We recently spoke to Israel Garcia, Managing Director of BDS, who shared his views on the growing importance of software in our strategy and the market trends we need to keep a close eye on…

Econocom Stories: Why should Econocom pay more attention to software?

Israel Garcia: Recent analyses show that hardware-focused value-added resellers (VARs) are likely to have a difficult year in 2024. Those focused on software are better placed to navigate this period. Software budgets have historically been more resilient and are increasingly moving towards subscription models, creating more predictable and recurring revenues. For example, the average annual growth rate for large software companies has been 18% over the last five years, with hardware coming in at just 4%. This clearly indicates that software offers a more dynamic growth opportunity.

E-S: What are the key figures for the software market in Europe?

Israel Garcia: According to Statista, the European software market is expected to reach revenues of 157.30 billion dollars in 2024, with an average annual growth rate of 5.84% until 2028. The enterprise software sector will dominate this market, accounting for 65.38 billion dollars in 2024. This underlines the growing demand for robust, integrated software solutions in European companies.

E-S: How do these trends compare with the devices market?

Israel Garcia: According to Statista, the devices market is expected to generate 129.60 billion dollars in 2024, growing at an AAGR of 2.78% to 2028. In comparison, the faster growth in the software sector underlines the strategic importance for Econocom of focusing on software.

E-S: Which macroeconomic factors are driving growth in the software market?

Israel Garcia: The main drivers include the increasing digitisation of businesses, the rise of e-commerce, and the growing importance of data analysis. In general, every company wants to innovate, and these days innovation is driven by software in any field.

E-S: What trends are you seeing in the European software market?

Israel Garcia: We’re seeing strong demand for user-friendly, efficient and customisable software, often cloud-based for greater flexibility and scalability. AI and machine learning technologies are also gaining in popularity. These technologies enable tasks to be automated, improve efficiency and enhance the customer experience. Open-source software is also becoming more common in Europe. It offers flexibility and cost-effectiveness.

Israel Garcia: Our new strategic plan is based on the idea of creating end-to-end solutions in key areas such as the workplace, infrastructure and audiovisual. On the one hand, software is at the heart of these end-to-end solutions, bringing together hardware, services, users and information. On the other hand, businesses need a complete package of design, consultancy, deployment, operation and financing services to unleash the innovation and transformation potential of software. Econocom can provide this complete set of services, simplifying and accelerating innovation for our customers.

Brussels, 11 June 2024 – A responsible digital entrepreneur and pioneer of the circular economy in Europe, Econocom is thrilled to announce its inclusion in the Euronext Tech Leaders segment, as part of the initiative dedicated to fostering high-growth and leading tech companies.

To join the circle of more than 110 technology companies among more than 750 companies listed on Euronext in the Tech sector (CleanTech, HealthTech and General Tech), criteria for size and revenue growth, but also quality of the issuer’s technological offerings are retained.

Launched in June 2022, the Euronext Tech Leaders initiative is supported by a strong network of partners and aims to recognize and support top-tier tech companies listed on Euronext markets. It features a segment of over 110 European companies, an index, and a comprehensive suite of services designed to support participants throughout their listing journey. The Euronext Tech Leaders index will be updated after markets close on Friday 21 June 2024 with effect from Monday 24 June 2024.

By joining the Euronext Tech Leaders, Econocom gains access to an extensive ecosystem tailored to the tech sector. This includes engagement with a broad, international investor base financing tech companies of varying growth stages.

For more information on the specific criteria for companies to qualify for the Euronext Tech Leaders segment, please visit Euronext Tech Leaders criteria.

Econocom is excited about the opportunities this inclusion brings and looks forward to leveraging the resources and network provided by the Euronext Tech Leaders initiative to drive further growth and innovation in the tech sector.

Euronext Tech Leaders | euronext.com

When the Japanese chemicals giant KAO Corporation (with over 33,000 employees worldwide) turned to Econocom in Spain last November, it wanted more than just a change of supplier. KAO is involved in the production of cosmetics and needed a full digital transformation. The Japanese chemicals flagship was putting out a call for tenders to help it adopt a digital transformation of its hardware as well as its uses.

