Examining Online Research & Purchasing Trends of Canadian Electrical Customers

2014 IndusTRy REsEaRCh REPORTSee findings inside ...

“ClICk and ORdER”:

2 2014 Industry research report

Cara BackmanFranklin Empire Inc.

Jennifer EastmanRC Lighting

Rob FarrellEaton

Rick GingrasThomas & Betts Limited

Vince HosickWeidmuller

Rob KassiesShawFlex

John KerrKerrwil Publications

Tom MasonSonepar Canada

Francois PharandWestburne Electric Supply

Barbara TraceyLeviton Manufacturing Ltd.

Committee MembersDorothy Tully-PetersenINCEPT Strategies

Anne HarriganElectro-Federation Canada

Rick McCartenElectro-Federation Canada

John JefkinsElectro-Federation Canada

Swati PatelElectro-Federation Canada

ContentsTablE Of

3 Executive Summary

4 Introduction

5 Background & Methodology

6 Detailed Findings

6Trends:Personal&BusinessTechnologyUsage

7OnlineResearch&PurchasingBehaviours(PersonalUse)

8OnlineResearch&PurchasingBehaviours(BusinessUse)

10 Opportunities and Challenges in the Canadian Electrical Market

11ALookatTypesofElectricalProductsPurchasedOnline

12BarriersPreventingCustomersfromPurchasingOnline

13ServiceOfferings:Sources,Importance&Satisfaction

15 Conclusion

15KeyFindings

16Considerations/Questions

16Recommendations

16 Endnotes

17 Appendix

Copyright©2014byElectro-FederationCanada.Allrightsreserved.ThecontentsofthisreportmaybereproducedinwholeorinpartprovidedcreditisgiventoElectro-FederationCanada.Note:Theresultsinthisreportshouldbeinterpretedastrendsandnotasabsolutestatistics.

ThepurposeofthisresearchreportistoprovideElectro-FederationCanada’s(EFC’s)electricalmanufactureranddistributormemberswithcurrentinsighton

trendsandopportunitieswithonlineresearchandpurchasinginterestsamongCanadianelectricalcustomers.

Earlierthisyear,EFC’sElectricalCouncil(EC)conductedanonlinesurveyinbothEnglishandFrenchtoagroupofbuyersandspecifiersofelectricalproductsacrossCanada.Thesamplegroupincludedacross-selectionofcloseto7,000contactsandwascompiledfromindustryopt-ine-mailinglists.Atotalof393responseswerecollectedfromthesurvey.

Key Findings

1. It is important that everyone in the electrical industry takes notice of online purchasing!ResultsfromthissurveyandtheElectricalCouncil’ssalesreportfor2013,estimatethatapproximately11%ofthe$7,162billiontotalindustrysalesin2013werefromonlinepurchases—andhalfofoursurveyrespondents(acrossallagegroups)expecttobuyelectricalproductsonlineinthenextfivemonths.Dominatingtheproductsmostsourcedandpurchasedonlineincludelighting,tools,testandmeasurementequipmentandwireandcable.

Theopportunitytomoveforwardwithonlinesalesisinthehandsoftheseller—notthecustomer.Anadditional34%ofcustomersareunsureiftheywillbuyonline.Buyingratescouldincreasesignificantlyifthesecustomersdodecidetobuy,whichtheymayiftheircoreonlineneedsareaddressed:

Mobile-friendly,easy-to-useWebsitespopulated withproductinformation Onlinesupport Customer-friendlyreturns/exchangesoptions

2. Online purchasing is emerging as a new and complementary sales channel for electrical products.Afterresearchingproductdetailsonline,Canadianelectricalcustomersareequally likelytothenpurchasetheitemonlinethanin-store.Whenresearchisdonein-store,nonearelikelytothenpurchaseonline.

3. There are significant online sales opportunities for all electrical products.Respondentswhoboughtelectricalproductsonlinelastyearpurchasedabroad

mixofproducts.Threedominantcategoriesofproductwereeachpurchasedatleasthalfthetime:Lighting,TestandMeasurementTools,andWireandCable.Severalcustomerscommentedthatpurchasesforprojectswerenotdoneonline.

ConclusionsThesekeyfindingsdemonstratetheneedfortheCanadianelectricalindustrytoexplorepathwaystogrowonlineelectricalequipmentsales.Bothdistributorsandmanufacturersneedtoalign,integrateandcollaboratetodevelopanonlinesalesstrategythatremovesbarrierstocustomerparticipation.Furthertothis,theyshouldpromotetheirrespectiveprogramtoensurecustomerawarenessandsupportthisthroughintegratedhumanandonlinesalesefforts.

Asanindustry,weshouldexplorewaystoincreaseindustryknowledgeofonlinesalesopportunities,andwaystoeffectivelysupportandpromotethismarkettogrowelectricalbusiness.Insupportofthis,itwouldbebeneficialtoestablishane-Commerce/OnlineSalesCommitteetoassistmembers,andalsoestablishameanstocollectivelytrackandreportonlinesalesseparatelyfromtotalsales.

