Canadian Electrical Wholesaler

Marketing

December 4, 2017

The advent of Amazon Business has motivated many distributors to consider the implications of ecommerce, and make investments. To better understand the state of eCommerce within construction and industrial trades, Channel Marketing Group asked distributors for input on their own eCommerce initiatives, as well as how they see Amazon Business as a competitor. Part 1 presented highlights from the report’s overall ecommerce findings. Here in Part 2: Amazon’s influence on eCommerce.

“Amazon Business is regularly reported as a US$1 billion company,” say the study authors, “and we have heard comments that they have surpassed US$2 billion as well as that they are actively targeting the MRO market with a focus on industrial supplies.”

The authors identify at least six different threats to distributors posed by this new “channel”:

  • alternative order entry system for some customers and their distributors
  • standalone business… for a new industry entrant or an existing business
  • direct channel for manufacturers… under their brand or another name
  • means to do business in a broader geographic areas for an existing organization
  • means to offer different products via a marketplace arrangement
  • information resource

“The question becomes, ‘Is this a threat, a complement to the existing business, a new opportunity, or something to be aware of and combat if your business time frame is short-term?’”

Among the questions about Amazon Business that the authors asked distributors in the survey was this: “On a scale of 1 to 10, with 10 being high, how much of a threat to your business — defined as sales that will go from you to Amazon or another "non-distributor" in your industry — do you think eCommerce will be?”

On a weighted average basis, the threat level was perceived as “average.” The authors interpreted this as “credible but not core,” or as “credible but not much of 'my' business,” or “credible but I can adapt.“

Distributors were also asked, “Do you have customers who have told you that they have purchased from Amazon Business?” The response: 61% said they have customers who have purchased some material via Amazon Business.

Asked, “Why do your customers purchase from Amazon Business,” distributors most often responded replied ease and price. However, those were only two of eight reasons.

The study also looked forward, asking distributors what percentage of their business they see Amazon representing. Results varied.

With survey results in hand, the authors then made a series of key value-added observations, and shared e-commerce experiences of individual survey participants. Among the findings: “all consider eCommerce as a retention tool and hope to generate growth through account penetration. Very few also considered it a customer acquisition tool.”

Verbatim experiences of respondents were captured in an appendix. Here’s just one example from a proponent of cCommerce:  “There is always a strong ROI when a company invests in technology to both automate the order capture process from the customer and also integrate those orders into their ERP. Companies that fail to take this step will operate at lower overall profit levels and.”

This is just a sampling of Amazon-related findings in The Channel Marketing Group’s report, “The State of eCommerce Within the Construction & Industrial Markets.” Read more findings in Part 1 www.canadianelectricalwholesaler.ca/latest-news/1876-new-report-ecommerce-within-the-construction-and-industrial-markets-part-1

Find out more about the Channel Marketing Group report: www.electricaltrends.com/2017/10/distributor-perspective-of-state-of-ecommerce-research-report.html

Channel Marketing Group develops market share and growth strategies for manufacturers and distributors and develops market research. CMG’s specialty is the electrical industry. President David Gordon authors an electrical industry blog, www.electricaltrends.com. He can be reached at 919-488-8635 or This email address is being protected from spambots. You need JavaScript enabled to view it..

 

Hubbell

 

The University of Strathclyde in Glasgow, Scotland has named Hubbell Lighting executive licensee of a technology that can suppress bacteria in the air and on surfaces using a narrow spectrum of visible light. The high intensity narrow spectrum lighting technology has been shown to reduce bacterial pathogens in the environment at a far greater rate than cleaning and disinfection alone.

“Our agreement with Hubbell Lighting opens the door for the food and beverage industry and other sectors to benefit from our continuous disinfection technology, helping them keep consumers even safer,” says Scott MacGregor, vice-principal of the University of Strathclyde and leader of the research team that developed the technology.

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Study


A confirmation: the winds of change are now howling.

Several years ago, in a workshop at Electro-Federation Canada’s annual conference, a roundtable session described and debated the numerous disruptive technologies that are forcing us to think differently.

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Michael Gentile, President and CEO of Philips Lighting Canada, has had a long and distinguished career in the electrical industry and more recently the lighting industry. None of this is by chance. Always in decision-making circles since beginning his career, Michael spends the first 10 years first at Siemens, and subsequently in lighting at Osram as Vice President Finance and Vice President Sales and Marketing. After that, he joins Philips Lighting.

Michael agreed to share a few moments with us to discuss his career trajectory, the industry, trends, worries, and wishes. A tour of his career is also a tour through a key period in the industry and a reflection of its adaptability to new technologies — from an expert's point of view.