Jorge Osorio, who joined the company in 2006 acting as account manager at Econocom since 2024, recalls this period with a smile. «It was an unprecedented opportunity,» he says. «We saw beyond the initial challenges and were able to convince KAO to appreciate our service offering.»

The final response was a remarkable success, incorporating not only the Services offering but also a full range of IT solutions (including Lenovo desktops and laptops) as well as an innovative financial model through the use of TRO (Technology Refresh Option) technology.

One of the highlights of this collaboration was the way in which the Econocom teams worked hand in hand. «We were totally aligned on communication and strategy with my colleagues Eduardo Segura (P&S) et Joël Valtierra (TMF),» explains Jorge. «We acted as a single point of contact, a one stop shop for KAO, ensuring that every step was shared and validated internally before being presented to the client.»

But the real challenge was in fact the change itself! In order to meet this major challenge seamlessly, the Econocom teams involved in the project put in place a robust change management program including webinars, videos, training and even an internal marketing campaign to inform KAO employees of the need to move to Windows 11 and the rest of full Microsoft Office package. Twenty-five pioneer KAO employees were selected to test the project, forming a community of ambassadors ready to drive and support the transition.

«It was a very rewarding experience,» says Jorge. «We successfully deployed the new platform and it strengthened our position to win a new tender for a helpdesk service.»

The collaboration paid off, with an initial success in January and a solid position to win a second tender. «We don’t think in terms of isolated individuals,» concludes Jorge. «We’re so much more powerful together.»

And so the success of this collaboration with KAO Corporation perfectly illustrates Econocom’s vision: the «One Econocom» model, where each element (whether people, services or technologies) is more than just the sum of its parts.

Revenue of €634 million, up¹ 2.6%, driven by the continued growth of the finance leasing business (TMF), a gradual recovery of the Products & Solutions business and solid performance by Services

During the first three months of 2024, the businesses reported the following performances:

• Technology Management & Financing (TMF) continued to perform well, posting revenue of €207 million, an increase¹ of 10.6%, 10.2% organically, amid a continually tight credit market. Thanks to its flexible, innovative offering that addresses clients’ need for financing of digital or strategic assets, TMF maintains its positive trend after posting strong growth in 2023.
• Revenue for Products & Solutions (P&S) totalled €305 million, down¹5% (2.6% organic). Performance in the first quarter varied from country to country but overall posted a notable improvement on H2 2023. Furthermore, the organic decline in P&S during Q1 2024 is in line with trends in the European IT distribution market, which reported decreases of 2% for Workspace solutions and 7% for Infrastructures³.
• Services continued its recovery, reporting its fourth consecutive quarter of growth. Revenue for the first quarter was up (total¹ and organic²) 3.2%, standing at €122 million, driven mainly by Spain and France.

2024 revenue growth guidance confirmed

After an altogether positive first-quarter performance, the group confirms its annual revenue growth guidance of between 3 and 5%, profiting from an IT asset distribution market expected to grow³ in the second half of 2024.

Find our more in the press release attached to this article. 

¹  At constant standards

²  At constant scope and standards

³ Context study for beginning of 2024.

The JUMP campaign saw the light of day on 28 March at the «Jours Tranquilles» studio in the heart of Clichy, with around twenty people mobilised for this intense day of shooting. Masterfully organised by the production company BENGALE (Coca-Cola, 2020 Olympic Games, etc.), directed by Aurélien Chauvaud (Orange, Mastercard, Fondation Abbé Pierre, etc.) and watched by a delegation from Econocom, the shoot saw the actors jump more than 70 times in one day to capture THE perfect moment… the one which perfectly illustrates the campaign! Rest assured: there were no sprains or bruises despite the abundance of physical energy expended.

The independent advertising agency JOSIANE was chosen following a highly-competitive process at the end of 2023. Laurent Allias, the agency’s founder and Chairman, explains what guided the agency’s creative intentions for this campaign, which was conceived and rolled out in less than 5 months …

1.What challenges did you have to overcome ?

Behind each campaign lie unique challenges to be met. For «JUMP,» the real challenge was to capture the essence of the transition to entrepreneurship while preserving Econocom’s identity and values. Josiane’s creative team set out to accurately represent the entrepreneur’s posture: the leap into the unknown, the excitement of a fresh start and the determination to succeed. Every gesture and expression had to reflect this quest for freedom and evolution.

