Tony Harris, VP of e-Commerce and Internet Marketing for Digi-Key, talks to Electronics Weekly about the importance of the Internet for distribution, what proportion of business is online, whether print catalogues will be completely superseded by online activities, and new services the Internet is making possible...
1. How would you characterise the importance of the Internet to your distribution business?
We characterise the Internet as being truly critical to our overall business model and see it as the optimum utility to engage with Digi-Key and our line card manufacturers for component sourcing and purchasing. We have harnessed the power of the Internet to provide meaningful technical content, tools and utilities that enable our customers to do their best work, make their purchases and have those purchases in their hands very rapidly.
2. Is the Internet changing the distribution business, if so in what ways?
Absolutely, the Internet has required our industry to adapt to a new model of communication and bring two very distinct audiences together. Pre-Net Generation (Those born before 1982) and Net Generation (Those born after 1982). The Pre-Net generation adopted a Synchronous face to face at the same time communication model or exchanging information and experiences. The Net Generation has redefined that as being an Asynchronous exchange where the communication is virtual, not at the same time and across multiple platforms.
Our industry used to communicate exclusively to customers via a print catalogue, office visit and phone. We are now communicating via the Internet through multiple channels - blended content websites, online chats, blogs, forums, wikis, Twitter, LinkedIn, Spoke and myriad social marketing and personalised virtual channels. No face to face, very little phone and reduced catalogue interaction.
3. What proportion of your business is online and is it still growing?
Our Internet utilisation in the UK is at 98% and somewhat similar in pattern globally and growing. We operate as a virtual e-commerce company without sales people in the same fashion as some of the more recognised online retailers such as Amazon, Dell or even Apple who are all in the top five global online retailer list.
Our model works very well in the UK and globally as it requires no more from the customer than an Internet connection. The engineering community also enjoys the anonymity they experience by working with Digi-Key as they are able to design in with our products and not be exposed to sales people knocking at their door inquiring about their design, timing and process. They can work when, where and how they need to with us.
4. Cannot you envisage a time when the print catalogue is completely superseded by online activities?
As the Internet has become our primary avenue for business and connectivity with the customer. We have taken steps to reduce our carbon footprint and have strategically reduced and altered the number of catalogues we distribute globally. We believe that the catalogue will continue to play a role in how we interact with our customers. Many of our customers use it as a reference guide in partnership with our portfolio of websites to get the information they need to make their component purchase.
It is paramount that we continually respond to our customer's needs and information requirements and we are confident that our strategic, multi-channel approach with a strong web capability will keep us in the top position in the minds of engineers and purchasing professionals world wide.
5. Are there any new services which the Internet is making possible for the first time for distributors like you?
Certainly, you'll continue to see the rise in customer personalisation of their web experience on Digi-Key's portfolio of websites. Access to EDA tools, tool bars and similar utilities that allow the customer to work real-time and actually consume information and download content directly into their own design and purchasing environments are ever expanding tools and services Digi-Key will offer.
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