REGIONAL CHANNELS
K
enya-based Mitsumi
Distribution, that manages
both volume and value
supply chain distribution, has been
performing with stable and growth
operations despite the challenging
regional market circumstances.
Mitesh Shah, Managing Director
of Mitsumi Distribution, points out
that this is because of its business
model. “We have always been a micro
distribution company and have never
relied on any sub-distribution model.”
Mitsumi Distribution works on
the model of keeping in-country
stocks and manpower wherever it
operates. This includes Tanzania,
Uganda, Rwanda, Ethiopia, Ghana,
Nigeria, Cameron, Algeria, UAE,
Qatar, Kuwait and Kenya as
well. By having sufficient scale of
operations in multiple countries
for its multiple vendor partners,
Mitsumi Distribution is able to
better manage its cost of operations
in comparison to other distributors
and maintain its profitability.
By being present in multiple countries
it can also better manage local credit, risk
and compliance issues ahead of other
distributors, with smaller operations.
“One of the reasons we are stable
and are able to grow despite challenging
market circumstances is thanks to our
business model. We have in-country
stocking and manpower in all the
countries we are present in, which helps
us to cater to the market more effectively.
This has enabled us to have better margins
when compared to other distributors.
Moreover, we understand consumer
demands and credit systems in the
market,” explains Shah.
Mitsumi Distribution maintains state-of-
the-art warehouses in 12 countries as well
as well-equipped service centers across the
African continent. Every year by virtue of its
operations it is increasing and consolidating
its position across the African continent.
Partner enablement
Mitsumi Distribution continuously
enhances its market presence by working
with them for authorised channel
business. We consistently run
anti-piracy campaigns that creates
awareness amongst the channel
community to buy genuine products.
We plan to hold blitz campaigns to
educate resellers on the huge risks in
dealing in grey and how to mitigate
this challenge,” says Shah.
Mitsumi Distribution has also
been expanding out of Africa
into the Middle East, and from
Middle East into Africa, leveraging
its primary vendor partner
relationships including HP Inc and
Dell EMC. Mitsumi Distribution
was recently awarded selling rights
into Middle East for HP Supplies
and Dell Consumer products. It
was also awarded selling rights
for Dell EMC Enterprise solutions
into Africa. To better manage its
Middle East operations, Mitsumi
Distribution recently opened new
offices in Kuwait and Qatar.
hand-in-hand with its channel partners.
Mitsumi Distribution resells its volume
and value products and solutions through
value added resellers selling to the
business and commercial sectors. Mitsumi
Distribution supports channel growth
and development through periodic and
frequent partner meetings, briefings,
promotional schemes and incentives and
accredited training programmes.
Also, part of the channel enablement
activities is invited visits by product and
solution experts from vendors for special
events, with the presence of leading
channel partners. Mitsumi Distribution
also provides various other types of
marketing and technical support for its
channel partners.
Mitsumi Distribution regularly
conducts road shows and events for its
channel partners across Africa. One
such recent road show initiative was to
sensitise channel partners about the need
to trade in genuine and original products,
produced and shipped by the vendor
manufacturer. “Mitsumi encourages and
invites all resellers across Africa to partner
Business drivers
For Mitsumi Distribution, demand for
PC hardware, mobile consumer, and
commercial business were the main
drivers of its revenue growth. “We
also saw growth in the UAE and GCC
countries across Dell Consumer and HP
consumables business,” says Shah.
Even with its present operations,
Mitsumi Distribution offers significant
credit and logistics service support for
its reseller partners in Africa. This is
reflected in the growth of its channel
spread. In addition, various sales
incentive schemes run throughout the
year in partnership with vendors to
encourage sales growth and bring vendors
and dealers closer together.
Moving forward, in order to
systematically support its all-round
growth, Mitsumi Distribution is investing
in best of breed solutions in logistics,
in-country services, tele-sales, field sales,
channel marketing, end user pull, finance
and credit, and geographical presence.
“We are investing in all functions and
intend to be best in class,” he adds.
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