The distribution segment of the business is expected to grow this year and could increase revenues.

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The distribution segment, which produced 93% of first-quarter revenues, is a wholesaler of IT products across several categories, including IT systems, peripherals, system components, software and networking equipment.

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The remainder of sales was derived from its distribution segment, which is comprised of 19 company-owned and 22 joint venture distributors that services and supplies its products to end-users in North America and numerous global markets, including Australia, Europe, the Middle East, India, China, Africa, Brazil and Japan.

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The Distribution and Retail Business segment manages home centers and shops that sell tools, hardware, daily necessities, do-it-yourself products, gardening and building materials, and pet supplies.

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In India, however, there is no single nationwide retailer serving this market segment, so Essmart is developing an innovative distribution method that makes use of catalogs and online ordering in mom-and-pop shops.

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However, heavier, less urgent and low value per pound shipments will increasingly shift towards the sea route as companies thrive to manage their total distribution costs efficiently, which would limit the growth in air freight segment.

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We are working further on our plans to transition our distribution to more online in the consumer space and are adjusting our messaging in the Institutional segment to give it a more distinct identity within the general Rosetta Stone brand.

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