With 87% expecting double-digit revenue growth in 2011. On average, electronic components distributors in China forecast a 27% increase in revenue this year. This optimism is echoed by China's electronic components manufacturers.
After a bumper year in 2010, which saw revenues of China's electronics components and information industry increase by 24.1% year-on-year to RMB 6,364.5 billion (US$979 billion), China's electronic manufacturers continue to be optimistic, with 54% planning to increase their orders from electronic components distributors this year in anticipation of continual growth.
A total of 147 senior managers working for leading components distributors in the China market and 1,629 corporate, purchasing and procurement managers from China's electronics manufacturers participated in this year's Survey, which looked into their current challenges and plans for the future.
In addition to electronic component shortage, franchised and combination distributors are wrestling with fierce competition (54%), dropping profit margin (41%), rising costs (28%) and suppliers' changing channel management strategy (25%). To counter these challenges, they are developing new application markets (51%), developing new brands (38%), increasing marketing activities (28%), expanding sales network (31%) .
And Electronic Components suppliers said the quality is top priority and must.
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