Ashok Kumar, CEO of New Trend Computer Networks, talks about how his company has grown over the years and become a dominant player in the networking products distribution business in the region. He also highlighted that the company is working towards launching managed services for SMBs sector this year soon.
How would you describe the distribution landscape in the region?
Over the years, distribution has completely transformed and evolved, and today, we see distributions moving from box selling to value-added distribution. I would also like to emphasise that several key distributors align their focus with the latest trending technology, such as AI, cloud, cybersecurity, and physical security. Channel distribution has always been key in connecting partners and vendors, irrespective of the technologies.
How has New Trend evolved over the years, so where does it stand today in the market?
With over 20 years in the market, New Trend Computer has witnessed the industry from its formative days of floppy disks to HDD, SSD, and cloud. It has been a fruitful journey, and we enjoyed being part of this technology evolution. One thing that has made us strong and even more competitive all these years is our willingness to adapt to changes and eagerness to learn and adjust to new technologies. Year after year, this has resulted in New Trend being recognised by our key vendors, which has motivated us greatly.
How has your company stayed relevant in the business even after so many years?
The credit goes to our team for their outstanding efforts and hard work over the years that have made us stay relevant to the business despite many ups and downs during the course.
Initially, it was a great struggle, but as years passed, we believed in only one aspect: “Solving Customer’s Pain Points.” Customers have always been at the heart of our business. Also, a special mention goes to all the partners who support us, and thanks to all the vendors who have greatly supported this journey.
What will be your focus for 2024?
We have always maintained our niche and worked around networking products and today, we are acknowledged as one of the key players in this segment and hold a major market share for various vendors that we work with. So, we will continue to stay focused on traditional networking switching and wireless networking products.
Our teams are really working on a big transformation to support our customers who need a refresh to move towards Wi-Fi 6/6E and even Wi-Fi 7. With 5G adoption, we see huge growth in Mobile Routing, which also develops new switching opportunities for optimal performance.
The thrust this year would be on two things, the first being to offer a bundle solution and the second to offer “As a Service.” Most SMBs prefer to go for managed services, and we are already discussing with all our key vendors to unveil managed services this year.
Which are your key markets in the region, and what kind of support do you provide your channel partners?
The GCC market has always been our focus and key strength; however, we have also cultivated a good customer base in Africa. Recently, we have seen a slowdown due to numerous factors. We are exploring expanding our direct presence in Saudi Arabia this year, and it would be a phenomenal opportunity with the relationship we already have with the channel partners and vendors.
How are you planning to grow your business in the next 12 months, and what growth are you expecting in this financial year compared to the previous year?
We have always planned to grow sustainably, and over the years, our focus on maintaining decent margins has ensured us that despite a drop in overall numbers during rough times, we stay profitable. Our focus on key areas and specialisation has helped achieve profitability. For us in 2024, our big bet is on managed services to help us build a new recurring revenue stream. We understand that it is not going to be easy, but we believe this is what the customers want.
What are the major challenges that the IT distribution industry is grappling with?
Today, technology is so fast-paced that distributors have a vital role in adapting to innovative technologies. The distribution role has moved from logistics to demand generation and value selling, thus investing in more resources and lower profitability.
A shift is also happening where many partners are sourcing directly from the vendors, hurting the distributor’s business. Also, with the supply chain shortage being resolved, the market is available with a surplus of products, forcing distribution to deal with huge Inventory and pricing issues in the channel.
In which direction is the company heading?
To be specific, the last five years have given us a clear experience of what the transformation will be and what the customers will expect. We see brighter chances coming up with the most advanced AI technology we have ever seen. Our focus will continue to serve the SMB segment, which we feel is a humongous market. And this year, our priority will be to roll out the managed services.
