Distributors did rather well last year and it is predicted that the momentum will keep going this year, according to beancounters at Context.
The analyst house noted that week three of 2021 saw distribution bringing in revenues of €1.8 billion for the second week in a row.
Last week, Context forecast that the channel would enjoy year-on-year growth of between six to 12 percent this quarter. The firm has charted some concerns about shortages, but overall the sense of optimism across the distribution channel has continued to be high as the first few weeks of 2021 have progressed.
The UK has been a bit more sluggish, although marginally behind the position it was in back in the first few weeks of 2019. The government’s move to get more laptops into the hands of schools has driven down prices, which has had a hit on revenues, given that is the most in-demand technology at the moment.
In the mobile category, the top form factor was tablets, with year-on-year growth of more than 80 percent. Notebooks were up by 70 percent and monitors were at the same level increase, as more people reached out for technology to support home working and learning.
Other segments in which the channel should have noticed demand remaining high include software, audio-visual systems, warranties and telecoms.
Context global MD Adam Simon said Europe’s distributors continue to get the year off to a flying start, with the kind of revenue figures we’d expect in weeks seven or eight rather than at this point in the first quarter.
“Homeworking categories like notebooks and tablets are driving unprecedented growth this early in a new year, but we’re also seeing the impact of supply shortages pushing average purchase prices up in some categories”, he said.
Context recently released figures covering the performance of distribution over the fourth quarter of 2020, with European distribution sales hitting a record €26.3 billion, with year-on-year growth of 10.2 percent.
“We knew that growth was more likely to go up than down in Q4, but we never anticipated such an impressive fourth quarter. Our predictions were consistently beaten by the channel in 2020.”
