Trends in the 2nd half: more products and consumption acceleration
With the new technologies, the distribution market expands the offer of customized solutions and invests in logistical operations.
by Adriano Camargo
In recent years, distributors have been focusing on the retail sector, recognizing its growth potential and opportunities. “There is heated demand for connectivity, cybersecurity, and cloud computing, in addition to the use of AI and the IoT universe. Companies understood the strategic value of these areas and are investing more and more”, says Mariano Gordinho, executive president of the Brazilian Association of Information Technology Distribution (Abradisti).
Among the main factors that drove changes in the distribution market is the rapid growth of online commerce, says Felipe Piva, director of operations at Allied Brasil. “The expansion of e-commerce has led companies to invest more in online sales channels and in improvements in logistics and the supply chain.”
Changes in consumption patterns and demands for greater efficiency and sustainability gain importance. “Distributors are adapting, adopting new technologies and improving their logistics operations, seeking to offer more flexible solutions to meet customer needs. Those who manage to successfully adapt to this new scenario will have a significant competitive advantage”, says Felipe Almeida, commercial director at HPrime.
Evolution
The fact is that the distribution market has undergone a great evolution during the pandemic and, also, for greater professionalization, comments Paulo Fernandes, commercial director at Agis. “The best prepared and structured distributors grew even more and increased their relevance in the market.”
Specialization is a good path, in the opinion of Antonio Nuno Verças, CEO at Aldo Solar. “We believe that only specialization is capable of sustaining market development, combining technical and business knowledge, in addition to all the necessary resources to support manufacturers, industry integrators and end customers.”
The sector, this year, should have moderate growth, close to two digits, due to the uncertainties in the national and international scenarios, says the president of Abradisti. “In the medium term, as markets manage to understand and price the uncertainties, the ICT segment should gain vitality, thus resuming double-digit growth.”
Challenges
High interest rates, defaults, and the lack of availability of some products are challenges for the segment. “One of the biggest problems in the consumer electronics sector is the high competitiveness and short life cycles of a product. It is a challenge to manage inventories, avoid product obsolescence and quickly adapt to market changes”, explains Hicham A. Hamze, director at Summerland.
The high tax burden, the availability of credit and the tax complexity in Brazil are other difficulties, but this does not discourage distributors. “Even against the grain of the national economy, which has been suffering from a lack of credit, we are optimistic. We even increased the granting of lines of credit to small and medium-sized entrepreneurs”, says Dvair Borges, commercial director at the Fujioka group.
In sales to the final consumer, there is a narrowing, like a funnel, due to the increase in defaults. “Today, we are focusing on the growing e-commerce market. Margins have fallen a lot in the last year, everything becomes a commodity very quickly in Brazil, but we always try to balance this account with items of greater profitability and lower turnover”, says Antônio Carvalho Júnior, commercial director at Bright.
The trend is for an improvement in the availability of products for the 2nd half of 2023 and an acceleration of consumption due to better economic conditions.
Source: Revista Eletrolar News – Edição #155