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TMCNet:  China electronic components distributors expect average revenue growth of 23 percent in 2013

[May 30, 2013]

China electronic components distributors expect average revenue growth of 23 percent in 2013

SHENZHEN, May 30, 2013 /PRNewswire via COMTEX/ -- Electronic components distributors in China expect continued revenue growth of 23 percent in 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' (NASDAQ: GSOL) joint venture, eMedia Asia Limited.

(Logo: http://photos.prnewswire.com/prnh/20030303/LNM011LOGO-b ) Surveyed distributors indicated an average revenue growth of 18 percent in 2012, with main markets being consumer electronics, industrial electronics, and networking and communications systems. This year, the markets of note are security and surveillance, medical electronics, smart grid and LED lightings.

A total of 126 senior managers working for leading components distributors in China and 2,274 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.

On average, China manufacturers purchased 197 million yuan worth of components in 2012, of which 61 percent were from distributors. This represented a 7 percentage point increase compared with 2011. Additionally, 69 percent of the manufacturers indicated that they would further increase the proportion of components purchased from distributors in 2013.

Manufacturers are deepening their relationships with distributors due to the latter's increasing capability to deliver value-added services. For franchised distributors, the most valued services are technical support (49 percent) and small-volume procurement (28 percent); for independent distributors, the most valued services include sourcing of hard-to-find components (54 percent) and small-volume procurement (37 percent). For technical support, reference design (71 percent) and field application support (70 percent) are most in demand.

Manufacturers choose by quality and price Product quality remains the prime consideration when choosing distributors (49 percent), followed by price (34 percent for franchised distributors and 37 percent for independent distributors) and delivery lead times (23 percent and 32 percent respectively).

Unstable quality, long delivery lead times and uncompetitive prices are China manufacturers' major issues when working with distributors.

"Thanks to the continued support from local and international distributors, ESM-China's annual Survey continues to provide a strong and credible barometer of the industry. Despite the challenging global economic environment, these distributors remain cautiously optimistic about the China market in 2013. This is in line with manufacturers' plans to increase the ratio of components purchased from distributors," said ESM-China Publisher, Brandon Smith.

Softening demand was the main challenge facing distributors in 2012 which they addressed by developing new application markets, expanding customer base as well as strengthening marketing activities.

The proportion of online transaction in 2012 was 11 percent for franchised distributors (2 percentage points higher than 2011), and 20 percent for independent distributors (unchanged from 2011).

China's most preferred components distributors revealed The Survey also revealed the most preferred components 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, CEAC, Comtech Group, Fortune Techgroup, Honestar Electronics, Interine Electronics, Mornsun Electronics, Powertek Group and Shenzhen Sekorm Advanced Technologies.

-- Top 10 Most Preferred Overseas Franchised Distributors: Arrow Electronics, Avnet, Cytech Technology, Excelpoint Systems (HK), Future Electronics, HK Baite (Group), Jetronic Technology, Mouser Electronics, WPG Holdings and WT Microelectronics.

-- Top 5 Most Preferred Independent Distributors: Advanced MP, America II, Ample Solutions, Mogultech International and Pioneer Electronics.

-- Top 5 Most Promising Distributors: Hi-Hone, Sigma Technology, Skysoon Communication, Weltronics Component and Willas-Array Electronics.

-- Top 3 Rising Star Distributors: Infinitrue Technology, RightIC and Shenzhen Shenmei Technology.

-- Top 3 Best e-Commerce Distributors: Beijing Excellent Communication Technology, Lierda Science and Technology, and RS Components.

-- Top 3 Best Technical Support Distributors: DXY Technology, Fengbao Electronic and Guangzhou ZLG-MCU.

-- Top 3 Best Logistics Service Distributors: Majestic Trading Development, Mission Electronics and Vadas International.

-- Analyst's Choice -- Outstanding Executive of the Year: Charles Tan, Vice President of Future Electronics Asia Pac For more information on the 13th Annual Electronic Components Distributor Survey, please contact Cindy Hu, Chief Analyst of ESM-China at cindyhu@esmchina.com or read the detailed Survey reports at www.emrgresearch.com.

For more information about Global Sources, please visit our corporate site (http://www.corporate.globalsources.com). You can also view our latest developments on Facebook and Twitter (/globalsources).

About Global Sources Global Sources is a leading business-to-business media company and a primary facilitator of trade with Greater China.

The core business facilitates trade between Asia and the world using English-language media such as online marketplaces (GlobalSources.com), print and digital magazines, sourcing research reports, private sourcing events, trade shows, and online sourcing fairs.

More than 1 million international buyers, including 95 of the world's top 100 retailers, use these services to obtain product and company information to help them source more profitably from overseas supply markets. These services also provide suppliers with integrated marketing solutions to build corporate image, generate sales leads and win orders from buyers in more than 240 countries and territories.

Global Sources' other businesses provide Chinese-language media to companies selling to and within Greater China. These services include online web sites, print and digital magazines, seminars and trade shows. In mainland China, Global Sources has a network of more than 30 office locations and a community of more than 4 million registered online users and magazine readers of its Chinese-language media.

Now in its fifth decade, Global Sources has been publicly listed on the NASDAQ since 2000.

About eMedia Asia Limited eMedia Asia Limited is a joint venture between Global Sources (60.1%) and United Business Media's EETimes Group (39.9%).

eMedia Asia provides 500,000-plus technology decision-makers throughout Asia and China with access to a multichannel media network. Through its technical events, publications and online network, eMedia Asia leads in providing the region's electronics community with the business and technical information they need to remain competitive.

Press Contact in Asia Investor Contact in Asia Camellia So Connie Lai Tel: (852)-2555-5021 Tel: (852)-2555-4747 e-mail: cso@globalsources.com e-mail: investor@globalsources.com Press Contact in U.S. Investor Contact in U.S.

Brendon Ouimette Cathy Mattison Tel: (1-480)-664-8309 LHA e-mail: bouimette@globalsources.com Tel: (1-415)-433-3777 e-mail: cmattison@lhai.com SOURCE Global Sources http://rt.prnewswire.com/rt.gif NewsItemId=HK22108&Transmission_Id=201305300430PR_NEWS_USPR_____HK22108&DateId=20130530

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