ExEcutivE Summary

2014 Industry research report 3

4 2014 Industry research report

introduction

Withchangingdemographics,advancementsindigitaltechnologyandmoresecure,robuste-Commerceinfrastructures,consumersareoptingforthecomfortandconvenienceof

onlineshopping.AccordingtoStatisticsCanada,overhalfofallInternetusersinCanadaordergoodsorservicesonline.In2012,thistrendresultedin$18.9billioninonlinesales.1Thispronouncedshiftinonlineconsumerspendingissimplytoosignificantforbusinessestooverlook.

From “Brick-and-Mortar” to “Click-and-Order”Theonlinepurchasingexperiencegoesbeyondcomfortandconvenience.Today’spurchasersarealsomoreinformedandsophisticatedthaneverbefore.Whereshop-personcereliedonbrick-and-mortarstorestoreceiveproductinformation,pricing,availability,specificationanddeliveryinformation,theynowhaveinstantaccesstoanarrayofproductdetails.Thesedetailsareallaccessiblewitha‘pointandclick’fromtheircomputer—ora‘swipeandtap’ontheirtabletorsmartphone.Moreover,computerandmobiledevicesfurtheraconsumer’s‘productintelligence’throughreviewsandratingsfromothersavvyconsumers.

ButjusthowprevalentaresmartphonesandtabletsintheCanadianconsumermarket?

Ina2013studyconductedbyRogersandHarris/Decima2,thefollowingkeyfindingswereshown:

52%ofCanadianspersonallyownasmartphone,while33%ownatabletdevice;twointenownboth.

50%ofrespondentsbelievethatinthenextfiveyears,theywillspendmoremoneyshoppingonlinethaninphysicalbrick-and-mortarstores.

ThegraphbelowcomparesfindingsfromthisstudywithoveralltechnologyusebyCanadians.

EXHIBIT 1: CURRENT TECHNOLOGIES USED BY TOTAL CANADA VS. ELECTRICAL CUSTOMERS

Withtheseincreasedpointsofaccesstoproductinformationandthemovementtoresearchingandpurchasingonline,nowisthetimeforbusinessestoinvestinmobile-friendlyWebsitestomaketheircustomer’sonlineexperienceapositiveone.Businessesthatunderstandhowconsumer’sengageinonlineshoppinganddesigntheironlinesalesstrategiesaccordingly,willbebestpositionedtocapitalizeontheseshiftingmarketdynamics.

Whilethesekeyindicatorsdemonstrateconsumers’onlinepersonalspendinghabits,it’simportanttounderstandthetrendsinbusiness-related purchasing—particularly,intheCanadianelectricalmarket.

ThisresearchreportexploresthecurrentstateofonlinepurchasingandresearchinterestsintheCanadianelectricalindustry,asdefinedbyelectricalcustomers.Furthermore,thisreportexaminesopportunitiesthattheCanadianelectricalmarketcandevelopbycombiningtried and testedtraditionaldistributionchannelmodelswithnew,expandingtechnologies—offeringa hybrid ‘click-and-mortar’ selling approach.

“90% of my work throughout the day is based online, whether it’s pricing,

quoting, POs, approval drawings or

specs. e-Commerce is the way of the

future and has made our business

more efficient! ” – survey respondent

■ TotalCanada■ ElectricalCustomers

100.0%

80.0%

60.0%

40.0%

20.0%

0.0%

52.0%

85.3%

33.0%

55.8%

TabletsSmartphones

2014 Industry research report 5

Background & mEthodology

ThepurposeofthisresearchreportistoprovideEFC’selectricalmanufactureranddistributormemberswithcurrentinsightontrendsandopportunitiesinonlineresearchandpurchasinginterestsamong

Canadianelectricalcustomers.

Withsupportfromaresearchcommittee,whichincludedindustryprofessionalsfrommembercompanies(seepagetwoforcommitteemembers),EFCconductedanonlinesurveyinbothEnglishandFrenchwithagroupofbuyersandspecifiersofelectricalproductsacrossCanada.TheonlinesurveywaslaunchedinMarch2014andaprizeincentivefortwoiPadAir®tabletswasoffered(andawarded)todrawinterest.

Thesamplegroupincludedacross-selectionofcloseto7,000contactsandwascompiledfromindustryopt-ine-mailinglists.ThesurveywassenttocontactsonbehalfofEFCbyKerrwilPublications,OntarioElectricalLeague,AlbertaElectricalLeague,ElectricalContractorsAssociationofOntario,anddistributorandmanufacturers’representativemembers.Atotalof393responseswerecollectedfromthesurvey.Respondentswerequalifiedbasedonthefollowingkeycriteria:

Thattheybebuyersandspecifiersofelectricalproducts,includingthoseinelectricalcontracting,utilities,andinOriginalEquipmentManufacturers(OEMs)markets.Thisbaserepresentsbuyingdecisionmakers,makingthemakeytargetforthee-Commercemarket.

