Following an extensive analysis of the Italian professional audio marketplace, Audio-Technica Europe's senior management team identified a need to establish a new approach in terms of distribution within a territory that, along with other Mediterranean countries, has been affected by issues such as the economic downturn.
Taking these issues along with the 'globalisation' of the European marketplace by large corporations and the cross-border activities of on-line retailers into account, a review of the business models that have survived for the past 30 years is now inevitable.
Both the Audio-Technica Europe and SISME management teams share a common understanding of these challenges, with the result being the new cooperation to distribute Audio-Technica's extensive professional product catalogue through this innovate solution.
"More and more our intention is to share business strategies, sales and marketing tactics with our distribution partners, taking fully into account the economic reality of the respective territory and an in-depth analysis of the costs of doing business" states Richard Garrido, CEO of Audio-Technica Europe.
"Of course this creates a certain transition period in order to overcome external resistance to the correct alignment of discounts, margins and payment terms," continues Garrido, "but nevertheless we believe that such a process is necessary for Southern European distribution companies in order to both survive and develop in the future.
"As a manufacturer we have to take a responsibility in the success of our distribution partners which goes beyond just thinking about the amount of product they buy and sell from one year to the next. We are striving toward a much closer relationship based on a mutual and reciprocal respect of both parties' organizations."
Claudio Bugari, president of SISME, comments, "We are delighted to partner with Audio-Technica, both company and product range, who we've admired for their heritage and technical innovation over many years. It is refreshing that we can create a new business model in conjunction with a like-minded manufacturer, suited to today's trading environment, and to approach the future with enthusiasm and confidence."
(Jim Evans)
