Analysis
Digi-Key Corporation is Now a Billion-Dollar Company
The electronic components distributor, recognized for having the industry’s broadest selection of electronic components available for immediate shipment, today announced it surpassed $1 billion in worldwide sales in 2010. While the company anticipated reaching this milestone in 2010, the achievement came ahead of schedule.
ReacThe privately held electronic component distributor was on track to reach $1 billion in sales in 2008 before the global economic recession caused sales to decrease in the last half of the year. Despite the economic downturn and a decrease in sales of nearly 6% for 2009, Digi-Key gained market share in the down market. Some of Digi-Key’s publicly held competitors experienced far greater sales decreases, making it more difficult for them to ‘bounce back’ when the economy began to revive.
Digi-Key gained market share in the down market of 2009 because our decrease in sales was about half that of the electronic distribution industry. Digi-Key is gaining share in the up market of 2010 as our sales increase at a rate almost twice that of the industry. We are really outdistancing the pack when it comes to gaining market share in this industry, Larson said.
As of today, Digi-Key’s worldwide sales have increased by more than 75% year over year. The company is projected to reach nearly $1.5 billion in worldwide sales for 2010.
Much of our sales growth can be attributed to Digi-Key’s expanding presence online, said Tony Harris, Digi-Key’s chief marketing officer (CMO). We are targeting several initiatives to give our customers a myriad of resources for product information, education, application, and selection on our website, www.digikey.com, with more to come in the future.
Digi-Key’s growth is partially attributed to increased sales in Brazil, China, Europe, India, Japan, Mexico, Russia, and other regions around the world.
Below is a list of several countries in which Digi-Key experienced increased sales year over year for January through June 2010:
* Brazil – increase of 68.4%
* China – increase of 342.76%
* Estonia – increase of 99.22%
* Germany – increase of 163.22%
* Hungary – increase of 216.25%
* India – increase of 61.88%
* Japan – increase of 139.92%
* Lithuania – increase of 190.02%
* Mexico – increase of 109.89%
* Romania – increase of 256.34%
* Russia – increase of 119.75%
* Slovakia – increase of 224.97%
* Spain – increase of 137.03%
* Switzerland – increase of 198.91%
* Ukraine – increase of 80.74%
* United Kingdom – increase of 113.71%
Results from a May 2010 study show Digi-Key outranks its competitors in North America as the Most Preferred Distributor for 2010. Study results also rank Digi-Key #1 for Largest Breadth of Product Line, Excellent Website, Ease of Doing Business, Competitive Pricing, Availability of Product, and On-Time Delivery.
Digi-Key is recognized for having the industry’s broadest range of electronic components available for off-the-shelf delivery. Digi-Key’s ranking as the Most Preferred Distributor verifies this company as an advancing competitor in the electronic component distribution industry, Larson said.
Digi-Key Corporation focuses on providing customers with superior service, which includes product selection and availability, on-time delivery, and responsiveness. Using leading-edge processes and state-of-the-art technologies, Digi-Key serves a global customer base from its 600,000 square foot facility in Thief River Falls, Minnesota, USA.