What now for distribution?

Even the number of resellers will decline. I expect those with direct reach to the end-user to remain, but traders could be in trouble. By the end of the year, however, the market will be healthier and cleaner.

Distributors should work together to make this happen because if they continue supporting trading, and some of the others things that are happening in front of us everyday, they risk destroying the market.

Faisal Jamal, Despec MERA

You may see a change in strategy from companies that were taking added risk by selling at very low margins to gain market share and revenue because that will be unsustainable this year.

Interest rates have gone up to 8.5% or 9% from 4.5% or 5.5% so you are talking about a 100% increase in the cost of borrowing — companies are going to have to be a lot more careful.

Companies need to look at their business at a very micro level and assess which brands are making them money, which customers are paying on time, and what is the added value of doing business with them. Those that can analyse their work properly will do well.

Amer Khreino, Emitac Distribution

I personally believe there is too much panic and fear in the market, and if there is one enemy to business it is uncertainty. If you know how much your business will be impacted then it is very easy to manage the situation. Alternatively, if you don’t know, it can be very difficult to manage.

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