Peripheral vision

"Now we're also starting to introduce the business-to-business line, but that is going to go through a specific corporate reseller channel," revealed Ettinger. "To sell to corporate accounts really is a completely different ball game - you have to be in touch with corporate resellers, they have the expertise to cover the specific markets. These products are not just the same as the retail products we offer, they're often multiple units per package and also very attractively priced, because large banks, governments and corporate accounts want to have products that are found in the stores but at a completely different price level," he said.

In more mature markets, retailers have adapted their channel strategies to harness a stronger partnership with peripherals vendors. Retail stores in Europe and the US have transformed considerably over the past few years in an effort to engage directly with vendors. Hard drive specialist LaCie is hoping the Middle East eventually mimics the behaviour of retailers in these markets, but concedes there is some way to go before that vision becomes a reality.

"Most of the retailers, whether they're organised retail hypermarkets or traditional retail outlets such as those on Khalid Bin Al Waleed Road, are still not ready to do direct business with vendors," admitted Rajeev Mukul, VP sales Asia and Middle East. "So for the time being we will be serving these retailers through distributors. But we will be very closely in touch with retailers, and our distributors will really act as stock fulfillment agents," he added.

Van Rensburg reckons retailers in the region aren't short of enthusiasm when it comes to developing direct relationships but confesses that steps need to be taken on both fronts before the vendor can enjoy such a relationship in the Middle East. "Retailers are saying to us that they want a direct relationship with Belkin, because they look at retailers in Europe and want that same direct agreement," he said. "Some of them believe that they are big players and want the same relationship. But we cannot do that, sometimes because their infrastructure cannot manage that, and our infrastructure in the region is set up so we can't manage that. But in the future there are possibilities - we may go that way depending on how the market develops."

LaCie hopes its recent announcement to set up local operations in the Middle East may spur retailers in the region to make the necessary moves to engage in such a manner with the vendor, and revealed it already has one partner in the region with whom it enjoys such a rapport. "We are stocking goods in Dubai and I think some of the large retailers may align their own strategy to do direct business with us because they won't have to carry too much of our stock, they can take it from us on a daily basis," said Mukul. "In Saudi we are working with Jarir Bookstore, which buys directly from us and sells through its own stores. We will also evaluate this kind of option in Dubai. In the mid to long term, most large retailers may get aligned to do direct business with vendors," he added.

For retailers to attain a high attachment rate - to see consumers leaving the store with a bundle of accessories along with the purchase of any PC or notebook - vendors and retailers concur that the onus is on the retailer's sales staff. Electronics retailer Switch claims it invests heavily in the training of sales staff, claiming its personnel's skills can be the key differentiator in the sale of peripherals. "Customer loyalty is often not very strong in this market, and the decision that a consumer makes is largely based on the salesman's recommendation and what proportion of shelf space the brand is occupying," claims general manager Rahul Mistra.

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