Identifying distributors in China for one of the largest enclosure manufacturers in the world

The market leader in thermoplastic enclosures turned to ARC Consulting for help in identifying and evaluating potential distributors in China.

We worked closely with the client to define target segments and criteria for potential distributors.

We further supported the client in finding appropriate candidates, establish initial contact to validate the suitability and check interest of further collaboration.

A long list of potential candidates was generated. Given the vast company base, unique screening methods were used to effectively narrow down the candidates into a few optimal alternatives. Face to face meetings were then conducted between the chosen candidates and the client for further negotiations.

Telecoms aerial with equipment in thermoplastic enclosures

The brand is the market leader within its field with only a few distributors in China.

The client aims at the premium segment in thermoplastic enclosures used for protecting electrical and electronic components operating in hostile environments.

With China being under the development of the 5G network, there is a great market potential for the client with increases demand for electrical components where enclosed boxes could potentially be needed to protect those components from the damage of environmental hazards and other hostile environments.

As an initial step, the team opened with a kick-off, setting selection criteria and objectives, developing evaluation framework including questionnaire, knock-out criteria and review parameters.

Secondly, the team conducted a comprehensive screening of suitable suppliers through multiple company bases i.e., looking at suppliers positioned towards the same market as the client.

Thirdly, the team contacted and benchmarked the candidates, creating a short list of potential distributors to be closely analyzed.

  • The 1st round search focused on existing enclosure box manufacture. A master list of nearly 100 distributors in thermal power plant and wastewater industries were contacted, resulting in 4 potential candidates.
  • The 2nd round search focused on distributors in the Telecom industry, since the products could be linked with terminals, optical modules, RF modules, cables and fuses in usage. Over 70 distributors were contacted, resulting in 2 potential candidates.
  • The 3rd round search focused on distributors who currently sells high-end US and European electric component (who shares the similar market position as the client). 21 dealers were contacted with 2 potential candidates.

6 short-listed candidates were ultimately selected. Company profile with a pre-evaluation was compiled for the client’s information. Pre-visits were also conducted before the formal meeting with the client for business negotiation.

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