2.What were your creative choices and sources of inspiration ?

To embody this significant transition, Josiane drew inspiration from the concept of the «great leap into the void.» Going from employee to entrepreneur requires a dash of courage and daring, and it was this idea of challenge and freedom which guided the creation of the campaign. By visualising Econocom agents jumping from one skyscraper roof to another, we wanted to capture the momentum towards a promising future, propelled by self-confidence and determination. Every element – from the choice of words to the imposing backdrops – helps to illustrate this transition to new professional horizons.

3.Econocom’s image as seen through the campaign

This campaign is more than just an advertisement: it reflects the profound perception of Econocom as a dynamic and visionary company. We see Econocom as fertile ground where each individual can flourish, cultivating their freedom and independence while benefiting from the support of a solid international group. The company is constantly reinventing itself, challenging boundaries and offering its agents the chance to push back their own frontiers. «JUMP” embodies this philosophy, offering everyone the opportunity to launch themselves into a bright future full of possibilities.

In conclusion, «JUMP» isn’t just an advertising campaign: it’s a testimony to Econocom’s vision and values. It’s an invitation to embrace change, to dare to dream big and to seize the opportunities which present themselves on the path to entrepreneurship.

As part of our One Econocom strategic plan and in order to support our organic growth objectives, we’re proud to announce the launch of our JUMP advertising campaign. It illustrates the great leap into entrepreneurship made by two salespeople who decide to become agents. This Europe-wide initiative marks a significant step forward in our recruitment strategy. Hélène Lory-Delambre, Director in charge of the sales team development programme, tells us more about this campaign and the impact it aims to have. 

INTERVIEW 

Hélène, can you tell us more about the launch of this JUMP advertising campaign?

Hélène Lory-Delambre: Firstly I’d like to express our enthusiasm for the launch of this campaign. It’s the result of a collaborative effort between the Josiane creative agency, the Group Communications department, the country teams and the Group Management Committee. JUMP is designed to support our plan to recruit 100 agents in 1,000 days, which is crucial to our organic growth strategy up to 2028. What’s special about this campaign is the extremely short period of time between the idea being born (in Marbella in November 2023) and its deployment just 5 months later!

How did this campaign come about?

Hélène Lory-Delambre : This synergy between independent agents and Econocom dates back almost to the company’s creation. This model has no equivalent in the sector. Through the multitude of benefits offered to agents, the company – and, of course, our customers – we’ve created a unique model which is now more than ever connected to developments in the professional world.

The benefits extend to agents, Econocom and customers. The independence of our agents, coupled with uncapped remuneration indexed to results, ensures stable commercial relationships and exceptional retention. For customers, it’s the guarantee of a long-term relationship with a trusted intermediary.

In short, it’s a win-win-win relationship for the agents, the company, and of course the customers.

What communication channels will be used for this campaign?

Hélène Lory-Delambre: The campaign will be deployed mainly on the LinkedIn and YouTube social networks, and in a more confidential manner via dynamic billboards in the La Défense district (close to our competitors’ offices), and the main railway stations in Northern Italy. We’ve planned several waves of communication over the coming months to maximise our visibility. The next one is scheduled for September. We’re also rolling out a landing page on our website dedicated to the project, with videos of testimonials from agents from several countries.

What are the main aims of this campaign?

Hélène Lory-Delambre: This campaign aims to highlight what makes Econocom unique and also contribute to our recruitment objective. We want to promote our commercial agent model and our willingness to work with entrepreneurs to stimulate the growth of our business.

We extend our sincere thanks to everyone involved in the campaign, which was completed in record time. We encourage everyone to become ambassadors for this campaign and to use the communication tools provided. Who knows – maybe we’ll discover a future agent among your network? – and you might benefit from the special co-optation programme we’ve put in place.

Any final words, Hélène?

Hélène Lory-Delambre: This project as a whole (and the communication aspect in particular) is also an opportunity for us to redefine our identity as an employer on the European market. Faced with fierce competition to attract and retain sales talent, making our employer brand stand out from the crowd would be a major trump for us! Current developments in the labour market show that independence and freedom in the way you organise your daily affairs are strongly desired. We’re responding to this demand with the agents programme.