RS Components puts focus on private label business
RS Components is reenergising its private label business. It is relaunched today (February 1) as a separate business unit under the RSPro brand with its own President, the recently appointed industry veteran Kurt Colehower. He will look to grow the business globally while expanding the product range which will encompass a wide range of industrial and electrical products including tools, consumables, test and measurement and automation.
Quality and value will be the watchwords.
“All the products will be tested and released under an RSPro Seal of approval which represents leading industry approvals for audit, test, inspection and certification,” said Colehower.
“We will offer a single value proposition,” he continued. “It will be an alternative to premium brands and low-cost products.”
Last year the RS private label products contributed £162m to the parent company Electrocomponents revenues. It boasted a range of 40,000 products and a 250,000 strong customer base.
It is described Electrocomponents Chief Executive Officer, Lindsley Ruth as “a hidden gem which had been neglected.”
Tools and consumers represented the greatest volume of sales at 40%.Test and measurement contributed 26% . IP&E and Automation both made up 17% of sales.
Over 60% of the products come from key suppliers to RS, providing fertile ground for what Colehower calls a “win-win situation for us and them.” In parallel Colehower will extend the product range giving new and small suppliers access to a global market.
“We will fill out the industrial products range and put some focus on electronic components and target vertical markets such as medical where we can supply accessories that support premium products in that market.”
The RSPro products will be sold by RS Components in Europe and Asia/Pacific and Allied Electronics in the US. Their websites will promote the RSPro brand, and this says Colehower will make it easier for customers to order products online.
He reckons that the RS private label products have a 12.5 per cent market share and his target is to challenge competitors who currently hold a 20 per cent share.