Driving the market

Although US based, its sales are booming around the world. The UK is no exception, with sales more than doubling in the first half of this year, compared to the first half of 2009 – all without a UK presence. Digi-Key's performance is just one element in a rapidly changing distribution market. It doesn't seem too long ago when distribution was a much smaller player in the electronics market. Most sales were handled by the principal's direct sales team and distributors made what they could of the remaining business. As the cost of a direct sales force became too high, manufacturers handed many of their accounts to the distribution sector. Today, there's a range of distribution approaches – from the big broadliners to small specialists via design in companies. And the 'high service' sector companies – which include Farnell and RS Components – are growing alongside this change in the market. Such is their impact that broadliners have developed, or are developing, their own version of the approach. Even though sales of electronic components are currently booming – market researcher Gartner, for one, is predicting 30% growth in sales this year – Digi-Key is well ahead of the industry average and there's not a managing director anywhere who wouldn't trade something near and dear to them in exchange for a similar sales performance.