Thecustomer’sbusinesswaslargelybasedinCanada.

EXHIBIT 2: THE SAMPLE BASEThesamplebaseallowedforgeo-demographicprofilinginthatitincludedadiversemixofrespondentsrepresentingdifferentregions,agegroups,businesssegments,companysizesandpositiontypes.

Ontario40.0%

Quebec21.8%

Atlantic18.2%

Alberta11.3%

Midwest3.3%

British Columbia,Territories5.4%

ByRegion

Management/Owner67.5%

Administration,Accounting1.3%

Other (Includes: Sales, Health & Safety, Maintenance, Estimator, etc.)8.4%

Engineering, Technician2.3%

Electrician, Foreman9.3%

Purchasing, Procurement,Inventory Management11.3%

ByPositionTitle

46 - 6462.7%

31 - 4527.0%

65 & over5.9%

30 & under4.4%

ByResponseAge

Contractor63.6%

Other (Includes: Property Management, Engineering Firm, Service Industry, Food Processing, etc.)5.3%

Institutional,Government4.4%

Industrial,Plant, OEM,Manufacturing13.9%

Commercial12.7%

ByBusinessSegment

1 - 1048.5%

51 & over21.3%

11- 5030.2%

ByNumberofFull-timeEmployees

6 2014 Industry research report

Trends: Personal & Business Technology Usage Studiesshowthattherewereanestimated19millionsmartphonesubscriptionsinCanadain20133.Oursurveyresultsshowthatelectricalcustomershaveahighlevelofuseofmobiledevices,withamuchhigherpercentageofthesedevicesthanthatshownforCanadiansingeneral4.

Whilethevastmajorityofrespondentsuseacomputer,thereisalsoaveryhighuseoftabletsandsmartphones.

Onaregionallevel,tabletusagerangedfrom48%inAtlanticCanadaatthelowendto70%inB.C.Similarly,smartphoneusageinAtlanticCanadawas76%,while95%ofB.C.respondentsusedasmartphone.

100.0%

80.0%

60.0%

40.0%

20.0%

0.0%Tablet Smartphone Basic

CellphoneComputer

55.8%

85.3%

21.7%

95.6%

FindingsDetailedresults show that electrical customers have a higher level of use

of mobile devices than shown for canadians in general.

EXHIBIT 3: OUR RESEARCH FINDINGS - USAGE OF CURRENT TECHNOLOGIES (TOTAL CANADA)

2014 Industry research report 7

EXHIBIT 4: MAIN USES OF TECHNOLOGIES

Oftherespondentsthatusethesetechnologies,97%usetheirmobiledeviceand/orcomputerforbusiness use,confirmingthatmobilesupportisveryimportantforbusinessconductivityamongelectricalcustomers.

Thismajorityownershiplevelofmobiledevicesindicateshowimportantitisforelectricalmanufacturersanddistributorstosupportthesetechnologiesinourmarket.Supportincludesestablishingmobile-friendlyWebsites,Apps,andeasypaymentprocessingtomaketheircustomer'sonlineexperienceapositiveone.Themainconcernwithinadequatesupportisthatuserswillbedemandingthesamelevelofsupportandservicesfromtheirbusinessprovidersastheyexperienceintheirpersonaluse.

Online Research and Purchasing Behaviours (Personal Use)Tofullyunderstandonlinepurchasinghabitsoftheelectricalcustomer,it’simportanttoexploretheirpersonalpurchasingandresearchhabits–andhowthesehabitsmayextendintotheirbusinessinterests.Whilethereisanuptakeinonlinepurchasingforpersonalitems,asevidencedinExhibits 5and6,wemustconsiderfactorsthatmayimpede/promoteonlinepurchasingforbusiness,includingfreightandtax–particularlywithinspecificregions.

Forinstance,somesitesmayprovidefreeshippingorapreferredrateforshipping.Secondly,althoughGSTandprovincialtaxesshouldbeappliedbysellersofonlinepurchasesinthesamewaytheyaretoin-storepurchases,notallsitesmayincludethis—andnotallrecipientsmayself-reportwhenrequired.

Movingforward,whenaskedifrespondentshavepurchasedapersonalitemonline,thefollowingresponsesweregathered:

EXHIBIT 5: PURCHASED ONLINE? PURCHASES IN 2013

Thisresponseshowsthatelectricalcustomersareveryactiveandexperiencedwithe-Commerce,perhapsconsiderablymoresothanpreviouslybelieved.Infact,84%oftheelectricalcustomerssurveyedhavepurchasedat least onepersonalitemonline.Thisisasignificantlyhigherlevelthanthe63%ofoverallCanadianswhoengagedinonlinepurchasingin20135.

Furthertothis,almosttwo-thirdspurchasedfive or morepersonalitemsonlinein2013.LeadingthistrendwerecustomersfromQuebec:40%mademorethan10purchasesin2013,versus28%ofrespondentsfromotherprovinces.ThisregionalvariancemaysimplyshowQuebecers’heightenedfamiliarityandcomfortwithe-Commercesites,aswellasthematuree-CommerceplatformsthatsellersinQuebecmayoffer.

