Digi-Key surpasses $1 billion in annual worldwide sales
Digi-Key Corporation is officially a billion-dollar company.
The electronic components distributor, recognized for having the industry’s broadest selection of electronic components available for immediate shipment, today announced it surpassed $1 billion in worldwide sales in 2010. While the company anticipated reaching this milestone in 2010, the achievement came ahead of schedule.
“Reaching and surpassing $1 billion in annual worldwide sales is a major accomplishment for Digi-Key and one for which we have diligently worked,” said Mark Larson, Digi-Key’s president and COO. “Digi-Key has grown by an average of 15% each year since 1987. This is real, organic growth – not the result of acquisition, but growth based on Digi-Key’s expanded reach to customers around the globe.”
The privately held electronic component distributor was on track to reach $1 billion in sales in 2008 before the global economic recession caused sales to decrease in the last half of the year. Despite the economic downturn and a decrease in sales of nearly 6% for 2009, Digi-Key gained market share in the down market. Some of Digi-Key’s publicly held competitors experienced far greater sales decreases, making it more difficult for them to ‘bounce back’ when the economy began to revive.
“Digi-Key gained market share in the down market of 2009 because our decrease in sales was about half that of the electronic distribution industry. Digi-Key is gaining share in the up market of 2010 as our sales increase at a rate almost twice that of the industry. We are really outdistancing the pack when it comes to gaining market share in this industry,” Larson said.
As of today, Digi-Key’s worldwide sales have increased by more than 75% year over year. The company is projected to reach nearly $1.5 billion in worldwide sales for 2010.
“Much of our sales growth can be attributed to Digi-Key’s expanding presence online,” said Tony Harris, Digi-Key’s chief marketing officer (CMO). “We are targeting several initiatives to give our customers a myriad of resources for product information, education, application, and selection on our website, www.digikey.com, with more to come in the future.”
Digi-Key’s growth is partially attributed to increased sales in Brazil, China, Europe, India, Japan, Mexico, Russia, and other regions around the world.
Below is a list of several countries in which Digi-Key experienced increased sales year over year for January through June 2010:
* Brazil – increase of 68.4%
* China – increase of 342.76%
* Estonia – increase of 99.22%
* Germany – increase of 163.22%
* Hungary – increase of 216.25%
* India – increase of 61.88%
* Japan – increase of 139.92%
* Lithuania – increase of 190.02%
* Mexico – increase of 109.89%
* Romania – increase of 256.34%
* Russia – increase of 119.75%
* Slovakia – increase of 224.97%
* Spain – increase of 137.03%
* Switzerland – increase of 198.91%
* Ukraine – increase of 80.74%
* United Kingdom – increase of 113.71%
Results from the May 2010 EE|Times Distributor Customer Evaluation Study show Digi-Key outranks its competitors in North America as the Most Preferred Distributor for 2010. Study results also rank Digi-Key #1 for Largest Breadth of Product Line, Excellent Website, Ease of Doing Business, Competitive Pricing, Availability of Product, and On-Time Delivery.
“Digi-Key is recognized for having the industry’s broadest range of electronic components available for off-the-shelf delivery. Digi-Key’s ranking as the Most Preferred Distributor verifies this company as an advancing competitor in the electronic component distribution industry,” Larson said. “Digi-Key is now ranked #4 on the list of the Top 15 Distributors for North American Sales based on the April 2010 EDN study. Ten years ago, Digi-Key was ranked #14 on that list. Digi-Key is ranked #8 on the list of the Top 10 Global Franchised Distributors for Worldwide Revenue based on the May 2010 EE|Times study, climbing from #11 four years ago. If that doesn’t prove Digi-Key is a contender in this business, I don’t know what does.”
Digi-Key Corporation focuses on providing customers with superior service, which includes product selection and availability, on-time delivery, and responsiveness. Using leading-edge processes and state-of-the-art technologies, Digi-Key serves a global customer base from its 600,000 square foot facility in Thief River Falls, Minnesota, USA.