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Changing Scene

  • Prev
Flextherm Celebrates 25 Years With a Big Bang PHOTO: EIN-37/CEW-18-CS-Flextherm-400.jpg The floor ...
Electro-Federation Canada’s 6th Annual Future Forum, Thinking Smarter — Channel Products, Energy, ...
In partnership with Habitat for Humanity Québec, Convectair is donating two heating units ...
Do you know an industry member who has greatly contributed to the Canadian electrical industry and ...
Kendra Smith will be joining the company’s Nationals Accounts team as the Key Accounts ...
Blueway has been added as a division within Sonepar Ontario, reporting directly to Sonepar Ontario ...
Pilz Canada has added Marcus Graham to its family. Marcus is now serving a wide base of customers ...
Christopher Balleine has been appointed Stelpro’s Sales Representative, Maritimes, ...
Based in Ottawa, Lafontaine will be responsible for building on Schneider Electric’s ...
Bill Smith from Electrozad Supply Company Limited has been selected as this year’s recipient ...

Peers & Profiles

  • Prev
Sales of electrical supplies from full-line electrical distributors capture the geographic ...
I've known John Sencich since CEW began publishing. He agreed from the outset to be part of the ...
Laura Dempsey has been working as an outside sales representative for E.B. Horsman & Son for ...
Michael Gentile, President and CEO of Philips Lighting Canada, has had a long and distinguished ...
Gordon MacDonald is a cheerful, driven individual who loves to be challenged, a trait that suits ...
  Jordan Prins is an account manager at Wesco Distribution in Abbotsford, British Columbia. ...
Mike Marsh, President and CEO of SaskPower, has been a leading figure in Saskatchewan’s electricity ...
I didn’t wake up one day and go, “I want to work for my dad!” Actually, it was ...
    Ouellet Canada is celebrating 50 years in the Electrical Heating ...
  On February 27th Lumen opened their 36th branch in Ottawa, Ontario. ...

Laura Dempsey

Owen Hurst

Laura Dempsey has been working as an outside sales representative for E.B. Horsman & Son for over 15 years, and is a member of the BCEA U40 network of young professionals. She lives in Langley, BC and is proud of her position and work with E.B. Horsman, particularly as she is the second Dempsey generation to work for the company.

Laura’s mother Shelly has worked at E.B. Horsman for over 25 years, and instilled in Laura a determination to succeed. Laura followed in her mother’s footsteps after witnessing how much her mother enjoyed her work and the people she works with at E.B. Horsman.

Read more: Laura Dempsey

Laura Dempsey

Line Goyette

I've known John Sencich since CEW began publishing. He agreed from the outset to be part of the newsletter’s Editorial Board. His contribution was regular and sustained. Always present to answer my technical questions, and refer me to the right person for additional information as needed. Always available despite his role as senior leader of an influential company.

Over the past five years, many industry insiders have cited John Sencich when I asked them to name someone who had made a difference in their lives or had inspired them as a leader.

Read more: John Sencich

Looking Back

  • Prev
  As 2017 marks the 150th anniversary of Confederation, we take a look back at an aspect of ...
The resource-based industries of the Maritimes are looking to electronics to make their operations ...
  Electrical distributors must remain in both the electronic and electrical ends of the ...
  The public’s strong interest in energy-saving products should continue in the ...
  Even in a principally agricultural province like Saskatchewan, the impact of electronics ...
Electrical distribution companies operating in British Columbia will continue to get larger while ...
Golden anniversaries are celebrated by the mature, and our industry is allowed to celebrate ...
The last 50 years have been exciting ones for the electrical industry but they won’t compare to ...
The ceiling that had been placed on membership fees remained a point of contention among ...
The year 1982 started on a relatively good note for electrical distributors. Sales in the first ...

DIgitalDigitalization is set to take a strong hold of all business models, transforming how companies access, monitor, engage with and service customers. Today’s customers are not passive consumers; they rely on real-time digital access to information to make purchasing decisions. Businesses must consider how to apply digital technologies and digitized data to connect with customers to help reshape their paths to purchase. This digital lens provides improvements to business functions, operations and overall processes by creating stronger insight and knowledge so businesses can take action.

The path towards digitalization has put the electrical supply channel at an important crossroad: the entire electrical value chain (suppliers, manufacturers, distributors, customers) will need to strongly consider how to move from a traditional model that has served the market well for decades, towards a new model that is connected, smart and highly efficient. But how does the industry evolve from a traditional model to an integrated ecosystem?

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EFC 2018 Scholarship Program

This year Electro-Federation Canada (EFC) will award $156,250 across 62 scholarships supported by manufacturers, distributors and associations.

The annual EFC Scholarship Program reflects an industry that understands its responsibility to attract future talent. In the face of technological, demographic, and socio-economic evolution, the employment landscape is in constant transformation resulting in substantial challenges for companies as they work to define and redefine their recruitment practices. Furthermore, as competition for the brightest and the best of the next generation of business leaders intensifies, it’s more important than ever to engage young people. 

Read more...

 

Copper $US Dollar price per pound

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