EXHIBIT 6: NUMBER OF PERSONAL ONLINE PURCHASES IN 2013

Thehighrateandfrequencyofonlinepurchasingconductedbycustomersforpersonalitemsdemonstratescustomers’experiencedonlineshoppingskills,aswellastheirabilitytomanagevariedonlinepurchasingprocesses.Thisisanimportantfindingasitprovidessubstantialopportunityfortheelectricalmarkettoengagecustomersintheirbusiness’onlinepresence.

Thesefindingsalsoledustoaskcustomerswhere theygenerallypurchasepersonalgoodsfrom.Ourmarketresponsesindicatethatmostcustomerspurchasefromallthreeofthefollowing:

Onlineclassifieds(Kijiji,Craig’sList,eBay)Do-it-YourselfRetailWebsites(HomeDepot,Rona,Lowe’s)Amazon

no, 16.2%yes, 83.8%

35.0%

30.0%

25.0%

20.0%

15.0%

10.0%

5.0%

0.0%JustOne 2-4 5-10 Over10

6.1%

32.5%30.4% 31.1%

results show that electrical customers have a higher level of use

of mobile devices than shown for canadians in general.

0.0%20.0%40.0%60.0%80.0%100.0%

BusinessUseONLY

PersonalUseONLY

PersonalANDBusinessUse

2.1%

9.6%

87.3%

8 2014 Industry research report

Surprisingly,onlineclassifiedssitestoppedthislist(70%),indicatingconsumersareapttopurchasinggoodsthatmaybere-saleornewitems.Do-it-yourselfretailWebsitesscoredsecondplace(53%),andAmazontrailedslightlybehind(51%)asathirdpreference.

Thislevelofbuyingfromadiversityofsitesconfirmsthatrespondentsareactiveandexperiencedonlinebuyers,andthattheyhaveshoppingskillsaswellastheabilitytomanagedifferentonlinepurchaseprocesses.Thesecustomerswillcomewithestablishedexpectationsshouldtheychoosetobuyonlinefromtheelectricalmarket.

Thesurveynextdelveddeeperintocustomers’onlineresearchversuspurchasingpractices.

EXHIBIT 8: RESEARCH VS. BUYING PRACTICES

Afterdoingresearchonline,thisstudyfoundthatrespondentswerealmostequally likelytopurchaseanitemonlineastheyweretopurchasein-store.Asaninterestingcounterpoint,thesurveyalsofoundthatwhenrespondentsdidconducttheirresearchin-store,almostnone(2%)werelikelytothenpurchasetheproduct(s)online.

Thesecustomerswillcomewithexperienceandestablishedexpectationswhen/iftheychoosetobuyonlinefromtheelectricalmarket—whichleadsthisreporttothenextsection.

Online Research and Purchasing Behaviours (Business Use)Gaininganunderstandingofcustomers’onlinepurchasingandresearchhabitsforpersonalgoods,providesagoodpictureoftheiroverallattitudetowards,andexperiencewith,e-Commerce.Thisunderstandingisespeciallyimportantwhenexaminingacustomer’spotentialtopurchaseproductsonlineforbusinessuse.

EXHIBIT 9: PERCENTAGE OF ONLINE ELECTRICAL PRODUCT PURCHASES IN 2013

ONLINE and then purchase the item IN-STORE53.4%

ONLINE and then purchase the item ONLINE44.8%

IN-STORE and then purchase the item ONLINE1.8%

dEtailEd FindingS

Quebec and B.C. have the

highest proportion of customers

who buy electrical products online.

Quebec customers purchase the

largest percentage of their

electrical purchases online.

Iresearchproductdetails:

80.0%

70.0%

60.0%

50.0%

40.0%

30.0%

20.0%

10.0%

0.0%Onlineclassifieds

Websites(Kijiji, Craig’s List,

eBay)

Do-it-YourselfRetailWebsites(Home Depot, Rona, Lowe’s)

Amazon Other

70.0%

52.9% 51.4%

25.7%

EXHIBIT 7: ONLINE SITES PURCHASED FROM:

0.0%10.0%20.0%30.0%40.0% 50.0% 60.0%

Over80%

61-80%

41-60%

21-40%

11-20%

1-10%

None 27.9%

48.3%

10.5%

4.6%

4.0%

2.2%

2.5%

%ofrespondents

%o

fonl

ine

pur

cha

ses

2014 Industry research report 9

TheopportunityforonlinesalesintheCanadianelectricalindustryisgrowing—andthereisalreadyverysignificantuptake.Weestimatebetween$545millionand$1,100millionoccurredinonlinesalesinourindustryin2013.ThisestimateisbasedondatafromExhibit 9andthetotalsalesof$7,162billion,asreportedintheElectricalCouncil’ssalesreportfor2013.Fromthis,wecangatherthatjustover$800million(orapprox.11%)inannualelectricalsalesarecurrentlyconductedovertheInternet6.

