Direct sales to drive growth

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Wholesale distribution companies are expected to increase revenues from direct sales by £16bn this year, according to research from Vanson Bourne. 

The research, based on economic models provided by the Centre for Economics and Business research  and sponsored by ERP provider NetSuite,  predicts a rise from £93bn in 2011 to £109bn in 2012.

“Wholesale businesses are largely positive in their outlook for revenue growth. The survey results show that in 2012 direct sales are likely to be important revenue streams, and growth in the adoption of e-commerce, m-commerce and international sales are identified as potential sources of this revenue,” said Colin Edwards, Economist at Cebr.

Despite a continued period of economic uncertainty, 66 per cent of UK wholesale distribution businesses predict positive revenue growth this year. To achieve this, they are adding a direct sales channel to create new sources of revenue, and there will be a 27 per cent growth in the number of companies selling direct to end users over the next year.

Roman Bukary, AVP of manufacturing and wholesale & distribution at NetSuite, said: “In challenging economic times, savvy WD business leaders rely on multi-channel sales strategy, invest in technology to innovate, and focus on delivering value-add customer services all in pursuit of profitable growth and new markets without being burdened with spiralling management and infrastructure costs.”

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