6/25/2009 4:48:00 PM
Distributor pitch for Orange's £12m accessories contract
At least five distributors are currently preparing bids to tender for the Orange accessories contract that has become available.
Successful pitches will begin this September for the £12m per year contract that is renewed every two years.
The deal will cover supply into Orange’s direct channels: stores, website, telesales and corporate.
A number of distributors including Data Select, 20:20 Mobile, Kondor, Frequency 3G and Shebang are expected to make pitches for the contract.
The accessories contract is currently held by Avenir and Dextra (20:20), but this is likely to change in 2009.
The UK only accessories contract is for the non-exclusive supply of a range of accessories from phone socks to more conventional chargers, batteries, speakers and Bluetooth headsets.
Distributors believe the accessories market is expanding, with speakers, headphones, satellite navigation and Bluetooth headsets growing in volume and value for the segment.
The invitation to bid by 1 July, for a contract starting 1 September, landed on a number of distributors’ desks at the beginning of the week, including current incumbents Avenir and Dextra.
The bidding document informed distributors that Orange has spent roughly
£12m per year on accessories over the last three years, reaching a total of £36m across the period.
20:20 Mobile’s Dextra business has historically been the strongest player in accessories, but rival Data Select has posed a sterner challenge in the
last year along with the specialist, Kondor.