Exclusive: Under the Simms bonnet

The Channel recently spoke to Simms NZ Managing Director Paul Johnston who talked us through how the company plans to operate in New Zealand.

Many channel partners and competitors are keen to understand how the new distributor Simms will operate in NZ. Last week Johnston (pictured) told The Channel that there had so far been little negativity from Simms and Dell's move into the local market.

Following on from that you’ll find a summary of how the distributor plans to operate its New Zealand business below:

Ownership:

• 25% - Paul Johnston (previous CEO of Renaissance)
• 75% - Simms International Pty Ltd (subsidiary of UK parent)

Brands distributed:

• Dell (all products with a particular focus on SMB related ranges)
• Motion (Specialised tablets for vertical markets like health)
• Kingston (all memory products as part of a global arrangement)
• Tucano (a brand of laptop bags)
• A number of additional brands are on their way, including a small laptop accessory brand due imminently.

Dealer base:

• An initial goal of recruiting 60 committed channel partners focused on the SMB audience.
• No current plans to recruit larger system integrators or mass retailers.
• Tier One accounts continue to buy directly from Dell.

Method operandi:

• Initially set up as a custom fit distributor for Dell, with brands like Kingston supporting this.
• Traditional gross margin focused business model, with category exclusivity granted to Vendors being represented.
• Fulfilment is outsourced to Online Distribution in Airport Oaks, Auckland on a two-year contract.

If you have other questions you would like us to put to the local Simms team let us know in the comments below.