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Sunday 5 July 2009
Business
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Distributor says web sales will hit 50 per cent
Tuesday 20 March 2007
Premier Farnell could see as much as half its sales coming from online business within three years, said CEO Harriet Green.
According to Green, the distributor has a strategic goal of building online business to over a third of the total within three years. “But my personal goal for the company is 50 per cent,” Green told EW.
The distributor’s online business, which includes sales from its websites, accounts for 25 per cent of total sales. The rump of sales is still derived from traditional channels such as the print catalogue, telephone and direct sales.
“The online business is growing quickly. In Europe it is up 42 per cent year-on-year,” said Green.
But Green made it clear that the firm’s print catalogue was and would continue to be a strategically important route to market. “Even in China we are finding engineers who prefer print to online,” said Green.
The distributor is setting its sights on its markets in China and eastern Europe, but sales growth continues in all markets, including the UK.
Sales in the last 12 months increased by eight per cent to £774m. Sales were up four per cent in the last quarter.
“I am confident that our growth targets in Q1 (of the current year) will be met,” said Green.
According to Green, the distributor, which has recently re-branded its European business under the Farnell name, is seeing sales growth in Europe and North America. “UK sales are also growing,” said Green.
But the strongest growth is expected to come from ‘newer’ markets in China and eastern Europe.
Green said the distributor’s strategy to focus on electronic design customers and its investment in the web service is having a positive impact on the business.
According to Green, the distributor has a strategic goal of building online business to over a third of the total within three years. “But my personal goal for the company is 50 per cent,” Green told EW.
The distributor’s online business, which includes sales from its websites, accounts for 25 per cent of total sales. The rump of sales is still derived from traditional channels such as the print catalogue, telephone and direct sales.
“The online business is growing quickly. In Europe it is up 42 per cent year-on-year,” said Green.
But Green made it clear that the firm’s print catalogue was and would continue to be a strategically important route to market. “Even in China we are finding engineers who prefer print to online,” said Green.
The distributor is setting its sights on its markets in China and eastern Europe, but sales growth continues in all markets, including the UK.
Sales in the last 12 months increased by eight per cent to £774m. Sales were up four per cent in the last quarter.
“I am confident that our growth targets in Q1 (of the current year) will be met,” said Green.
According to Green, the distributor, which has recently re-branded its European business under the Farnell name, is seeing sales growth in Europe and North America. “UK sales are also growing,” said Green.
But the strongest growth is expected to come from ‘newer’ markets in China and eastern Europe.
Green said the distributor’s strategy to focus on electronic design customers and its investment in the web service is having a positive impact on the business.
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