EXHIBIT 10: ESTIMATED SALES CONTRIBUTION OF ONLINE ELECTRICAL SALES

Butwhoarethecustomersmakingthesepurchases,andwhatonlinebehaviourshavetheyformed?Thisstudynowexaminescustomers’buyinginfluenceandresearchandpurchasingactivityforelectricalproductsinCanada.

Amongthosecustomerssurveyed,averyhighproportionhavebuyingauthorityand/orinfluenceoverbuying,with58%indicatingthattheyaretheprimarypurchaserattheircompany,another8%abletomakediscretionarypurchases,and31%influencingpurchases.

EXHIBIT 11: BUYING INFLUENCE

Almostthreeinfourrespondentsbuyelectricalproductsonlinenow—withhalfofthesecustomersbuyingmorethan10%oftheirtotalannualelectricalproductpurchasesonline!

Also,afullhalfofthecustomersexpecttobuyelectricalproductsonlineinthenextfivemonths.Sufficetosay,thesecustomersaretheprimarytargetfore-Commerceinitiativesintheelectricalmarket.

Furthertothis,ina2012surveyconductedbytheNationalAssociationofElectricalDistributors(NAED)andEFC,71%ofthe124distributorssurveyedreportedthatupto5%oftheircompany’stotalsalesareenteredonlineinatypicalmonth.Furthermore,59%saidthatupto5%oftheircustomersplaceordersthroughtheirWebsiteeachmonth.

Whilethistrendlookspromising,thesurveyresponsesinExhibit 12showthat13%ofcustomersstillhavenointentionofpurchasingelectricalproductsonline,andyet34%areunsurewhenandiftheywillbuyonline.Thispositioncouldbeveryshort-lasting.Thisdatademonstratesthattheremaybesignificantopportunityintheelectricalmarkettopersuadethis‘unconverted’market.Bycomparison,50%ofoverall Canadiansindicatethattheyexpecttospendmoremoneyshoppingonlineinthenextfiveyearsthaninphysical“brickandmortar”stores7.

EXHIBIT 12: NEXT ONLINE PURCHASE

All OtherSales88.6%

Online Sales11.4%

57.8%

8.4%

31.1%

2.7%

■Iamtheprimarypurchaseratmycompany

■Icanmakediscretionarypurchases(e.g.IhaveaP-card)

■Iaminvolvedinthedecision-makingprocess

■None

Iwouldexpectmynextonlinepurchasetobein:

Unsure33.9%

No intention13.1%

10 2014 Industry research report

Nowthatcustomers’personal versus businessonlineshoppinghabitshavebeenexplored,it’scriticaltotakethesefindingsonestepfurthertounderstandhowtheCanadianelectricalmarket

canfindopportunitiesfromcustomers’expectationsandpurchasinghabits.

Forinstance,oursurveyaskedwhatcustomers’preferredmethodsareforobtainingproductinformation.Anumberofoptionsweregiven,andmultiplechoicesallowed.Theresultsshowthatmanufacturers’ Websitesandsales representativesarealmostequallyvaluedasthenumber-onesourceforproductinformation—withelectrical distributors’ branchesbeingthe

nextpreferenceandelectrical distributors’ Websitesratingfourth.Otheroptionsrankedconsiderablylower,indicatinglittlepreferenceforthese.

intheCanadianElectricalMarket

Opportunities and Challenges

100.0%

80.0%

60.0%

40.0%

20.0%

0.0%Manufacturer’s

WebsiteSalesRep Distributor’s

BranchDistributor’s

WebsiteThird-party

E-commsiteRetailStore Other

57.2% 53.9%43.1%

37.1%

8.1% 4.5% 1.5%

EXHIBIT 13: PREFERRED METHOD FOR OBTAINING INFORMATION

*respondentsweregiventheoptiontochooseoneormoreselection

2014 Industry research report 11

Wecandeterminethatcustomersresearchanumberofaspectsoftheelectricalproductstheypurchase.

Theneedforproductspecificationsandpricinginformationheadtheresearchactivityatleast80%ofthetime,followedcloselybycheckingproductavailability69%ofthetime.Otherfactorssuchasdeliveryoptionsandproductimagesandreviews,areresearchedhalfasoften,andthereseemscomparativelylittleresearchintoassociatedvalue-addedservices.

Doestheactivitylevelforthesefactorsactuallyreflecttheimportanceofthesewhenmakingapurchase?Thesurveyresultssay‘yes’,reinforcingthatproductspecifications,availabilityandpricearemostimportantfactors.It’susefultonotethatthesesamefactorswerealsoidentifiedasthethreemostimportantina2002reportpublishedbyElectro-FederationCanada8.

A Look at Types of Electrical Products Purchased OnlineOursurveyexploredwhattypesofelectricalproductscustomerspurchasedonlineinthelast12months.ConsistentwiththeresultsfoundinExhibit 6,one-thirdofrespondentssaidthattheyhadnotpurchasedanything.Thosewhodidbuy,hadpurchasedabroadmixofproductsonlineinthepastyear.

