New analysis from Frost & Sullivan (autoid.frost.com), Distribution Channel Analysis for European Security Systems, finds that companies able to offer comprehensive solutions backed by value-added services will make strong gains.
"A wide range of security markets are registering growth," notes Frost & Sullivan Industry Analyst Matia Grossi. "This is triggering the need for a wide and in-depth network of distributors, systems integrators and resellers."
The trend towards IP-based security products has introduced the market to IT system distributors and integrators, such as Anixter, IBM, HP, and others. These distributors and integrators are in a better position to understand technological changes and provide a high level of service to customers. Intensifying competition between security and IT channels has reduced the box mover attitude among traditional channel distributors. Traditional distributors are making a conscious effort to provide IP products and services and are trying to match the service level of participants from the IT channel.
The current economic downturn is expected to curb security investments in many vertical markets. This trend will result in reduced sales for the distribution channel partners as well.
"Over-dilution of the distribution channel also leads to reduced margins," cautions Grossi. "Numerous products, applications, value-added services and market participants are crowding the market, making it difficult to maintain high margins."
Distribution channel partners need to constantly redefine their product portfolios and value-added services. Introducing more IP-based products, offering complete solutions and ensuring excellent service hold the key to survival and success in this market.
If you are interested in a virtual brochure, which provides a brief synopsis of the research and a table of contents, please send an email to Joanna Lewandowska, Corporate Communications, at joanna.lewandowska[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country. Upon receipt of the above information, a brief brochure will be sent to you by email.
Distribution Channel Analysis for European Security Systems is part of the Automatic Identification & Security Growth Partnership Services programme, which also includes research in the following markets: Opportunities in the European Access Control Equipment Markets, Electronic Physical Security in Banking and Finance, Electronic Physical Security in Retail, European Security Services Market and, European Intrusion Detection System Market. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.
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Distribution Channel Analysis for European Security Systems / M37D-11