Interview: Distribution Channel Structure for Electrical Materials in Asia

background & purpose

Asia is home to some of the world’s fastest-growing economies and has witnessed rapid industrialisation, urbanisation, and infrastructure development, leading to a significant surge in demand for electrical materials. This surge is partly fueled by the demand for consumer electronics, in which the Consumer Electronics market in Asia is anticipated to generate US$472.3 billion in revenue by 2024, with an expected annual growth rate of 3.41% (CAGR 2024-2028). Furthermore, Asia stands as a global hub for the manufacturing and exportation of a wide array of consumer electronics consisting of cell phones, laptops, computers, radios, sound systems, televisions and other electronic components as well as both small and large domestic appliances. 

With the region’s robust economic growth and increasing demand for consumer electronics, entering the Asian market offers businesses the potential for substantial growth and profitability. By strategically positioning products and services to cater to the diverse needs and preferences of Asian consumers, companies can capitalise on this burgeoning market and establish a strong foothold for long-term success. 

Among the myriad of nations in the region, Cambodia, Indonesia, Malaysia, Singapore, and Vietnam emerge as focal points for targeted expansion efforts, each bearing unique attributes that make them compelling destinations for market penetration. To develop a comprehensive business plan, we conducted extensive interviews with potential distributors and key buyers like constructors and developers to gain a better understanding of the influential distribution channels and distributors, which will serve as the basis for our client’s sales strategy.