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The supply and distribution structure of Datagate Bilgisayar A.Ş. is shown as follows:
1.Structure of Product Supply and Distribution:
With providing spare computer components to local computer producers in IT Sector, it added new products to its product portfolio considering changes in product structure (mobility), market entrance model and end user market. It sells and distributes the products as displayed in below chart. It buys IT products from suppliers at certain prices and maturity periods and subsequently sells the products to the sales channels that will sell them to the end user. The company does not plan to develop a sales structure that will include direct sales to the end user in the near future.
2.Suppliers:
The hardware and software suppliers of the company are grouped into two categories.
• Global brands that operate in Turkey: ((Intel, Seagate, Maxtor, MSI, Sapphire, Fujitsu Siemens, Acer, Belkin, Genius, Samsung,Vestel,Gigabyte): As this is the nature of the business, these global companies prefer working with distributors which are less in numbers instead of handling distribution,
• Global brands that do not operate in Turkey: (Veritech, Transcend, Alps, GKB) These companies have not set up offices in Turkey yet. However, these companies conduct their imports, sales and marketing activities through the dealership of distributors
3. Distribution Channel:
As a distribution company, Datagate buys the products from suppliers. Furthermore, it resells them to the sales channels which sell to the end user. The structure of distribution channels which Datagate sells to and which sell IT products to the end user in Turkey is summarised below:
3.1. Domestic PC Vendors
This is the major customer group of Datagate. These customers can be categorised in two groups.
a) Big Local Producers (Big Local Brands):
In Turkey, they have produced desktop, laptop and server for long years. In particular, these brands achieved well growth in numbers of production and sales furthermore, they took international brands’ places. These are, Casper, Exper, Arçelik, Vestel, Escort, Aidata, Pro 2000. These brands are produced in Marmara Region except Vestel.
b) Small Local Producers (Small Local Brands):
In terms of quantity, there are numbers of 10 producers in this category and these produce and sell less than 20.000 numbers of computers. Majority of these are located in Marmara Region and others located in Anatolian Area.
3.2. Distributors and Importers
The Distributors that do not have the products in their product portfolio, usually buy these products to sell them to the sales channels. These distributors have huge distribution channel and large organizations in Turkey.
3.3. Regional Sub Wholesaler
Regional Sub Wholesalers sell all computer products in the area they specified by building sub dealers system. These companies usually buy the products from the distributors in Turkey. They do not import any products. According to sales target specified by the distributors, they try to reach the target and have sales bonus.
3.4. Regular Dealers (Classic):
These are pretty small companies with a staff of 5 to 25. They do not have their own unique solutions. Their target is SMEs and the home market. They number at least 4.000 to 5.000 and are the biggest group in the IT industry.
These companies carry out their operations fully with distributor company resources. Their sales are more directed towards OEM products and peripherals than branded products.
3.5. Retail Channel
In the recent years, Retail Chains diversified and reached huge transaction volume with the reason of investments made by local chains shops and the investment also made by international chains in this category. Furthermore, Food Chain Shops and Dowry Shops increased their business volume. Majority of home market needs is provided by above mentioned chain shops in Turkey. For Datagate, there are 3 types of retail groups:
a) Retail Chains:
The retail chains are big groups having more than one store under the same brand such as Teknosa, Bimeks, Vatan, Gold, Media Markt , Darty, Electro world, Best Buy Teknolojiks, NT, Yalçınlar, Evkur, Metro, Migros, Real, Carrefour, Tesco/ Kipa. The main function of some groups of this category is computer, while some of them such food markets and dowry shops are chains dealing with computer as a secondary business.
b) Regular Computer Stores (Classic):
These stores are small companies where the owner of the store and a few sales representatives work and they operate with limited resources. They are totally focused on computers.
c) E-Retail:
This channel is based on virtual markets which open virtual stores and operate in the internet medium. Due to the widespread usage of the internet in the recent years, the number of the companies operating in this channel is increasingly growing. The companies such as Hepsiburada, e-store are the examples of this type of channel.
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