Virtually all product suppliers, both global and local, approach general partnerships as the sales channel to reach local markets. The supplier structure varies to a certain extent between the product areas, because design content and level of standardisation differs in the various product areas.
At present, there is also a move towards consolidation among suppliers. The number of suppliers is reducing, at the same time as the product range is increasing. The trend is clearest within the electrical sector. The explanation for this is that electrical products are standardised to a greater extent than other products by legislation, regulations and the market’s design preferences.
Increased consolidation in the supplier stage leads to increased geographical distance between suppliers and the end customer, which contributes to a strengthening of the trading company’s role in the market.