Brazilian distribution sector employs 9,900
by Stuart Wilson, Wednesday 4 July 2012
Brazilian IT distributor association Abradisti’s latest research indicates that the country’s distribution sector employs 9,900 IT professionals. The Brazilian IT distribution channel witnessed 7.6% sales growth in 2011 as the overall market continued to grow. Despite this top line growth, Abradisti’s research indicated that the number of employees involved in distribution fell by 4% as the channel adjusted its operating costs to cope with declining margins.
The Abradisti survey polled 86 companies representing 95% of the distribution sector in Brazil to produce its results. Respondents included major distributors such as Agis, Aldo, Alcatéia, Avnet, Ingram Micro and Officer.
Abradisti has also conducted research regarding the size and scale of the reseller channel in Brazil, concluding that there were more than 31,000 resellers of IT products operating in the county in 2011. Together these companies recorded sales of approximately US$18.5 billion.
The number of resellers had increased from 29,500 recorded a year earlier. According to Abradisti, two thirds of resellers were based in the South-East of Brazil, with 14% in the North-East and 12% in the South. Only 4% of resellers were based in the mid-West of Brazil and just 2% in the North.
In total, the 31,000 resellers employs some 158,000 staff, but there were a significant proportion of small or one person operations in existence, according to Abradisti. The research showed that 83% of resellers employed ten or less employees.
During 2011, Abradisti also claims that the Brazilian channel benefited from a decline in the percentage of products illegally imported into the country. The percentage of notebooks illegally imported into Brazil fell from 23% to 5% in 2011, while projectors fell from 48% to 8%. In contrast, the percentage of tablet devices that were imported illegally rose from 5% to 27%, according to Abradisti’s figures.
Mariano Gordinho, president at Abradisti, explained: "The illegal market is focusing on products that have better margins such as handbags, sunglasses and perfume. Within the area of IT and electronics, we have seen the illegal import of smartphones, tablets and console games. This trend tends to reduce when local production of these products begins."
Abradisti claims that 90% of all illegal IT and electronics products entering Brazil arrive directly from Paraguay.
DISTREE Latin America
The 2nd annual DISTREE Latin America takes place on September 11-13th 2012 in Buenos Aires, Argentina. DISTREE Events expanded into the Latin American market in 2011, driven by demand from ICT and consumer electronics (CE) vendors for a regional channel development platform. DISTREE Latin America offers easy access to major buyers from across this vast region in one place at one time. www.distree-latam.com
DISTREE Latin America offers vendors a powerful and cost-effective platform to meet senior executives from major distributors and retailers from across this vast continent, accelerating channel development for all attendees. Follow DISTREE Latin America updates on Twitter www.twitter.com/DISTREE_LatAm
Vendors, distributors and resellers interested in attending DISTREE Latin America should contact firstname.lastname@example.org quoting code DLA12.