TomTom in trouble with distributor in South Africa

TomTom in trouble with distributor in South Africa
Core group, the unique South African distributor of TomTom’s products, last week decided to end its relationship with the Dutch company.

"Since inception of the relationship at the end of 2006 TomTom has continuously failed to honour its contractual obligations”, says RJ van Spaandonk, Core Group's director in charge of its navigation business, adding that Core “had no choice to terminate the relationship due to, inter alia, TomTom's inability to supply a competitive product range, and support it with appropriate marketing activities in southern Africa”.

"We haven't had the support in terms of localized product ranges and marketing. We still believe TomTom is the best supplier of these products and very well positioned to be the number one player in SA, but we reached a point where the lack of support and product supply issues were damaging our reputation."

Core Group was currently distributing the TomTom One (second edition), TomTom One XL and TomTom Go 720. The company is far to be an anonymous player on the South African ICT market, being, among others, the distributor of Apple and Adobe in the country

The biggest worldwide competitor to TomTom, Garmin - who has been distributed since 1991 in South Africa – is said to currently enjoy around 75 percent market share in South Africa. The Personal Navigation Device (PND) market was estimated to be around 200,000 devices in 2007. MapIT, one of the leading map providers in the region sold 78,000 map licenses in the last quarter of 2007.

Wednesday, May 21st 2008

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