Mexico. Competing successfully and generating new business in the Mexican market for multimedia technology solutions seems a very attractive task for the distribution channel. And much more if you consider that the value of this market was 3,172 million US dollars in 2017, and that this figure represents 38% of the value of the industry throughout Latin America.
According to data from AVIXA (The Audiovisual and Integrated Experience Association), the organizing association of the next TecnoMultimedia InfoComm Mexico fair, the annual growth of this industry will be 6.3% until 2022. These numbers are very seductive, so many will fight for a higher share. (Source: 2017 AV industry Outlook and Trends Analysis from IHS Markit for AVIXA)
In its role as promoter of the growth of the industry and provider of valuable information, AVIXA has identified trends, challenges and opportunities for the distribution channel in Mexico, which should be taken into account by those who seek to stand out in a market as striking as it is competitive.
Where are the business opportunities?
In Mexico, trends indicate that the multimedia technological solutions in greatest demand are those of conferences and collaboration within the corporate sector; digital signage for advertising and information applications in public and retail spaces; and applications for live events and entertainment, in which the management and distribution of content, audio and video equipment, interaction with mobile devices, among others; are some of the immediate opportunities to generate business.
At the international level, the AVIXA study highlights four global trends:
- Projection in decline: Other technologies for video deployment, such as flat screens, have evolved and are gaining ground as a solution. In the short term, a revenue contraction is expected, although in the long term it is estimated that there will be growth in specialized and large-format projection solutions.
- Servers and Storage: Storage, distribution, and streaming products and services account for 26% of the market in the Americas. This trend includes the use of AV servers and servers for professional audio and video applications and services. Since there is a lot of infrastructure in this field, a moderate growth of 3% per year is expected.
- Smart Buildings: The construction and adaptation of smart buildings is a reality that demands multiple solutions, especially in the field of control systems, automation and monitoring.
- Lighting: The commercial transition towards the use of controllable LEDs and their impact on energy efficiency is a very good step. In the Americas, investment in luminaires is expected to grow by 24% by 2022. The use of new luminaires goes hand in hand with the integration of new control systems.
- The importance of local representation of brands and manufacturers
According to Sergio Gaitán, Country Manager of AVIXA in Mexico, in the coming years, distributors will continue to play a fundamental role by representing foreign brands and manufacturers locally. For the Latin American market it is very important to feel that there is someone nearby, who speaks your language, who can confirm the existence of a product, offer advice or give an express training, in addition to always being available to answer any questions.
The establishment of local offices or the regional presence of representatives shall not replace distributors with well-established basic infrastructure and tools.
The risk of achieving sales goals at all costs
With the desire to achieve its sales goals, the distributor seeks to offer differentiators that meet the needs of the multimedia integrator. It is common to provide a high level of advice, with quick response and a wide scope, covering many of the areas of a project. Although it seems ideal, if clear boundaries are not established, this presents the risk of forming a vicious circle, in which the integrator generates an excessive dependence on the staff and services of the distributor.
Failure to detect and avoid such dependence can result in services and man-hours that are never billed, low professionalization of the integrator and, therefore, an obstacle to the healthy growth of the industry.
"Unlike other more mature markets, in which all services are billed, the Mexican market tends to confuse the concept of value added with uncharged services," says Sergio Gaitán of AVIXA.
Speed of response: key to setting up projects or solving problems
While in-depth knowledge of the products and services of the brands represented is critical, distributors will need to invest in improving the time and manner in which they provide this information, to integrators and end users, for project configuration and troubleshooting of failures or problems.
In this area, the immediate availability of information through various platforms, process documentation, the use of standards and specifications, will be key to offering better service.
The opportunity for professionalization and specialization
Although the ideal scenario would be for distributors to specialize in distribution and integrators to design and integrate solutions, it is impossible to prevent distribution companies from seeking to expand their field of action and open new business units to meet integration projects.
For them, AVIXA's recommendation is to take the path of professionalization with specific actions such as:
- Separate distribution and integration business units.
- Train, train and retain talented staff.
- Assign value to all the work and time spent on a project from quote and design, to integration and after-sales service.
- Learn to charge for services.
- Understand the advantages of collaboration and alliances with consultants, designers and specialized integrators.
- Manage standards and document processes.
Where to find more information?
A good option to delve deeper into the multimedia technology solutions industry and renew knowledge is to attend the conferences and academic courses that will be given within the framework of TecnoMultimedia InfoComm Mexico, an event organized by AVIXA and Latin Press.
In the 2018 edition, a series of six seminars will be offered under the concept of Summits TecnoMultimedia InfoComm Mexico, in which both industry professionals and end users from the most diverse vertical markets will have the opportunity to delve into topics such as: Digital Signage, Technology for Education, Unified Communications, Control Rooms, Live Event Production and Smart Home. In addition, the traditional vocational training program of AVIXA.
TecnoMultimedia InfoComm Mexico 2018 will be held from August 15 to 17, at the WTC in Mexico City. Online registration is now available at this link for those interested to get their free entry.
