SHENZHEN, June 6, 2012 - China's electronic components
distributors are expecting strong revenue growth of 30
percent in 2012, despite economic pressures across Europe
and North America. This is according to the results of the
12th Annual Electronic Components Distributor Survey
announced today by Electronics Supply & Manufacturing-China
(ESM-China), an electronics management title of Global
Sources' joint venture, eMedia Asia Limited.
Growth is being fueled by robust demand for components used
in smartphones, LED lighting, power generation, portable
medical electronics and hybrid vehicles.
China's electronics manufacturers confirm this positive
outlook, with 51 percent of surveyed manufacturers planning
to increase their orders from distributors. In 2011, they
purchased a total of over RMB400 billion of components. On
average each bought RMB207 million worth of components from
their distributors, representing 54 percent of their total
component purchases.
A total of 137 senior managers working for China's
leading component distributors and 1,980 corporate,
purchasing and procurement managers from China's
electronics manufacturers, participated in the Survey -
which aims to take an in-depth look into their current
challenges and future strategies.
Manufacturers value distributors' services
Apart from ordering components, manufacturers are deepening
their relationships with distributors due to the
latter's capability to deliver value-added services
such as technical support, small volume procurement,
sourcing of hard-to-find components and logistics services.
Manufacturers, however, are selective with the distributors
they work with. Product quality remains the prime
consideration when choosing franchised (61 percent) or
independent distributors (59 percent), followed by price
(43 percent).
Untimely delivery and longer delivery lead times are China
manufacturers' major issues when working with
distributors. To overcome these timing issues, distributors
are carrying more inventory than ever. In 2011, only 43
percent carried at least four-week worth of inventory while
this year, 70 percent of the surveyed distributors plan to
do so.
ESM-China Publisher, Brandon Smith, said: "The
ESM-China Distributor Survey is a good measure of the
industry's pulse. Despite softening global economies,
surveyed distributors remain optimistic in 2012 and the
Survey results outlining manufacturer purchasing
expectations tend to correspond. The good news is that
distributors are finally beginning to develop the
combination of product quality, price and service that
their customers expect."
Distributors look to new markets, brands
The Survey also outlines distributors' topmost concerns
being aggressive competition, declining profit margins and
mounting operational cost. To overcome these challenges,
they are adopting multiple strategies including developing
new application markets (59 percent), carrying new brands
(32 percent), increasing their marketing activities (31
percent) and offering more extensive technical support
(28 percent).
China's most preferred distributors announced
Further, the Survey revealed the most preferred component
distributors, as voted by managers of China's
electronics manufacturers. Winners of each category (in
alphabetical order) are:
-
Top 10 Most Preferred Local Franchised Distributors:
Asiacom Technology, Burnon International, China
Electronic Appliance Shenzhen, Comtech Group, Fengbao
Electronic, Guangzhou ZLG-MCU, Honestar Electronics,
Interine Electronics, Mornsun Electronics and Secom
Telecom.
-
Top 10 Most Preferred Overseas Franchised Distributors:
Arrow Electronics, Avnet, Cytech Technology, Excelpoint
System (HK), Future Electronics, HK Baite (Group),
Jetronic Technology, Mouser Electronics, Willas-Array and
WPG Holdings.
-
Top 5 Most Preferred Independent Distributors: Advanced
MP, America II, Compo Electronics, Mogultech
International and Pioneer Electronics.
-
Top 5 Most Promising Distributors: Ample Solutions,
Hi-Hone, Powertek Group, RightIC and Vadas International.
-
Top 3 Best e-Commerce Distributors: ICKEY, RS Components
and Shenzhen Shenmei Technology.
-
Top 3 Best Technical Support Distributors: Beijing
Microseen Technology, DXY Technology and Richardson RFPD.
-
Top 3 Best Logistics Service Distributors: Mission
Electronics, North Technology and Sigmatek.
-
Editor's Choice - The Manager of the Year: Simon Yu,
President of Arrow Asia Pacific Components.
For more information on the 12th Annual Electronic
Components Distributor Survey, please contact Cindy Hu,
Chief Analyst of ESM-China at cindyhu@esmchina.com.
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