NETWORKING products maker Netgear has appointed Ingram Micro as its second local distributor, filling a gap left by the exit of Express Data over six months ago.
The vendor has appointed Ingram Micro to take advantage of the brand’s expanding product range and growing sales, New Zealand manager James Caldwell says. Ingram Micro “will open up opportunities” in the OEM and education sectors.
But Express Data sales manager Paul Plester says the lower-priced end of the networking market is congested and the new appointment reminds him of when his company gave up its distributorship in September last year.
“Netgear bought in Tech Pacific for retail,” Plester says. “We didn’t think the market was big enough. So we said if it doesn’t work, we’ll opt out. This whole end of the networking market is congested. Good luck to them.”
Competing brands include Dlink, Snappernet, Cnet and Allied Telesyn.
But Caldwell says the brand has had two distributors here since 1999 and the market warrants a dual model. “There is a large degree of overlap [between the two distributors] ... But we have customers who want choice that are being forced to buy from Tech Pacific. But this is not a negative reaction on Tech Pacific. We’re seeing plenty of growth.”
Tech Pacific boss Tony Butler says Netgear is an established brand that can sustain two distributors.
Ingram Micro has only one other networking brand, 3Com, and this was one of the considerations for awarding it the agency, which started April 1.