pressure rising in German channel
Things are getting tense in Germany’s IT channel. The credit
crisis has created uncertainty in the market, and distributors
have been making all the headlines with new methods to
tackle a spiralling need for efficiency. Logistics, convergence
and some seriously aggressive pricing are all on the agenda
as the channel works out how to make its money…
fter a tough few years earlier in the decade, expectations were high So how is the
A
that 2007 could continue the German IT sector’s recovery. Although current credit
annual growth rates reached 3-4%, there is a sense that things could situation in
have gone better. And thanks to an awkwardly-placed Easter holiday, 2008 Germany? Most
hasn’t got off to a great start either. people seem
“In 2007 the market did see a low single-digit increase, but there has been to agree that
pic: Will palmer
a big slowdown in March which is more due to the set up of Easter this year. Germany has
So in Q1 there has been no growth. We hope an improvement in Q2 but no greater credit problem than other countries in western Europe. It has been
historically May and June are not busy months. There has been an overall quite difficult to fully gauge the situation until recently - German companies
slowdown in the channels, many execs take holiday around this time. And Euro have a poor record when it comes to filing financial information, though a
2008 [football tournament] may also have an impact,” says Michael Dressen, recently-introduced €25,000 fine has seen prompter reporting.
MD at distributor ALSO Germany. “There is a culture of prompt payment in Germany and shorter terms
Gerard Schulz, country manager of Ingram Micro’s German business, agrees applied and accepted means DSO (days sales outstanding) is low,” says Bell
that Q1 has been “slow”, although he does see some “moderate” growth in the Micro’s credit manager Eddie Pacey. “Germany is considered a good performer
market. Gerd Hundt, general manager at Avnet Technology Solutions Germany, in settlement of debt therefore and almost on a par with Sweden where
says the market is “certainly slowing down, but Germany has not been as clients pay on time, frequently unprompted. Relationships as ever are key
affected [by the economic climate] as the US has.” and we have worked extremely closely with some of our clients in Germany
But Tech Data regional manager for Benelux, Germany and Austria, Els and have benefited enormously from them in managing special projects and
Demeester, reckons the market has been holding up “pretty well” and she extended credit.”
is relatively unconcerned by the developing credit situation: “There is no Growth has come in typical areas for a mature market: the mobility sector,
reason to believe that the situation will be in worse in Germany. After such particularly notebooks, has seen rising sales. There is also good growth for
a depression in the market between 2001 and 2006 the industry is in a much high-end technology areas like security and virtualisation. The areas of decline
stronger position if a recession would come.” provide few surprises: sales for desktops and desktop peripherals, such as
22 18 apr 2008
It0807 - 22-25_GERMANY_SME.indd 22 2008-04-16 11:02
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