AsshowninExhibit 16,LightingProducts(71%)leadtheactivity,followedbyTest&MeasurementTools(53%).Surprisingly,WireandCable(45%)isinvolvedinalmost halfoftheonlinepurchases!Althoughwedon’tknowthesizeofwireinvolved,thisfrequencyissignificant.Purchaseofeachofthebalanceoftheproductssurveyedfor,occurredatleastathirdofthetime.FactoryAutomationshowedalowactivitylevelof18%,butthismaybeduetotherespondentsbeingpredominantlynon-industrialcontractors,orthattheyrequiremoreproductinformationoronlineassistance.

Itisinterestingtonotealso,thatanumberofrespondents'stronglycommentedthattheydidnotmakeproject purchasesthroughonlinepurchasing.

100.0%

80.0%

60.0%

40.0%

20.0%

0.0%ProductSpecs Pricing Availability Product

ImagesDeliveryOptions

ProductReviews

Value-addedservices

83.1%80.0%

69.2%

48.3%

39.1% 34.2%

16.6%

Whenmakinganelectricalproductpurchase,Iresearch:

EXHIBIT 14: ONLINE RESEARCH NEEDS

0.00.51.01.52.0 2.5 3.03.54.0 4.5 5.0

Availability

ProductSpecs

Pricing

DeliveryOptions

ProductImages

ProductReviews

Value-addedservices 3.2

3.3

3.6

3.6

4.2

4.3

4.4 “e-Commerce is basically used when

local distributors do not

have what we need,

and we research products

online. However, we

much prefer to work with

our local people. ” – Survey respondent

EXHIBIT 15: IMPORTANCE OF THE FOLLOWING INFORMATION WHEN MAKING A PURCHASE(Rating out of 5: 1= Not Important, 5 = Extremely Important)

12 2014 Industry research report

Barriers Preventing Customers from Purchasing OnlineInEFC’s2002report9,barrierstoInternetusewereexplored:40%ofrespondentshadidentifiedthebiggestbarriertobethattheirpreferreddistributordidnothaveaWebsite.Fortunately,accordingtotheNAED/EFCreportfromlastyear,thisissuehasbeenresolved:97.8%oftheirrespondentshaveaWebsite.

Giventhatoneinthreecustomersdonotbuyonlineyet,itwasimportanttoexplorewhythismightbethecase.Thissurveyhastackledthequestionofwhataretoday’sbarriersprohibitingacustomerfrompurchasingonline—andthefindingsarebothinterestingandactionable.

EXHIBIT 17: BARRIERS FOR PURCHASING ONLINE

Manyfactorswereidentifiedassignificantconcernsandbarrierstoonlinepurchasing,andtherearetwoelementsmissingtodaythatdistributorscantaketheopportunityto

address:ImplementonlinecustomerserviceDevelopandimplementanewonlinereturns/exchangeprocess.

Interestingly,halfoftherespondentsidentifiedproductdeliverytobeabarrier,eitherbecausedeliverycostsweretoohighorbecausedeliveriesweretooslow.Thechallengemaybethatnotallexisting order/inventorysystemsaccommodatetheextrasaleschannelthate-Commercerepresentswithinanorganization.

Procedureandcostingreviewsshouldidentifytherootofproblemsheresothatdespitesystemissues,actionscanbetakentooptimizethee-Commercesaleschannelandremovedeliverycostandtimingasbarriers.Iftheseconcernsarebasedonperceptionandnotfact,thentheresultsofsuchreviewsshoulddispelthese.

Also,30%ofcustomersareconcernedabouttheprivacyoftheirpersonalandfinancialdetails.ExistingsystemsandproceduresmayalreadyadequatelyaddresstheseconcernsforexistingB2B(Business-to-Business)customersthataddonlinepurchasingtotheiraccountactivities.However,sellersmayneedtoaddcompletely newcapabilitiestosupporte-Commerce,suchasallowingcreditcardpurchasesforanyB2C(Business-to-Consumer)customersthatcometotheWebsitetobuy.Besidesthedevelopmentofnewsystemsandproceduresforthis,separatebusinessunitsmayneedtobeestablishedtoserviceamuchdifferentcustomermix.

0.0%20.0%40.0%60.0% 80.0% 100.0%

Lighting

Test&MeasurementTools

Wire&Cable

Connectors&WiringDevices

DistributionEquipment

Datacom

MotorControls

ElectricHeating/HVAC

FactoryAutomation 18.4%

27.2%

31.0%

33.9%

38.5%

41.0%

45.2%

52.7%

70.7%

opportunitiES and challEngES

0.0%20.0%40.0%60.0% 80.0% 100.0%

Difficulttoreturn/exchangeproducts

Websitenoteasytouse

Poorcustomerserviceoptions

Privacyconcernswithpersonal/financialdetails

Deliverycoststoohigh

Limitedproductinformation(photos,specs.)

