This distributor of electronic components and cloud-based enterprise computing technology and services grew sales in 2016 thanks to its digital focus and Internet of Things offerings.
"Our digital transformation and IoT solutions spanning from the sensor to sunset contributed to record full-year sales and earnings per share," Michael Long, president, and CEO said. Customers value our comprehensive offering of electronic components, embedded computing, data center, cloud, and reverse logistics solutions."
A sensor to sunset is Arrow's Internet of Things (IoT) strategy designed to provide customers with IoT products and services ranging from internet-connected sensors for connectivity to asset retirement, Arrow Electronics reseller says. eVolve's IoT technology and electronic component sales helped boost total revenue 2.3% to a record $23.83 billion in fiscal 2016. Arrow electronics catalog has a wide range of products.
Long told analysts on Arrow's year-end earnings call that customers need platform solutions in an increasingly digital world. “They want solutions that will enable them to capture the benefits of IoT and generate new revenue streams.”
Long said Arrow electronics distributor meets these needs by investing in engineering and technical capabilities as well as acquiring companies. Among its strategies, last year was to form stronger relationships with design engineers by acquiring media sites and partnering with crowdfunding sites. Arrow electronics data feed will eliminate the need to manually upload the catalog.
Arrow June acquired from UBM a portfolio of media sites focusing on technology, such as EE Times, TechONline.com, and Datasheets.com. Arrow says it owns more than 45 engineering-related media properties and will allow advertisers to reach engineers via ads that link to eCommerce sites.
Arrow Electronics distributors have been investing heavily in the web and eCommerce over the past five years. It also announced in August a partnership with Indiegogo that enables entrepreneurs to access online help from Arrow specialists and earn an "Arrow Certified" badge ensuring that their products can be manufactured.
Our digital business includes sales through Arrow.com, our main eCommerce site, and our other online channels, which include Chip 1 Stop for electronic components and semiconductors; Richardson RFPD for radio frequency, wireless, energy, and power products, at Richardsonrfpd.com; and Arrow's China-based Electronics and Software distributor SEED, or Special Electronic Equipment Device.
Long said, "The returns from those investments are starting to grow and will continue to do so throughout 2017 as the majority of the costs are already in place." Our customer count has now reached 125,000, up from 100,000 customers in recent years. Digital is clearly the main source of customer growth."
Arrow Electronics eCommerce integration has plenty of benefits. Arrow doesn't report online sales, but digital sales are accounting for a bigger portion of sales growth, and there's more to come, Long said. The digital business is growing at something like 35% or 36%, pretty much quarter in and quarter out, Long told analysts. "Some quarters it's even bigger."
Arnaldo is an American writer for various digital news publications. After being in the eCommerce industry for more than 15 years, Arnaldo has a good understanding of what it takes to make an eCommerce business successful. He also likes to cover newsworthy events related to business management software, customer relationship management (CRM), and Quoting software