Reseller Channels in the North American Plug-In Surge Suppressor Market
1/15/2003 - Resellers play an important role in the plug-in power line surge suppressor industry because, to some extent, they determine whose products end up in the hands of end users. As a result, finding out the methodology they employ when selecting which products to carry, and what kind of support they require from vendors can provide important information to suppliers when setting one's overall marketing strategy. It is also imperative for industry participants to clearly understand which type of resellers hold the largest market share as well as which resellers end users prefer.
According to recent analysis by Venture Development Corporation (VDC), superstores (computer, consumer, and office) accounted for the largest share of shipments to the North American plug-in surge suppressor market (Exhibit 1). Retail continues to remain the most important channel for plug-in surge suppression products despite the gaining market share among distributors and the presence of e-commerce. VDC offers these additional insights into the distribution channels for surge suppressors in North America:
- Hardware and home centers are gaining importance as a distribution channel. Growth among companies like Home Depot, Lowes, and Ace Hardware has significantly expanded this channel.
- Recent growth in sales through mass merchants (Kmart, Sears, Target, etc.) has been strong as end users are purchasing low cost surge suppressors to meet their line extension needs.
- On the whole, suppliers cite retail consolidation as a major concern. With national chains driving (in all store categories) regional chains out of business, there are now far fewer significant accounts for surge suppressor suppliers to chase.
- Computer superstores are expected to become a less important channel for plug-in surge suppressor products over the forecast period. This channel has had well-publicized problems with maintaining adequate margins in the face of competition from consumer electronics stores and other retailers who are selling PCs.
About the Study
This report, "The 2002 Power Protection Market Intelligence Program: Volume IX & X North America & Europe Power Line Surge Suppressors", is a multiclient study designed to provide subscribers with relevant and up-to-date market intelligence to support strategic marketing and product planning decisions. This report includes:
- Forecasts by product categories, major applications, major industries, country, channels of distribution, product features, etc.
- Major issues, technology trends, and end-user needs that affect the future of this market
- Discussion of the industry structure and the influences generated by the various types of participants
- North American and European vendor shipment levels and market share data by product categories
- Detailed profiles on the leading North American and European suppliers of power line surge suppressors
- Recommendations providing insight into current and future market opportunities in this highly competitive marketplace
Venture Development Corporation, a technology market research and strategy firm, was founded in 1971 by graduates of Harvard Business School and MIT. Over the years, VDC has developed and fine-tuned a unique and highly successful methodology for forecasting and analyzing dynamic technology markets. VDC has extensive experience in providing analysis in electronic components markets. This includes multiclient and custom consulting engagements in a broad spectrum of related topics including switching power supplies, uninterruptible power supplies, fuel cells, static transfer switches, and others.
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