An increasing number of small and medium enterprises (SMEs) in India are creating huge job opportunities in the electronics design and manufacturing segment, thus improving the country’s economy. All this will eventually drive the big brands from across the world to come to India for business collaborations. To understand this trend better, Electronics Bazaar spoke to Adam Chinery, MD, Computer Components Ltd (CCL).
Headquartered in the UK, CCL has been providing excess
inventory management solutions for electronic equipment
manufacturers since 1997.
Adam Chinery, MD, Computer
Components Ltd (CCL)
EB: Please give us a brief overview of the electronics industry in the UK.
In 2015, the consumer electronics market declined in volume terms, in the UK, despite economic recovery. Since 2011, GDP has increased steadily, while inflation remains close to zero, generating deflation. Even though this improved consumer confidence, demand did not improve in 2015. Stores struggled, as many devices remained unsold. This was especially the case for printers, monitors, imaging devices and in-car devices. Laptops bounced back, demand for tablets and smartphones continued to increase and wearable electronics boomed, yet, the market as a whole faced difficulties. Nevertheless, there are hopes that innovation will help consumer electronics get back on its feet.
EB: What are the major growth-driving sectors for UK’s electronics industry?
2016 might be the year that marks the rebound for consumer electronics, thanks to connected devices, which play an important role in improving the quality of life. Connected devices are set to reach a mainstream audience soon in the UK. The most common example of connected devices is wearable electronics— electronic items capable of tracking daily activity and connecting the resulting data with a smartphone via a mobile application. There are also an increasing number of home audio and cinema devices that can be fully controlled by a smartphone or tablet, via an app. This new trend, along with new ways of interacting with electronic devices, could help to drive sales in the next five years.
One example is a smartphone plus a passive wearable device. There are expected to be great opportunities for retailers of electronics and appliances in the future.
EB: How important is India in the UK’s electronics industry value chain/supply chain?
India has a thriving and growing engineering and manufacturing SME sector that plays a key
role in the country’s economic vitality, employment and growth. All of these factors point to
opportunities for UK businesses to work and collaborate with SMEs in India – creating
business benefits and value for both parties.
EB: Do you think India is important for the future growth of your business? If yes, please share the reasons.
There have been many reports about how India will outperform China in electronics manufacturing revenues. CCL would love to be a part of that.
When companies become successful, they introduce new products and older products become less popular so they stop making them. But what do you do with the components that go into them? You could try and sell them yourself which will take time out
of your busy day, or outsource the problem to a professional. CCL offers a quick solution
to the problem of excess with an outright buy or consignment partnership, which means you can get a return for your overstock.
EB: What are the topmost challenges for you, when it comes to growing your
business in India? How can these be overcome?
We want to tap into the business in India. The challenge is to build good contacts, and learn the business customs and culture of the country. There are UK government backed trade missions to India, but these can often be too generalised with not enough of a focus on particular industries. We are in contact with the Indian Chamber of Commerce, which we hope can assist us in our early stage of entry into the Indian market.
In order to read the complete interview please read the July 2016 issue of Electronics Bazaar magazine.
