EMR - The European Electrical Wholesale Trade Yesterday - Today - Tomorrow

Store this angel in big sizeThe editor of "electrical business news", Wolfgang Jauch, gave a well-received presentation on the all-embracing electrical broad trade.
Below are some excerpts:

The protagonists in this business are absolute distributors with one or added branches, broad chains such as Rexel, Sonepar, Hagemeyer and buying/marketing groups like Fegime, Idee or Imelco which accomplish at an all-embracing level.

In 2006 the common broad markets for electrical appurtenances amounted to approx. EUR 144 bn. 50% of this was generated in North America, 29% in Europe, 8% in Central and South America, 7% in Asia and the Pacific Rim and 6% in Japan.

Development of sales at chains and affairs groups:

Worldwide Sonepar, Rexel and Hagemeyer accept generated sales of EUR 15.5 bn in 2006. The amount of access in the endure 6 years stands at 36% globally, 26% in Europe and 78% in America.

78% up in America – this is absolutely an absorbing figure, proving how assiduously the big three accept been alive this across bazaar in the endure few years.

The affairs groups Fegime, Idee and Imelco had sales of approx. EUR 11.7 bn in 2006. Overall, these three accept added sales by 46 % in 6 years. The commensurable amount for the chains in Europe stands at “only” 26% - a bright adumbration of the ever-growing acceptation of affairs groups in and for Europe.

The absolute bazaar in Europe was EUR 41 bn. Sonepar, Rexel, Hagemeyer and added broad chains had a 47 % bazaar allotment in Europe.
Internationally operating affairs groups like Fegime, Idee, Imelco boss 38 % of the market.
The actual 15 % of the European block is in the easily of the absolute wholesalers.

Development of the broad barter with branches:

In the endure few years we accept recorded an astronomic acceleration in the amount of branches. In 2000 the chains had almost 330 companies with 3,200 branches. In 5 years, through amoebic advance and acquisitions, over 850 branches accept been added to this number.

Since 2000 the affairs groups accept aswell taken a behemothic footfall forward. 260 added distributors and 1,000 added branches accept been recorded. It can be apparent absolutely acutely that added and added absolute wholesalers are demography apartment beneath the awning of affairs groups. This is a trend which will abide to grow.

Forces of antagonism in the electrical broad trade:

We accept 5 armament of antagonism which acerb access the electrical broad trade.

1. Competition amid absolute rivals
2. Threat of acting articles / services
3. Threat of new competitors
4. Bargaining ability of suppliers
5. Bargaining ability of customers

Growth strategies of chains and all-embracing affairs groups:

The absolute avenue to this advance is demography over or accepting broad companies. Generally this year and the advancing year will be characterized by takeovers, not just in the electrical broad barter but in the industry as well.

The chains will apply a action of careful bounded acquisitions i.e. they will strengthen their position in the regions and countries in which they are already represented and again apply on new markets.
In the burst electrical broad bazaar there is by itself abundant abeyant for takeovers. Regions which today accept simple broad structures compared with Europe and America will become added and added rapidly the centre of interest. Just anticipate of China, India, Brazil and Russia.

The action of the all-embracing affairs groups is basically aimed at accepting absolute affairs groups in as abounding countries as possible. The three big players, Fegime, Idee and Imelco, are alone accordingly represented in Germany, the Netherlands, Italy, Spain, Norway and Poland. In the added countries you alone acquisition one or the other: this agency that every affairs accumulation still has a lot of bare areas on its map of Europe to ample in.

In countries area there are not any affairs groups, partnerships are artificial with above wholesalers who are not associates of chains. In countries in which the accumulation is already represented a added accumulation could be admitted.

Everything credibility to the actuality that the amount of free, detached wholesalers will abide to decrease. They are abutting armament and basic affairs organizations to defended a bigger position.

Electrical and sanitation:

The amount business of the electrical broad barter is electrical items. However, sanitation, air-conditioning and heating articles are added to be begin in the artefact ambit of electrical broad companies.

It is accessible that the electrical and sanitation sectors are growing calm added and more. The aboriginal reason: In appearance of the accretion automation of calm technology it cannot be conveyed to the end chump that these two trades are separate.
The additional acumen is the trade’s efforts to abound sales in markets which are acceptable narrower and narrower.

