Sales Expansion Plans for Broadcast Technology Vendors

Posted by Joe Zaller
Aug 03 2009

I recently started a series of posts about trends that are specific to broadcast technology vendors.  I started by looking at where broadcast technology vendors see the most sales growth coming from over the next 2-3 years.  My research shows that the majority of vendors think that China will be the fastest growing region in the next 2-3 years, an average of 20%, and this view is held by vendors across the world.

Now I am going to look at what vendors are actually planning to do in terms of their global sales coverage — with their own direct sales force.

As part of the 2009 Big Broadcast Survey, I asked approximately 550 broadcast technology vendors about where they operate their own offices today and where they plan to open their own offices in the future.

 

Question: Which statement best captures your company’s direct sales situation in each region? Vendor Office Plans

 

Europe and North America lead the way in terms of the current location of vendor offices, with China close behind. 

China, which was ranked #1 by vendors in terms of potential growth over the next 2-3 years, ranks last in terms of where vendors plan to open new offices.  Instead it is that Middle East and Asia-Pac regions that are predicted to see the most vendor activity, in terms of office expansion, over the next 2-3 years.

So why are the same vendors who predict that their strongest growth will be in China not rushing to establish offices there? Possibly many vendors will use an office in Asia-Pac (e.g. Singapore or Hong Kong) as a base of activity for the entire region and will sell into China from there.  Also, China is an expensive place to operate with a dedicated staff, so perhaps smaller vendors are opting for a regional approach, which involves using established dealers, distributors and systems integrators to reach the Chinese market.

It is the Middle East region that is predicted to have the highest percentage of new vendor offices over the next 2-3 years.  As this market continues to grow, driven by the creation of government supported Media Cities, there is no doubt that the region will see increased spending in the area of broadcasting technology, and many vendors see this as the next logical step in their global expansion.

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