Deliverytooslow

Company’sprocurementprocessdoesn’tsupportthis

Don’tknowwheretoshoponline 13.3%

15.0%

22.9%

23.2%

25.9%

30.4%

31.4%

34.8%

50.5%

EXHIBIT 16: TYPES OF ELECTRICAL PRODUCTS PURCHASED IN LAST 12 MONTHS

“ It’s great for items that you have a low concern for

warranty issues and that

have a low risk impact to

your business, such as tools.

Would we purchase a $1M

lighting, distribution

package online? Never. ” - Survey respondent

2014 Industry research report 13

Thefollowingtwoitemsaresaidtobebarriersforone-in-eightcustomers: Firstly,thecustomerdoesn’tknowwheretoshoponline;

distributorsneedtomakesurethattheiroptionsarewell-communicated,publicized,andvisibleonline.

Secondly,sellersneedtoworkwiththeircustomerstomodifyorbuildcustomerprocurementprocessestosupporte-Commerce.

Whataretheresultsofthesebarriers?Ofthosecustomerswhodoengageinonlineshoppingandexperiencesub-pare-Commercesites,manywillgenerallydiscontinuetheironlineshopping.Infact,65.2%ofonlineCanadianshoppersaresaidtoabandontheirshoppingcart10.Shoppersareknowntodiscontinueshoppingbecauseofthefollowingreasons:

Sources, Importance and Satisfaction of Service OfferingsBeyondthebarriers,it’skeytounderstandtheneedsofcustomerswithregardtoserviceofferingsintheelectricalindustry.Inoursurvey,customerswereaskedaboutavarietyofservicesassociatedwithonlinepurchasing,including:

•Faster/expediteddelivery•24/7ordering•Extendedwarranty•Onlinesupport•Employeetraining•Projectmanagementservices•Productinformation•Installation/integrationsupport

Wetackledthisquestioninthreeways:First,weexploredwhocustomerslookedtoforthese

services.Next,weaskedrespondentstoranktheimportanceofeachservicetotheirbusiness.Lastly,weaskedthemtoratetheirsatisfactionwiththeircurrentdistributor’se-Commercecapabilitiesforeachservice.

Together,thefindingsprovideausefulguidefromwhichmanufacturersanddistributorscanunderstandcustomerprioritiesanddevelopmoreeffectiveonlineactionplans.

Whencustomerswereaskedwho(Manufacturer/Distributor/Neither)theyrelyontoobtainthefollowingservices,theyindicatedtheirpreferenceasfollows:

“Manufacturers’ Websites are as a whole, not user-friendly for contractors to find useful product information. I just want to go to the Website, plug in a product name,

model number, product type or description and find information. ” – Survey respondent

Source: http://www.distributech.ca/shopping-cart-abandonment-rate-statistics-infographic/

■Manufacturer■Neither■Distributor

0%20%40%60% 80% 100%

Faster/ExpeditedDelivery

24/7Ordering

ExtendedWarranty

OnlineSupport

EmployeeTraining

ProjectManagementServices

ProductInformation

Installation/IntegrationSupport

74.6%

62.1%

42.9%

27.7%

31.6%

35.3%

57.0%

36.8%

16.0%

11.6%

42.3%

52.0%

33.2%

12.9%

41.9%

45.9%

9.4%

26.3%

14.8%

20.3%

35.2%

51.8%

1.1%

17.4%

EXHIBIT 18: WHO CUSTOMERS RELY ON FOR THESE SERVICES

14 2014 Industry research report

Itishelpfultounderstandthecustomers’preferencesfortheseservices,buttobetrulyusefulwemustalsounderstandtherelativeimportanceofeachservicetotheirbusiness.Whichservicesaretrulyimportant?

EXHIBIT 19: IMPORTANCE OF SERVICES TO CUSTOMERS(Rating out of 5: 1= Not Important, 5 = Extremely Important)

Theneedforproductinformationissignificantlyhigherthantheotherservices,followedbyfaster/expediteddelivery.Thesetwoservicesshouldbeconsideredhigh-rankingopportunitiesformanufacturersanddistributorstoexplorewithintheire-CommerceWebsiteplatform.

IntheExhibit 20,respondentsappearmoderatelysatisfiedwiththeirdistributor’scurrente-Commercecapabilitiesfor

alloftheserviceslisted,butonlyProductVarietyscoreda‘satisfied’ranking;Value-addedServicesandOnlineSupportrankedlowestinsatisfaction.

