Channel partners in East Africa, including resellers, distributors, system integrators and panel builders, often need to overcome significant hurdles to sell solutions in the local market effectively.
Geraldine Sande, Channel Sales Leader for East Africa at Schneider Electric, says limited access to products, a lack of product knowledge and not having the financial muscle to attract and buy stock from multinational brands are the main challenges that channel partners often have to contend with in the region.
“However, even if local partners have access to a wide range of international products, it is key for them to partner with Original Equipment Manufacturers (OEMs) that prioritize local investment and adopt a “glocal” approach – a strategy that blends global expertise with local insights and businesses to create successful partnerships,” says Sande.
“Adopting a glocal approach, as Schneider Electric has done in Kenya, can provide several benefits. For example, us opening an office in East Africa ensures local availability and access to products for Kenyan distributors and resellers.”
She explains that the glocal approach also allows OEMs to understand local market requirements and offer products that fit those needs. For example, in East Africa, the demand may be for basic, durable white switch rockers, rather than the more expensive, feature-rich products sold in Europe or even South Africa.
Leveraging local banks
“By being a local company, Schneider Electric Kenya can trade in Kenyan shillings. This enables local entities, both distributors and resellers, to leverage local banks, who are more confident in providing them with loans or initial capital, as they are familiar with Schneider Electric Kenya as a trading entity within the country. This opens up the financial aspect for the local channel partners,” says Sande.
Crucially, glocal companies can also provide comprehensive support that is tailored to the unique requirements of the East African market by matching products to local market requirements. Sande says that by having a local presence, an OEM understands the specific product needs of the East African market and offers products that fit those requirements.
“Furthermore, employing local staff helps bridge the communication and cultural gaps. For example, our teams in Egypt, Kenya and South Africa work differently due to the local cultural and language nuances in each market,” she says.
“The glocal approach helps increase customer intimacy, both from the end-user perspective and the reseller or channel partner perspective. By understanding the local nuances and employing local teams, we can provide a more personalised and intimate customer experience.”
Aligning goals and strategies
Alignment between the OEM and the distributor/channel partner on goals and strategies is also crucial, Sande points out. This allows both parties to agree on product pricing, finance and availability, so the distributor can see the OEM’s vision and future direction, whether it’s related to technology, product development or research and development.
“For example, if we are developing smart, digitally enabled panels the distributor can understand this vision and align their sales efforts accordingly, as they have the necessary information and insights. Ultimately, this alignment between the OEM and the channel partner leads to shared goals, mission and overall growth, strengthening the distribution network relationship.”
Sande notes that to ensure effective collaboration and support, the criteria that East African channel partners should consider when selecting a solutions partner should include local support, end-to-end project support, understanding local market needs and warranty and aftersales support.
“Ultimately, the success of any product depends on the right match between an OEM and the right local channel partner. Schneider Electric Kenya is committed to supporting the East African market with its local presence, product availability and the right partnerships,” she concludes.
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