Direct sales fall in UK - PC Retail

Direct sales fall in UK

Year-on-year direct shipments decline by six per cent
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Direct to consumer PC sales in the UK IT market declined to 18 per cent, compared to 24 per cent last year.

According to Microscope, one reason is the prevalence of Asian manufacturers selling exclusively through partners, however another reason is the decline in enterprise spending, which usually account for the majority of direct sales.

“Corporate enterprise suffered the most and that is where the biggest proportion of direct sales are transacted,” said IDC research director Ezster Morvay.

Although some vendors anticipate a renewal in corporate spending later this year, Canalys CEO Steve Brazier warned of a long term decline in this sector.

“The margins are getting slimmer and slimmer, as soon as a vendor is involved they have high costs of labour, have to provide company cars, health insurance and generally better salaries and career paths,” Brzier told Microscope. “It will be harder and harder to justify those kinds of people in a lower margin business.”

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