- June 1, 2022
In 2021, a renewal strategy supported the ACC Distribution‘s growth
In 2021, the consolidated sales revenue of ACC Distribution, a group of companies wholesaling electronic devices, grew to EUR 299 million, 17% more than in 2020. The group generated a net profit of EUR 6.5 million in 2021, 37% more than the previous year.
“In the second year of the pandemic, with continued growth in demand for many categories of electronic devices and ongoing market shortages, we have been able to ensure a stable supply chain and offer a wide range of devices to our business clients. Other factors contributing to the growth of revenue and profitability were the consistent renewal of the categories and brands represented by the company, the efficiency of internal processes, and a committed team,” says Žymantas Baušys, CEO of ACC Distribution, summarising the factors that contributed to the success of the company.
2021 showed market growth in most electronic product categories
In the Baltic States in 2021, the demand for major IT product categories – laptops, tablets and monitors – grew. Only the printers category saw a decline. This market situation was directly linked to digitalisation processes and the continuing need to create and modernise remote working or learning spaces. Two trends were also evident in the IT product categories: consumers opted for more expensive and higher quality products, and average prices of all product categories increased. Among IT products, the company achieved the highest growth in the tablet category, with a 75% increase in revenues.
In 2021, demand for most other categories of electronic devices also grew, driven by consumers’ intention to modernise their homes and try new technologies. ACC Distribution’s business growth was strongly supported by the active development of the small home appliances, TVs and smartwatches categories. The company‘s revenue in all of these categories grew by over 70%, which is significantly faster than the categories‘ growth in the Baltic countries.
The renewal strategy resulted in new categories and new brands
“We constantly monitor technology trends and expand our product range with new brands, showing the highest potential. In the past year, the company signed 25 cooperation agreements with new electronic devices manufacturers, and this constant renewal strategy generated more than 5% of our revenue last year,” says Ž. Baušys.
The company continues to actively focus on one of the most promising ACC Distribution‘s business areas – e-mobility and sustainable energy. In 2021, the company started to represent electric vehicle charging station brands, including Wallbox, EVBox, and Green Cell. Already for a year, the company has been selling electric motorcycles and scooters, Vmoto and Super Soco, and electric bicycles, Telefunken, Italwin and others. The company has also added the latest generation of solar panels Trina Solar to its portfolio. ACC Distribution has started to develop this product category and plans to expand its range in the future.
According to Žymantas Baušys, ACC Distribution aims to create more value-added services for its business customers by renewing itself, which is why last year, the company joined the software trading and subscription management platform KATY, which is being developed together with the distributors‘ Global Channel Network. Using this trading platform, business customers can digitally execute and manage software trading 24 hours a day.
As part of its renewal strategy, the company has set itself the objective of developing the smartphone category and adding new brands to it. In 2022, ACC Distribution became the Baltic representative of the OnePlus brand of smartphones and accessories. The brand is part of the BBK Electronics group, the world’s leading manufacturer of smart devices.
A committed team is the foundation of a successful business
In times of the pandemic and geopolitical turmoil, ACC Distribution focuses on the team, its well-being, motivation and internal communication. The initiatives have not gone unnoticed, with a significant increase in employee engagement, from the 70th to the 88th percentile during the year.
According to Ž. Baušis, the company can successfully develop its business and achieve excellent results primarily due to the commitment of its professional team, which is the foundation of the business and the reason for its good results. “We continuously involve our team of over 200 employees in streamlining processes and changing the business direction. For example, last year, the team organised an internal efficiency hackathon, during which the employees identified the most inefficient business processes, considered the most appropriate solutions and are now implementing them,” Žymantas Baušys comments the team’s focus on improving the company’s operations.
Keeping priorities consistent will help meet the challenges of 2022
Following Russia’s invasion of Ukraine in February 2022, ACC Distribution terminated sales to clients in Russia and Belarus. . “The company has consistently implemented its strategy of exiting the Eastern markets and focusing on the Baltic countries over the last five years, so the suspension of trading will not have a significant impact on the Group’s results in 2022, and the lost revenue will be compensated by the new business,” says Ž. Baušys.
According to the CEO of ACC Distribution, the first five months of the year were successful. However, the overall trends in the technology market are different than in the last two years, with some product categories where demand is falling or growing more slowly. Thus, looking ahead to the full year, there are many challenges ahead, which the company plans to manage with consistency in terms of priorities – renewal of business lines, development of added value for partners, streamlining of business processes, and focus on employees.
As a reminder, ACC Distribution, an ACME Group company, represents more than 200 suppliers and brands of information technology, computer hardware, software, audio, video and photography, computer games and home appliances, including brands like Dell, Lenovo, Xiaomi, Asus, Acer, Microsoft, LG, Samsung and others. ACC Distribution Group consists of 7 companies in Lithuania, Latvia and Estonia.