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2004-2005 China Small & Medium Business IT Channel Partners: Attitudes and IT Sophistication-Based Segmentation

Product Type: Market Research Report
Published by: Access Markets International Partners
Published: January 2006
Product Code: R149-450
Description
AMI estimates that there are about 5,632 IT channel partners (excluding ISPs) in the China that derive at least 50% of their annual sales revenues from sales to SMBs. Collectively, these IT SMB channel partners had annual revenues of $273.4 thousand last year, making them a very attractive market for IT vendors.

As intermediaries between IT vendors and end-users, SMB channel partners play a crucial role in the highly dynamic IT industry. With different specializations like Value-Added Resellers (VAR), System Integrators (SI) and Network Integrators (NI), Independent Software Vendors (ISV), IT Consultants, Web Solution Providers and Communications Integrators, these channel providers sell a wide range of products and services to IT end-users. In addition, their proximity to, and close interaction with the end-users also provides them an opportunity to participate in, and influence their clients' brand selections. Thus, they are sought not only by IT vendors trying to reach the end-users of their products and services, but also by end-users trying to keep up with the ever changing technologies.

Like the customers they serve, IT SMB channel partners are a diverse group and, in many respects, the channel partners' industry mirrors the adoption profile of its customers. This is reflected in the products and services they offer, specializations they develop, size, location and attitudes toward new technologies, etc., a fact brought into sharp focus in the four segments of the channel partners' industry presented in this report. These four segments have a one-to-one correspondence with the four segments identified in separate reports by AMI for the end-users in the China small business and China medium business markets. By following a constant segmentation structure both for the end-users and the channel partners markets, IT vendors can develop a constant and highly actionable marketing strategy and also implement it with greatest effectiveness.

This report presents an overview of the China IT SMB channel partners market segmentation. These segments, referred to as Tiers, represent a continuum from the technologically most sophisticated to the least sophisticated IT channel partners. Their technological sophistication is defined in terms of both the products and services they currently offer as well as their business attitudes (i.e. attitude toward adoption of new technologies, attitude toward marketing, and attitudes toward partnering with other businesses including IT vendors and other channel partners), which reflects their inclination to maintain their level of sophistication in the future. The Management Summary presents profiles of individual segments followed by detailed cross-segment analysis.
Table of Contents
Management Summary




Overview of China Channel Partners SMB Segmentation

AMI-Partners 2004 Channel Partners Segmentation

Profiles of U.S. Channel Partners Segments

Tier 1 Channel Partners: Enterprise Adopters or Premium Service Providers

Tier 2 Channel Partners: Value-Priced Service Providers

Tier 3: Mainstream Service Provider

Tier 4: IT Laggards




Statement of Methodology for SMB Channel Partners Study for China




Channel Partners Covered

The SMB Channel Partners Study: Survey Methodology

Universe, Sample Selection

Data Collection Method

Weighting of Survey Data

Incentives

Survey Instrument

Issues Covered in Channel Partners Survey

Margin for Error




Channel Partners’ Background: An Un-Segmented View




AMI Partners 2004-5 Channel Partners Segmentation




Study Overview

Background and Customer Profiles

Current and Planned Product and Service Offerings

Business Model and Attitudes

Decision Making and Vendor Rating

Demographics and Background

White Boxes Offered & Built

Sales & Business Techniques Used In China

E-Commerce Use & Revenues

Business Attitudes

Vendor’s

Vendors Channel Partner’s Satisfaction




China SMB IT Channel Partners Market Segments




Glossary




List of Figures




Figure 1 - Overview of 2004-5 China SMB Channel Partners Segments

Figure 2 - Channel Segmentation: Mapping Partners to SMB Customers

Figure 3 - Summary of 2004-5 China SMB Channel Partners Segments

Figure 4 - Summary of 2004-5 China SMB Channel Partners Segments (continued)

Figure 5 - Summary Profile of Tier 1: Prime Service Providers

Figure 6 - Summary Profile of Tier 2: Value Priced Service Providers

Figure 7 - Summary Profile of Tier 3: Mainstream Service Providers

Figure 8 - Summary Profile of Tier 4: IT Laggards

Figure 9 - Methodology

Figure 10 - Methodology (Cont’d.)

Figure 11: Issues Covered for the 2004-5 China SMB Channel Partners Study

Figure 12 - Objectives for SMB Channel Partners Segmentation Model for China

Figure 13 - Questions Used for China SMB Channel Partners Segmentation

Figure 14 - Margin of Error

Figure 15 - Summary of Findings for China

Figure 16 - 2004-5 Structure of China Channel Partner Industry

Figure 17 - Primary Business Activities of Channel Partners

Figure 18 - Primary Business of 2004-5 Channel Partners by Segment

Figure 19 - Location of China SMB Channel Partners by Segment

Figure 20 - Age of SMB Channel Partners by Segment for China

Figure 21 - Annual Sales Revenues by Segment

Figure 22 - Number of Employees by Segments in China

Figure 23 - Numbers of Locations by Segment in China

Figure 24 - Numbers of Active Customers by Segment on China

Figure 25 - Annual Revenue Growth Last Year by Segment in China

Figure 26 - Expected Annual Revenue Growth Next Year by Segment

Figure 27- IT Intensity of Customers by Segment

Figure 28 - Vertical Markets Served by Segment in China

Figure 29 - Average Customer Account Size by Segment

Figure 30 - Annual Sales Revenues by Segment for China

Figure 31 - Revenue Mix Size by Segment in China

Figure 32- Channel Partners Influence in Customers Brand Selection by Segment in China

Figure 33 - Effectiveness of Vendor Communication Strategies in China

Figure 34 - Number of Products & Services Offered by Segment

Figure 35 - Current & Planned Computing HW & SW by Segment n China

Figure 36 - Current & Planned Networking & Internet by Segment

Figure 37 - Current & Planned Security & IT Services by Segment

Figure 38 - Channel Partners Offering White Boxes by Segment in China

Figure 39 - Percentage that Build White Boxes by Segment in China

Figure 40 - Revenues Derived from Different Product & Services by Segment

Figure 41 - Percent Using Different Sales Techniques by Segment in China

Figure 42 - Average Margins for Computing & Networking Hardware by Segment

Figure 43 - Average Margins for Packaged & Custom Software by Segment

Figure 44 - Avg. Margins for Computing, Internet Services & Telephony by Segment in China

Figure 45 - Currently Have or Plan to Have a Web Site by Segment

Figure 46 - % Revenues from E-Selling by Segment for 2004-5 in China

Figure 47 - Business Attitudes by Segment in China

Figure 48 - Critical Customer Satisfaction by Segment in China

Figure 49 - Critical Customer Satisfaction by Segment in China (Continued)

Figure 50 - Critical Customer Satisfaction by Segment in China (Continued)

Figure 51 - Semiconductor & Computing Vendors Represented by Segment

Figure 52 - Networking & Storage Vendors Represented by Segment

Figure 53 - Software/Security Vendors Represented by Segment

Figure 54 - Computing & Semiconductor Providing Vendor Satisfaction by Segment

Figure 55 - Networking & Storage Vendor Providing Satisfaction by Segment

Figure 56 - Security & Software Vendor Providing Satisfaction by Segment

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