Business News sponsored by Vodacom Transformation of Work:

Schneider Electric, a leader in the digital transformation of energy management and automation, is launching its Pro-Retailer Channel Programme in the South African market aimed at supporting the company’s indirect partner network.

Bradley Archer, Virtual Accounts Manager at Schneider Electric, explains that apart from a limited number of direct partners (business-to-business distributors), customers have not been able to open direct accounts with Schneider Electric for many years. Indirect partners (business-to-consumer resellers), such as smaller hardware and electrical supply shops, could only source some stock from Schneider Electric and the rest from its direct partners.

These retailers typically resell Schneider Electric’s full range of low voltage (LV) electrical distribution products and systems, including circuit breakers, buses, and enclosures.

“We noticed a large gap in the market in terms of our indirect partners. They didn’t have access to our full basket of products, so to purchase all the stock that Schneider Electric offers was a rather complicated process for them,” says Archer.

He explains that any indirect partner can sign up for the Pro-Retailer Channel Programme, and there are no qualifying criteria. The only condition is that a Pro-Retailer must achieve a target of R200 000 sales per year of Schneider Electric products to receive maximum benefits.

Several benefits

However, Archer says that participating retailers and distributors do qualify for several benefits as part of the programme, including product support from a Virtual Account Manager and incentives if certain targets are reached.

“We also have agreements in place where the Pro-Retailers are eligible for rebates if they reach certain immediate targets every year. These rebates are paid through our distributors, so while we do not have a direct financial relationship with the Pro-Retailers, we still do manage and foster these relationships,” says Archer.

Pro-Retailers will also have access to training and certification on the full range of Schneider Electric products, both physically and via the company’s virtual platform. While this is not mandatory, Pro-Retailers who choose to attain the certification will complete the same comprehensive training as distributors.

The Pro-Retailer Channel Programme was introduced to the market through a soft launch in October 2023 and received a very positive response from the channel, says Riyaadh Saley, Channel Marketing Specialist at Schneider Electric.

Building relationships

“The response has been overwhelming and many of the Pro-Retailers are already building up their relationships with our direct partners. We expect to formally launch the programme at the beginning of March 2024. By that time, we expect to have over 100 Pro-Retailers on board,” says Saley.

“One of the motivations for launching the Pro-Retailer Channel Programme One of the motivations for launching the Pro-Retailer Channel Programme is that we want to establish a healthy distribution network in South Africa. This program aims to provide value for all stakeholders throughout our value chain, from Schneider Electric to the end user.”

“We ultimately want to saturate the market by giving everyone access to our products at a fair, market-related price,” he concludes.