Over the last two years, the company has grown by strategic acquisition and organic growth in the Asia Pacific region to be now present in Australia, Singapore, Malaysia, India, Thailand and China.  Two years ago, Avnet acquired Azure Technologies in Singapore and Malaysia, which according to Philip Gallagher, Avnet Technology Solutions Global President, gave them an immediate value added distribution business in the region.  Continuing to extend its regional footprint, Avnet has also just opened an office in Thailand.  In India, they acquired Ontrack Solutions in June 2008, and in China, Avnet started organically in December 2008, establishing their HQ in Beijing where they do solutions distribution.  In addition, the company also has Integration and Systems deliver operations in Tianjin. 

Today, Avnet has a large geographical presence in the region and their focus is aimed at solutions distribution, that is, “bringing technology solutions to our business partner community that are fuelling growth in the market,” explains Gallagher. He adds, “Our strategy is to reduce the cost and accelerate time to market for our channel partners.  At Avnet we also place a great deal of importance on our people, and to that end, we are fortunate to have KP Tang as our Asia Pacific President.  In his role, KP drives the strategic function of the Asia Pacific business, and it is his goal to look at strategic M&A activity as well as expanding our global line card of suppliers in the region.”

The company’s acquisitions over the years have also benefitted them greatly. Gallagher says, “The acquisition of Azure Technologies in Singapore and Malaysia gave us an experienced team of IT professionals first and foremost.  William Chu (VP ASEAN) is a seasoned IT professional who is not only well respected in the channel but is a leader with tremendous drive and vision.  Under William’s leadership, we have grown our line card in ASEAN as well as opened an office in Thailand.  In Australia in November 2007, we acquired a company called “Channel Worx”.  This acquisition gave us our first entry into the Networking, Security and Unified Communications fields.  This was a significant acquisition as we have been able to take our Juniper and Avaya relationship from Australia and extend them into Asia Pacific i.e., we now have Avaya in ASEAN and Juniper in India.”

“In India, with our acquisition of Ontrack Solutions, we were able to enter the market with a talented team of channel professionals who are passionate about ensuring that partners get access to the latest IT solutions.  Furthermore, our Indian team will be looking at ways in which we can extend our reach across the country,” he adds.

Avnet is also very driven when it comes to pursuing its channel strategy. According to Gallagher, “Our partner strategy is one of working with channel VAR’s and extending their reach to market, while at the same time we work with our supplier partners to help create channels to market for them.  For us it is all about taking our partner to market faster and at the same time reducing their cost to market.  We also like to ‘value net’ our partners where it makes sense.  For example, we introduce an ISV and SI to help form a solution, and to help both partners deliver comprehensive and seamless solutions to their customers.”

Gallagher describes their strategy as very simple and singular. “We are here to help partners go to market faster and with less up-front investment.  Our solution offerings ensure that partners are equipped to understand and target end user customers in such a way that they become their trusted advisor.  Our full range of value added services include, logistics, marketing, sales, technical and financial offerings that are designed accelerate the success of our partners,” he states.

He also adds that the company’s focus will remain the same in FY10, sharing, “We will continue to work with partners to ensure that we add value to them at every stage of the go-to-market cycle.  We will also continue to expand our geographical presence in the region, whether it is by strategic acquisition and or organic growth.”

As it is part of the Avnet DNA to educate, enable and accelerate the success of their partners, it is no surprises then that the company is always on the lookout for partners. ‘Partners and Suppliers are the life blood of the channel, and it is the duty of Avnet to become an indispensible link in the IT supply chain,” Gallagher shares.

How has Avnet managed to ride out the current economic crunch? Again, it’s very simple, states Gallagher. “With value-based management and profitable growth as our guiding principles, Avnet is able to maintain solid financial strength and market leadership despite challenging business conditions.”

He does admit that the crisis has had its impact on the region’s channels though.  “In the Asia Pacific specifically, the economic crisis has impacted the channel, there is no escaping that.  For example, we work with our suppliers and partners to ensure that they are proactively kept up to date with the latest happenings at Avnet.  We cannot control the market, but we can control how we compete in the market, and that means continuing to add value each and every day to our partners and suppliers.’

So, how is Avnet helping its partners weather the storm? Here, the company continues to make investments in future growth opportunities that deliver value to their customers and suppliers so they can make the most of opportunities, solve business problems and accelerate their success. In the Asia Pacific region, Avnet continues to invest in solutions and solution practises.  Elaborating, Gallagher says, “We are able to leverage our global scale and scope and that means bringing programs that have been successful in other regions to Asia Pacific.  For example, Avnet has had a lot of success with our Health Path program in the US, whereby Avnet educates and enables partners about the health vertical by running end-to-end solutions programs in conjunction with partners and suppliers.  In FY10 we will be bring this and other solution programs to Asia Pacific.”

He continues, “We cannot control the market, but we can control how we compete in the market, and to that end we can and we will continue to support our partners and suppliers as we move forward into FY10.  His advice to the channel community: “In short, you must be able to offer your customers a comprehensive value proposition that ensures that you are differentiating yourself from your competition.  At Avnet it is our role to help our partners do this.”

With regards to what makes Avnet stand out from its competition, Gallagher says that having been in the business for more than 80 years – half of them as a Fortune 500 company – and as technology and business models have evolved, three things have remained constant: Avnet’s focus on building productive, mutually profitable relationships with their partners; innovative offerings that add value to their partners and accelerate their success; and creating a highly engaged and knowledgeable workforce that provides the highest level of customer service.

“Avnet’s financial strength, solid balance sheet and market leadership give us the ability to invest in long-term, shared growth opportunities with our customers and suppliers. Our global scale and scope – Avnet has locations in more than 70 countries – enable customers and suppliers to enter new geographies and markets and more efficiently capitalize on business opportunities. From chip to board to box, Avnet’s expertise spans the IT supply chain, giving us the ability to create unique IT solutions that solve customers’ real-world business problems,” explains Gallagher further.

Commenting on key channel challenges in the region, Gallagher feels that these hurdles have been and always are the same. His advice here: “We must ensure that we are adhering to business fundamentals each and every day.  Delivering value to our customers is paramount and value must be delivered everyday. Customer service is also another key area where we can ensure that we remain relevant during these times. Finally, it will be key to focus on where the growth is occurring, being equipped with key economic data and tools that promote your organization will also ensure that you are in a position to take advantage of market conditions.”