Chinese electronic components, especially PCB(Printed circuit board) business in China expect continued revenue growth of 30% from 2012- 2013. Despite ongoing economic pressures in the global market. This is among the findings of the 13th Annual Electronic Components Distributor Survey announced today by Electronics Supply & Manufacturing-China (ESM-China). A leading electronics management title published by Global Sources’ joint venture, eMedia Asia Limited.
Surveyed distributors reported an average 18% revenue growth in 2012. With key markets in consumer electronics, industrial electronics, and networking systems. This year, focus markets include security surveillance, medical electronics, smart grids, and LED PCB lighting (aluminum-based PCBs).
The survey involved 126 senior managers from leading Chinese component distributors and 2,274 procurement managers from electronics manufacturers. Aiming to analyze current challenges and future strategies.
In 2012, Chinese manufacturers spent 197 million yuan on components, with 61% sourced from distributors—a 7% increase from 2011. Additionally, 69% plan to raise distributor procurement shares in 2013.
Manufacturers are deepening ties with distributors due to enhanced value-added services. For franchised distributors, top services were technical support (49%) and small-batch procurement (28%); independent distributors excelled in hard-to-find component sourcing (54%) and small-batch procurement (37%). In technical support, reference designs (71%) and field application support (70%) were most in demand.
Key Considerations in Distribution Partnerships
Product quality leads as the top criterion (49%) in choosing distributors for electronic components in China, followed by price (34% for franchised, 37% for independent) and delivery times (23%/32%). Manufacturers cite unstable quality, long lead times, and uncompetitive prices as key pain points.
ESM-China Publisher Brandon Smith stated: “Distributors’ support maintains our survey as an industry benchmark. Despite global headwinds, they show cautious optimism for China’s 2013 market. In line with manufacturers’ plan to boost component purchases from distributors.”
Market Trends & Digital Shift in Electronic Components
Softening demand was distributors’ main 2012 challenge, addressed by expanding new markets, customer bases, and marketing efforts.
Online transaction shares in 2012: 11% for franchised distributors (up 2% from 2011) and 20% for independents (flat), reflecting diverse digital adoption in Chinese electronic components distribution.
