The leading business channel on the Russian IT market – @ASTERA (www.astera.ru) – presents the results of its 5th annual “Best Distributors” survey.
Being a part of the “Rating of IT Companies” project, the survey was carried out during the period from October 1 to December 31 in 2008. The main idea of the “Best Distributors” survey was to find out the positions of distributor companies on the Russian IT market, according to Russian IT Resellers opinions.
This time during the survey 158 distributor companies were assessed. Traditionally, twenty top companies were included in the “Best Distributors” rating according to the survey’s results. The most frequently mentioned companies were also announced.
It fortuned that the “Best Distributors 2008” survey was conducted during the period when the global financial crisis had begun to affect Russia and seriously correct all spheres of Russian economics.
The country’s IT sector suffered as well. At that time all participants of Russian IT market were faced with considerable troubles. It was obvious that the companies had got in trap of loans that always were a part of usual distributor business practice. So Russian distributors were in trouble at that moment.
To make matters worse, in 2008 some distributor companies couldn’t return debts from their partners as the latter ones had no possibility to rid themselves of their own debts in time. Moreover, some of distributors’ partners found themselves on the verge of default. Great debtors meant great problems to distributor companies. For instance, Neotorg couldn’t meet its engagement – to pay 20-30 million dollars debt.
Meanwhile, in 2008 the distributor companies began to reduce the amount of new orders and tried to cancel some of the products ordered in advance in anticipation of recession in demand. As a result, there occurred a shortage of some product positions in the fourth quarter of 2008 that ended by resellers’ dissatisfaction caused by lack of needed items and necessity to look for them in other places.
Time showed that the distributor companies had been right – there was a great recession in demand in the fourth quarter. Some companies goods turnovers decreased to 50%. Consequently, there were lots of cases of goods glut on the market that lowered companies’ profits and led to losses.
At the same time reducing of profit led to internal restructuring and optimization of spending. Some distributor companies were forced to cut business lines, salaries and staff that as a consequence reflected badly on the quality of services offered to resellers.
In 2008 that situation caused concern, because long-term partnership between resellers and distributor companies could be destroyed. As a consequence, it also could lead to considerable changes in the rating of best distributors.
The proverb says: “A friend in need is a friend indeed”. The hardships that distributor companies had been suffering as a result bared them and made their positive and negative qualities look more evident. In this connection a value of the “Best Distributors” rating should be raised a lot since it was based on Russian resellers’ opinions that had been voiced in time of economic troubles.
Nevertheless, despite dramatic changes on the market in 2008 the most participants of the previous rating managed to keep their positions or even improve them this time.
Compared to the previous year there were seven new names in the top list of best distributors this time – AK-Cent, Fan, MICS, CPS, AXOFT, Pirit and 3Logic. Pirit managed to return lost in 2007 position. Except that year the distributor always was itself among the best companies. It’s worth to mention that in 2008 Pirit contributed a lot in development of the market with its initiative against goods raid which has become a scourge of Russian business. Such Pirit’s activity has earned the company a great reputation among resellers and also its workmates – other distributor companies.
Success of such companies as AK-Cent and Fun in the rating should be noted. For example, AK-Cent returned in the top list in 2008, last time it was in 2004 when it’d taken 13th place. Moreover, in 2008 the company had been the leader of the intermediate ratings several times. Fan also had appeared in the threesome of top list leaders several times according to intermediate results. Eventually, AK-Cent took 2nd place in the top list whereas Fan got the 4th one. That was a doubtless achievement for both of the distributor companies.
LANIT and Lanck were also in the first quinary of the top list. Compared to 2007 LANIT improved its position having gained six points while Lank moved up from 6th to 5th place.
A company Marvel that had successfully started the year with a business growth rate exceeding 60% in the first half of 2008 then improved its financial results and strengthened its leadership position in the “The Best Distributors” rating. The year before Marvel had been on 10th place but now it occupied the seventh position in the top list.
MONT, Landata, ELKO Group и NetLab also managed to get in the top list of ten best distributors. MONT and Landata considerably improved their results in 2008. Whereas MONT jumped from 14th to 6th position, Landata took 8th place having gained seven points.
There were four companies in 2008 – AK-Cent, Lanck, MONT and OCS – that were really close to the leader position in the top list. But, finally, the position was taken by OCS. Thus the company confirmed its leader status for the fifth time.
Of course, the first place in top list is usually an excellent result. But, what is more important, all twenty companies represented in the “Best Distributors” rating are used to be the best ones among hundreds of distributors working on Russian IT market. It’s worth to mention that despite the effects of weakened Russian economy most IT distributor companies managed to satisfy resellers expectations and keep their relationships unharmed in 2008. That is a secret that helped these companies to stay among the best ones.
In the “Most Frequently Mentioned Companies” rating the largest distributors traditionally occupied the top positions. Like a year ago, Merlion took 1st place. OCS and Marvel were behind it on 2nd and 3rd places correspondingly. LANIT took 4th place and Verysell was on 5th one. Also there were some new distributor companies in the rating – Depo Computers, MICS, Lanck, RRC and Pirit.
More information about the “Best Distributors 2008” on the Russian IT market: http://www.astera.ru/it-rating/bestdistributors/2008/ (available on Russian).
Contact
Zoya Stafienko
Assistant Director
[email protected]
www.estimedia.ru
Additional information
Rating formation
The initial list of applicants included 131 companies. It was based on the results of surveys “Best Distributors 2007”, “Rating of IT brands”, “Rating of IT companies in Russia in 2007” and also contained the companies that had applied for the participation before the survey starting. The participants of the “Best Distributors” survey could also add the companies that weren’t represented in the initial list. So the final list of applicants included 158 distributor companies.
The results of the survey were presented in the form of two ratings: “The Best Distributors. Top20” and “Most Frequently Mentioned Companies. Top20”.
The “Best Distributors” rating was based on the average value obtained at the survey conducted among the representatives of Russian IT companies. Each participant could assess the activity of any distributor company within the range from 1 to 10. The number of mentions determined the place of the company in the “Most Frequently Mentioned Companies” rating.
The survey was carried out only within the registered on the @ASTERA channel representatives of IT companies. Thus such factors as anonymity and professional incompetence of the participants were completely excluded. All answers were processed individually. The survey’s findings were based on professional opinions and the possibility of invalid data was excluded. So there was no place to overrating or underrating of some companies results by the participants.
Thus, the results of “Best Distributors” rating were supposed to give a professional assessment of companies’ work with resellers while the data of “Most Frequently Mentioned Companies” rating – display the range of its sales.
About @ASTERA
The @ASTERA Business Information Channel is the leader in providing business information for professional participants of the Russian market of information technologies and telecommunications.
Daily Channel @ ASTERA provides the latest information about people and business, technologies and companies, events, products and services, prices and deliveries. Monthly www.astera.ru is visited by more than 150 000 users.
Since 2003, the channel @ ASTERA conducts a regular work aimed at research of the structure of the Russian IT market. The research results are published in the form of Reports: «Rating of IT companies in Russia», «Best Distributors», «The best vendors», «Rating of IT brands».
website: www.astera.ru
e-mail: [email protected]