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E-commerce offers opportunities for electrical wholesalers

The electrical wholesale market continued to grow throughout 2014, following growth of 4% in 2013.

Factors supporting the market include growth in specialist markets, product development, demand for additional services and non-core products, and evolving legislation leading to a requirement for higher specification and new types of products, in addition to an improving economic and construction background.

Factors negatively affecting market growth include wide-ranging government spending cuts, continued low levels of construction, increased price competition, a growing threat from competitive channels and longer product life-spans that reduce the replacement market. 

AMA Research director Keith Taylor said: “As contractors’ use of internet channels to source products increases and wholesalers move into more specialist markets, wholesalers may find a reliance on a wide branch network becoming less important and favour central stocking and distribution centres.”

He added that growing use of e-commerce will provide opportunities for wholesalers to sell niche products “more efficiently”.

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