on customer service, Sheu said.

"We are more involved with the whitebox market in the SOHO and SMB space, so we will all have room to play," he said.

Follow Us

Join the newsletter!


Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.



Meet the leading customer-centric Microsoft channel partners

Meet the leading customer-centric Microsoft channel partners

Microsoft honoured leading partners across the channel following a year of customer innovation and market growth in New Zealand. The 2018 Microsoft Partner Awards recognised excellence within the context of the end-user, spanning a host of emerging and established providers.

Meet the leading customer-centric Microsoft channel partners
Reseller News launches new-look Awards at 2018 Judges’ Lunch

Reseller News launches new-look Awards at 2018 Judges’ Lunch

Introducing the Reseller News Innovation Awards, launched to the channel at the 2018 Judges’ Lunch in Auckland. With more than 70 judges now part of the voting panel, the new-look awards will reflect the changing dynamics of the channel, recognising excellence across customer value and innovation - spanning start-ups, partners, distributors and vendors.

Reseller News launches new-look Awards at 2018 Judges’ Lunch
Show Comments