INTERVIEW Paul Jones, CEO, Patriot Memory
by Liam McSherry, Thursday 23 January 2020
[Channel EMEA] [CE] What do you want to achieve at DISTREE EMEA 2020? What are your key goals for the event? Will you make any specific company announcements at the event?
[Paul Jones] [PJ] Patriot has exhibited at DISTREE for several years. Although Patriot has been in business for 35 years, we want the reseller community to know that Patriot is much more than a memory and storage company. Patriot builds a full line of high performance products, such as gaming DRAM and gaming accessories, under the Viper brand. Patriot has been producing these products for over 25 years. Patriot will be announcing a new external storage device that will work for existing PC’s, Apple products, and gaming units, but also will work for the upcoming Sony PS5 and Microsoft’s new Xbox. Patriot will launch this product with capacities up to 2TB.
[CE] What products/solutions will you be showcasing at DISTREE EMEA 2020? What do you want distributors to know about your portfolio?
[PJ] Patriot will show its line of SSDs, DRAM, and gaming accessories. Patriot has been in business for 35 years, and with strategic alliances with suppliers over this 35 year period, Patriot is able to secure parts even in these difficult supply situations. Patriot has been aggressively filling orders with its partners and has plenty of inventory to fulfill orders with new partners. One of Patriot’s strength is to fulfill orders when our partners need product the most.
[CE] Describe how your channel business has developed in the past 12 months? What trends have you seen and what have been the highlights for your business?
[PJ] Revenues in the EU region were up over 50% year on year in 2019. Our expectation is to continue to grow in 2020 and beyond. Patriot has been able to fulfill customer requests, even during times when the market is short on products and prices are moving up. Patriot is very selective in choosing its channel partners, and because of this, Patriot’s partners can achieve high profitability on our product line. Since Patriot’s products are not overdistributed, our partners can market the product correctly and not necessarily have to compete on price because of the limited competition. This strategy is how Patriot has been able to grow so rapidly.
[CE] Which geographic areas and/or channels represent the greatest opportunity for growth for your company in EMEA and globally?
[PJ] Patriot has the philosophy that all channels are important. While some markets maybe bigger than others, Patriot is interested in developing business in all markets, regardless of the size of the market.
[CE] Why should distributors and retailers focus on your products? What makes your channel proposition better than competitors in the market?
[PJ] Patriot has been in business for 35 years. Patriot builds the highest performance products in its categories—namely DRAM, SSDs, flash, gaming accessories and high performance memory. Patriot is the world leader for price to performance products but the key strategy that differentiates Patriot from its competition is its ability to have limited distribution in each country. While some competition may have 5, 10, or even 20 direct accounts in-country, Patriot limits its direct business to just a handful of direct partners. With this strategy, the product does not become overdistributed. Patriot adopts this strategy so its partners can enjoy healthy margins on its product line.
[CE] Do you have a structured channel program? Do you offer a strong margin proposition to your partners? Please, explain this area of your business.
[PJ] Patriot has a structured channel program with its partners. With Patriot’s limited distribution model, strong margins are given to Patriot partners on all its product lines. This is an important differentiator from the competition—limited distribution leads to higher margins for Patriots partners.
[CE] What sort of support do you offer distributors in terms of marketing, promotions and channel development activities?
[PJ] Patriot offers a wide variety of channel programs, launch collateral, marketing reviews of Patriot’s products, social media support, co-marketing with other brands in the IT industry, and the relationships Patriot has built in the market for the past 35 years.
[CE] How quickly is your business growing in the EMEA region? What market trends have you identified that are impacting your business segment?
[PJ] Patriot has grown over 50% year on year in 2019. Our goals for 2020 and beyond remain very ambitious. 2020 will bring a challenging time for resellers to bring in enough supply in DRAM and SSDs. It will be important for the reseller community to choose a strong partner who can supply products throughout the year, as there will be several shortages of product for the next 12 months. Patriot will be able to supply its partners with product and let Patriot’s partners enjoy a strong margin on its product line.
[CE] Is your company channel friendly? How would you describe your overall go-to-market approach in the EMEA market? What are your overall channel goals and aims for 2020 in EMEA?
[PJ] Our market is very channel friendly. Patriot works with limited partners in region so our partners can enjoy a healthy market and Patriot can focus its marketing efforts with the few, select partners. This strategy allows Patriot products not to be overdistributed and margin integrity remains intact. For 2020, we want to grow our market share in existing and new markets. Patriot plans on choosing a few more select partners in countries to help grow the market share.
[CE] What else should distributors attending DISTREE EMEA 2020 know about your company and your products and/or solutions?
[PJ] Patriot always manufactures high end products geared for high end consumers, high performance community, and the gaming industry. Patriot also manufactures a full line of industry standard mainstream parts for the typical consumer. But this same attention to detail for Patriot’s high end product line is also produced for Patriot’s mainstream product. Our customers can rest assured that Patriot produces the best price to performance products in the industry.