Unlike an exciting horse race with a photo finish and winners measured by a nose, the listing of top 25 global franchised distributors is more like a sedate trail ride or perhaps pomp-filled parade. In fact, the global franchised distributors that remain in the race in 2016 have remained largely the same, with only one or another dropping back a pace or two.
The only newcomer to the pack is America II Electronics. Although in business since 1989, the distributor in the past has largely focused on the sale of semiconductors and other electronic components as an independent distributor. In the last year or so, the company has shifted its focus from independent to franchised sales and the company now has 66 franchised lines on its card.
"2015 was a great year for America II," said Brian Ellison, president at America II Electronics. "The growth in our franchise lines correlated to rapid growth in our overall business. As we made strategic investments in technology and infrastructure throughout the U.S. and Latin America, we also focused heavily on our supply chain. We closed the year on a positive note and rode a wave of strong momentum into 2016. We're now pleased to announce nine additional franchise lines that allow us to further expand into the Internet of Things (IoT), consumer electronics, industrial, automotive, medical and sustainable energy markets." See an EBN interview with Ellison here to learn more about this shift, as well as the distributors ongoing strategy.
Overall, the Top 25 listing demonstrates a successful year for the industry with the participants achieving an average of 3% growth this year over last. In fact, 19 out of 25 reported increased sales year over year. Excelpoint, which achieved a notable 13.6% rise in sales, gives credit for the growth to higher revenue contributed by the North Asian, Southeast Asian and Indian markets.
Six out of 25 backslid in sales, and Dependable Component Supply dropped from the list. The largest drop came for Electroncomponents (Rank #8), which had sales gains overall as an organization. The downward shift could be related to a recent shift in focus by North American branch Allied Electronics to private label sales (which are not counted in this ranking).
Take a look at the more detailed listing of EBN's top distributor's in the chart below. Let us know what in the comments section which players you are betting on in the coming year. How do you see the race to win customers unfolding in the coming year?
The EBN Top 25 Distributors survey is conducted annually in February 2016 and March 2015 for publication online. The listing ranks electronic component distributors by calendar-year sales. In the few cases, where those numbers are unavailable, fiscal-year sales are used.
The data is collected via questionnaires that are e-mailed to private and public companies worldwide. The information provided is matched against public records; in cases where such records are unavailable, companies are asked to provide a signed letter confirming the numbers. EBN estimates the results for companies that do not complete the questions or that decline to offer letters confirming sales figures. Companies whose numbers cannot be independently verified are not ranked.
Year after year we would often see almost the same industry players topping the charts yet again. This is a rather expected trend because in this sector, that is just how it works. Buyers would stay true to their suppliers once a good rapport has been built. It could take years or a grave fault before a customer is set to change suppliers down the road. Even if prices were to see a spike, the buyers would most likely to stay loyal as long as their personal preferences are met with each order.
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EBN Dialogue enables you to participate in live chats with notable leaders and luminaries. Open to the entire EBN community of electronics supply chain experts, these conversations see ideas shared, comments made, and questions asked and answered in real time. Listed below are upcoming and archived chats. Stay tuned and join in!