KMS Components has said that it want to increase the percentage that consumer electronics contribute to the company to 50 per cent, up from its current five per cent.As part of its move, it recently signed a deal with Elonex to distribute its consumer electronics products.
The company blamed small margins in the PC component sector for its decision. Speaking to CRN's Nick Booth, KMS' sales manager, Steve Bland said: "Focusing on consumer electronics products means we can give customers a larger range from which to buy and more chance of double-figure margins.
"When big companies slash prices everybody is forced to make a tiny profit margin," added Bland. "Elonex picks products that stand out, so there is a margin opportunity not just for us but for our resellers."
"A significant number of [reseller] customers see the benefits of even the small range of consumer products we have introduced," he added.
Bland also described retail's reaction as positive, especially when it came to giving retailers the chance to re-badge products and sell them under their own brand. "It has already proved very successful with large retail chains," he said.
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