Premier Farnell, RS and Digi-Key focus in web sales
Premier Farnell has joined fellow catalogue distributors RS and Digi-Key in reporting dramatic growth in its Internet business in all the major markets of the world.
Farnell said last month that its Internet business increased by 49 per cent in American markets in the fourth quarter of the year.
The distributor said the “momentum from the implementation of the new web front end across the business continues to build” with fourth quarter web sales up 38 per cent and total e-commerce sales accounting for 29 per cent of total sales in the fourth quarter.
In Europe during January, Farnell’s online activity accounted for 43 per cent of total sales.
Similarly excited about the online business is RS Components which has said it could be deriving half its sales from the Internet within 12 months.
RS has been selling products through its websites for over 10 years. The volume of online sales has been growing steadily and today accounts for over 42 per cent of the overall business, said Klaus Goeldenbot, UK general manager at RS.
“I can see the online business reaching the 50 per cent mark before the end of the next financial year,” Goeldenbot told EW.
In some parts of the world web sales have already overtaken traditional telephone sales. “Take Japan the figure is over 75 per cent,” said Goeldenbot.
US-based online specialist Digi-Key continues to lead the field in growing its Internet business. It reached the 50 per cent online sales milestone sometime last year.
Mark Larson, president of Digi-Key, has told EW that an online business accounting for 70 per cent of all sales was “achievable.”
Farnell also sees some country markets moving faster to Internet-based buying and already passing the 50 per cent mark. “In some country markets the proportion of online business is already over 50 per cent,” said Harriet Green, CEO at Premier Farnell.
Green conceded that this growth in the online business was changing the way the distributor operates, but she still sees Farnell’s catalogue, telephone sales and direct sales channels as being strategically important.
Likewise, Goeldenbot insisted that growth in the online business this does not mean that the distributor’s print catalogue is becoming less important. “The catalogue is still our most important route to market and our commitment to it is as strong as ever,” said Goeldenbot.
Despite challenging market conditions, Farnell’s full year sales from continuing operations were 3 per cent up on last year. RS, which has been re-focusing on its electronics business for the last 18 months, reported a 7 per cent increase sales in the six month to September.
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