Vendors need to oil the resellers aching joints

Steve Brazier, the top analyst at Canalys gave his views on the future of the channel in the European market right now in the European forum held in rainy Barcelona today. And apparently there are more storms on the way.

And as well as giving his predictions on the way things are going, he turned his attention on the top six vendors and the way they were disappointing distributors and resellers.

In a wide-ranging keynote, Brazier said that the trade war between China and the USA introduced uncertainties into the market and no-one can predict the shape of things to come. It could be that we see large shifts in manufacturing and companies like Samsung that manufacture in Vietnam rather than China could reap huge benefits from not facing heavy tariffs.

He said that partners make most of their money from the top six and it’s all down to a question of margins. The channel and the vendors, he said, had introduced friction into the border between direct selling and through partners.

He said that there’s more friction between vendors and the channel. The vendors demand loyalty from their channel while the channel wants vendors to stop selling directly. There’s a danger that vendors are not being open about the data they get from their “partners”.

“We’re expecting some tough questions in the private sessions.”