RS Components, a supplier of electronic,
electromechanical, and industrial components, has managed to remain one
of the top high service catalog distributors despite the economic
downturn. Unlike those companies which, to address cost concerns, have
sought to reduce their inventories, RS has been implementing a strategy
to strengthen its electronics portfolios and e-Commerce offerings.
At present, RS offers an extensive range of over 450,000 products, and serves 1.6 million customers worldwide.
Through its
portfolio expansion strategy, the company has added 120,000 products
since the start of 2009. The response from customers has been positive,
prompting the company to continue this move throughout the year. The
company has also added further functionalities to its Website, a
channel for its e-Commerce sales, which represents approximately 40% of
RS Group's sales. "RS has realigned its business around the
opportunities to best serve our vast customer base, and has also been
moving more aggressively into the electronics sector," said Ian Mason,
CEO of RS Components. "The short-term outlook does not worry us; we are
focusing on our long-term strategy."
According to Mason, the Asia-Pacific region is the fastest growing market for RS. The China market, in particular, has been expanding consistently, with double-digit growth. Mason attributes this to the fact that China is putting more emphasis on R&D; and customers in China are starting to be aware of the benefits of having a single-source catalog distributor.
Mason is positive about the Asia market, and believes it will outgrow all other semiconductor markets; and China, as the leading market in Asia, will continue to grow as it continues to produce a widening variety of consumer electronics products, and to install new infrastructure in sectors such as telecoms.
Green electronics has become a major area of interest for semiconductor companies in product development, and design engineers are increasingly adopting green designs in their products. RS claims to offer products that enable designers to create their end-products at lower cost, while reducing the carbon footprint and extending the lifetime of the products. A wide range of products are available to engineers joining the trend to design green products, said Mason. He added that RS "will make sure engineers can get their hands on the latest products really quickly in the small quantities that they need - which is our basic value proposition."
Meanwhile, the company has been recognized by manufacturers for its ability to reach design engineers, and has been used as a channel to bring the latest green products to market.
R&D is another key area of focus in the semiconductor industry. Factors such as increased sophistication in R&D, and "high-mix, low-volume" production of higher value-added products/equipment, help create a higher demand for component distribution. In addition, ever-shorter product life cycles enable products to enter the market more quickly, yet these products are still required to incorporate the latest technologies. As a "hypermarket" for engineers, the company's catalog distribution model is capable of fully satisfying these demanding market needs, according to Mason.
Mason believes that the main growth driver for the semiconductor
industry will be the further penetration of electronic products into
the daily lives of consumers. RS believes that its strong financial
status and position as the top catalog distributor in Asia will allow
it to continue to invest, and to respond to market changes flexibly.
With such a solid foundation, RS says it is prepared for the upcoming
growth cycle.
ompiled by Flora Kam
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