Frost & Sullivan: Distribution Channel Essential for the Growth of the European Security Market

LONDON - The economic downturn will reduce security spending across Europe. However, continuous improvements in technology will sustain the need for informed and proactive channel partners in the security arena.

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New analysis from Frost & Sullivan (www.autoid.frost.com), Distribution Channel Analysis for European Security Systems, finds that companies able to offer comprehensive solutions backed by value-added services will make strong gains.

“A wide range of security markets are registering growth,” notes Frost & Sullivan Industry Analyst Matia Grossi. “This is triggering the need for a wide and in-depth network of distributors, systems integrators and resellers.”

The trend towards IP-based security products has introduced the market to IT system distributors and integrators, such as Anixter, IBM, HP, and others. These distributors and integrators are in a better position to understand technological changes and provide a high level of service to customers. Intensifying competition between security and IT channels has reduced the box mover attitude among traditional channel distributors. Traditional distributors are making a conscious effort to provide IP products and services and are trying to match the service level of participants from the IT channel.

The current economic downturn is expected to curb security investments in many vertical markets. This trend will result in reduced sales for the distribution channel partners as well.

“Over-dilution of the distribution channel also leads to reduced margins,” cautions Grossi. “Numerous products, applications, value-added services and market participants are crowding the market, making it difficult to maintain high margins.”

Distribution channel partners need to constantly redefine their product portfolios and value-added services. Introducing more IP-based products, offering complete solutions and ensuring excellent service hold the key to survival and success in this market.

If you are interested in a virtual brochure, which provides a brief synopsis of the research and a table of contents, please send an e-mail to Joanna Lewandowska, Corporate Communications, at joanna.lewandowska@frost.com, with your full name, company name, title, telephone number, company e-mail address, company website, city, state and country. Upon receipt of the above information, a brief brochure will be sent to you by e-mail.

Distribution Channel Analysis for European Security Systems is part of the Automatic Identification & Security Growth Partnership Services programme, which also includes research in the following markets: Opportunities in the European Access Control Equipment Markets, Electronic Physical Security in Banking and Finance, Electronic Physical Security in Retail, European Security Services Market and, European Intrusion Detection System Market. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

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GIL 2009: Europe

Frost & Sullivan has expanded its flagship Global Congress on Corporate Growth - GIL Global - into several major cities around the world including London. For the first time ever in Europe, Frost & Sullivan will be hosting the Growth, Innovation and Leadership Congress ‘GIL 2009: Europe’ on 19-20 May, at the Sofitel St James in London. GIL Global is the industry’s only event designed to support senior executives in their efforts to achieve sustainable, top-line growth. To register, obtain a programme agenda, explore sponsorship opportunities, or attend as a member of the media for GIL 2009: Europe, please contact Joanna Lewandowska, Corporate Communications for Frost & Sullivan in Europe, at Joanna.lewandowska@frost.com. One-on-One interviews with Frost & Sullivan senior growth consultants are also being scheduled. For more information you can also visit www.frost.com/gilglobal.

Distribution Channel Analysis for European Security Systems M37D-11 Contact: Joanna Lewandowska Corporate Communications - Europe P: +48-22-390-41-46 E: joanna.lewandowska@frost.com www.frost.com

Source: Frost & Sullivan

Joanna Lewandowska, Corporate Communications - Europe of Frost & Sullivan, +48-22-390-41-46, joanna.lewandowska at frost.com / Logo: https://www.newscom.com/cgi-bin/prnh/20081117/FSLOGO