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Employing a multi-layered channel strategy, D-Link continues to grow and strengthen its relationships with its master distributors, Value Added Resellers (VAR's) and System Integrators (SI's), through various incentive reseller programs. D-Link products are distributed through an extensive network of distributors, value-added resellers and system integrators, covering 90 countries. The Company has opened more overseas subsidiaries, branch offices and warehousing facilities to increase the level of local support.

In 2000 D-Link introduced a parallel line of products under the "NetEasy" brand, to supplement its existing line, and launched retail and online channel sales to promote these new products. Offered mainly in Europe, this new

product line projected the perception of products that are simpler-to-use. Aggressively priced, the "NetEasy" product line consisted mainly of home networking, digital electronic and digital home devices. These products have had immense success in Europe.

In its fourth year in the retail market, D-Link United States retail, catalog and online channels embraced a threaded lifestyle campaign, which was a natural extension of their current Workgroup, Small Business, Home Office, and Digital Home campaign. The "NetEasy" products were brought in for a small number of accounts where a second price sensitive brand was necessary as it co-existed with the D-Link name brand products.