Electrical wholesalers are demography up sanitation articles into their range. But that is just one ancillary of the coin. The added ancillary is that sanitation wholesalers are aswell rounding off their affairs and demography over electrical wholesalers.

Where will the electrical broad barter angle in 5 – 6 years?

Very about it can be said that there will be takeovers on a admirable calibration in the next few years – in the industry and the trade.

Chains:
The broad chains will abide to abound because the broad bazaar is awful burst which provides a favorable altitude for takeovers.

Sonepar and Rexel will strengthen their position globally, with the focus on the USA, Europe and China.
Hagemeyer will apply rather on Europe, although in the endure few canicule Hagemeyer has been advised as a applicant for a takeover by Rexel.
Solar is apperception on Scandinavia and on accretion its adequacy in sanitation.
Onninen will aggrandize and defended the position it has accomplished so far.

American broad chains are expanding, but not into Europe. Their targets are aboriginal and foremost the USA and Canada, afterwards that Mexico and Latin America and again the Far East.

Individual wholesalers:
Wholesalers with two or three branches will not be able to backpack on in the continued term. If they ambition to abide in business, they have to accompany an absolute affairs accumulation or apply a alcove strategy.

Small and medium-sized affairs groups:
These will no best abide in 5 – 6 years, artlessly because the action of absorption is acceptable faster and faster in Europe.

Internationally structured affairs groups:
With their avant-garde structures and pan-European operations, they clothing the interests of globalized manufacturers. Fegime, Idee, Imelco and, with concessions, Gewa will abide to abound in the next few years. The ample affairs groups will apply on Europe for the accountable future.

Co-operation amid electrical and sanitation associations:

In the next few years there are undreamed-of opportunities for internationally operating buying/marketing groups.
There is a array of possibilities; for example:

a) The civic electrical affairs accumulation opens a new sanitation analysis with associates from the sanitation area
b) The civic electrical affairs accumulation co-operates with a civic sanitation affairs group
c) The all-embracing electrical alignment co-operates with adopted sanitation associations.

The complete arrangement “European Electrical Wholesale Trade
Yesterday – Today – Tomorrow” with over 60 pages, absolute 29 blush tables, argument in English and German, may be ordered for EUR 193 (incl. VAT) through EMR Euro Marketing + Research, Boschstr. 32, D-71336 Waiblingen or info@emr-online.de

EMR Euro Marketing + Research
Boschstr.32
D - 71336 Waiblingen
Tel: +49-7151-379149
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E-Mail: info@emr-online.de

EMR Euro Marketing + Research specialises in bartering casework tailored to the needs of the all-embracing electrical industry.

The analysis »Structures and interrelationships in the all-embracing electrical broad industry«, which appeared for the aboriginal time in 1995, has brought EMR boundless all-embracing recognition. Besides the European survey, the latest appearance accessible are investigations of the electrical broad barter in Canada, Australia, New Zealand and South Africa. The EMR surveys are referred to and quoted in amaranthine publications on the accountable of the internationalisation of the electrical broad trade. Furthermore, the EMR surveys accept aswell for some ample time been accepted works of advertence at a ample amount of acclaimed companies at home and abroad if it comes to sales planning and key-account management.

A new anniversary was accomplished for the electrical industry in 1999.»electrical business account – focus on the all-embracing electrical industry« appeared, the actual aboriginal barter newsletter abnormally about and accurately for the all-embracing electrical industry – an basal aid in the harder antagonism for markets and bazaar shares. Every 3 weeks there are letters about takeovers, trends, business indices, indicators for the industry and about-face figures, strategies of manufacturers and wholesalers in Europe and overseas, in a best of German or English accent versions.

For abounding years now EMR has specialised on analysis, business affairs and action consulting in the apple advanced electrical industry. As a aftereffect we accept developed a ambit of casework which accomplish it easier for all those complex with the industry in any way (manufacturers, wholesalers and institutions) to authorize themselves in all-embracing business or advance their presence. The cornerstones of this new service, »EMR – Connecting Businesses«, are action consulting, bazaar appraisal and business accomplice search.