EXHIBIT 20: SERVICE SATISFACTION WITH YOUR PREFERRED DISTRIBUTOR’S E-COMMERCE CAPABILITIES(Rating out of 5: 1= Not Satisfied, 5 = Extremely Satisfied)

CustomersinQuebecarequiteabitmoresatisfiedwiththeircurrentdistributors,givingratingsthatareanentirehalf-pointhigher(+.5/5).Thereasonsforthisshouldbeexploredsothattheybecomelessonslearned.Also,considerations—suchasthepossiblebeneficialroleofCMEQinQuebecinofferinglong-standingonlinesupporttools—shouldbeexamined,asthesemaybefactorsinthehighere-CommerceuptakeandsatisfactionwithdistributorservicesinQuebec.

opportunitiES and challEngES

Total Canada Quebec

Product Variety 3.5 3.9

Product Availability 3.5 3.8

Pricing Details 3.5 3.8

Product Specs 3.4 3.6

Delivery Options 3.4 3.7

Site Design, Navigation, Ease-of-use 3.3 3.7

Online Sales Capabilities 3.3 3.7

Online Customer Support 3.1 3.5

Value-added Services 3.1 3.2

HowsatisfiedareyouwithyourPREFERREDDistributor’se-Commercecapabilitieson:

0.01.02.03.0 4.0 5.0

ProductInformation

Faster/ExpeditedDelivery

Installation/IntegrationSupport

OnlineSupport

EmployeeTraining

ExtendedWarranty

24/7Ordering

ProjectManagementServices 3.0

3.3

3.4

3.4

3.6

3.8

4.0

4.4

ThefindingsinthisreportshinelightonthecurrentneedsandchallengesofelectricalcustomersintheCanadianmarket.Anumberofoverallconsiderationsand

recommendationscanalsobedrawn,whichfollowthekeyfindingsbelow:

Key Findings Electricalcustomershaveahighlevelofuseof

mobiledevices—muchhigherthanCanadiansingeneral.Allusetheirmobiledevicesand/orcomputerforbusiness.

Agedoesnotmatter.ThereisnosignificantdifferenceintechnologyusebyagegroupamongCanadianelectricalcustomers(i.e.contractors).

ThemajorityofCanadianelectricalcustomershavepurchasedonline,andalmosttwo-thirdshavepurchasedfiveormoreitems.Anumberofe-CommercesiteshavebeenpopularwithCanadianelectricalcustomersforpersonalpurchases,creatinganexperiencedconsumerwiththeabilitytousedifferentsupplierprocedures.Quebeccustomerspurchasedmorethanelsewhere.

Afterresearchingproductdetailsonline,Canadianelectricalcustomersareequally likelytothenpurchasetheitemonlinethanin-store.Whenresearchisdonein-store,nonearelikelytothenpurchaseonline.

Theopportunityforonlinepurchasingintheelectricalindustryisgrowing,andthereisalreadyverysignificantuptake:approximately11%ofthe$7,162billiontotalindustrysalesin2013areestimatedfromthissurveytohavebeenconductedviaonlinepurchases($545millionto$1.1billion).

• Almostthreeinfoursurveyrespondentsbuyelectricalproductsonlinenow,andhalfofthesebuymorethan10%oftheirannualelectricalproductpurchasesonline.

• Halfofrespondentsexpecttobuyelectricalproductsonlineinthenextfivemonths.Anadditional34%areunsure,sobuyingratescouldincreasesignificantlyifthesecustomersdodecidetobuyonline.

Morethanthreequartersofthetime,Canadianelectricalcustomersconsiderproductspecifications,pricing,andavailabilitytobeleadingfactorsintheirdecisiontobuyonline.Theyresearchthesefactorsproportionallytotheirimportance.

Respondentswhoboughtelectricalproductsonlinelastyearpurchasedabroadmixofproducts.Threedominantcategoriesofproductwereeachpurchasedatleasthalfthetime:Lighting,TestandMeasurementTools,andWireandCable.Severalcustomerscommentedthatpurchasesforprojectswerenotdoneonline.

Anumberofbarriersstandinthewayofcustomersbuyingelectricalproductsonline,including:

•Fivein10cited‘difficultyreturning/exchangingproducts’

•Threein10cited‘Websitesnoteasytouse’,‘poorcustomerserviceoptions’,and‘privacyconcernsfortheirfinancialdata’

• Oneinfourcited‘highdeliverycosts’,‘slowdeliveries’,and‘limitedproductinformation’

• Oneineightcited‘theirowncompany’sunsupportiveprocurementprocedures’

• Oneineightcitedthat‘theydidn’tknowwheretogotoshoponline’

Customersrelyonmanufacturersanddistributorstodifferentdegreesassourcesforservicesassociatedwithonlinepurchasing(andsometimesrelyonneither).Respondentswereonlymoderatelysatisfiedwiththeirpreferreddistributor’scurrentInternetpurchasingcapabilitiesfortheseservices,andQuebecrespondentsweresignificantlymoresatisfiedthanelsewhere.

• Themostimportantserviceis‘productinformation’,wherethemanufactureranddistributorarelookedtoalmostequally.

• ‘Expeditingdelivery’isthesecondmostimportantservice,anddistributionissignificantlyfavoured.

• ‘Installation/integrationsupport’and‘onlinesupportservices’rankednextinimportance,andmanufacturerswerefavouredoverdistribution.

2014 Industry research report 15

Conclusion

16 2014 Industry research report

Considerations/Questions Explorehowtocaptureandcompletethesalewhen

customersareresearchingproductsonline.Avoidlosingthesaletosomeoneelse.

ExplorewhyQuebecappearstobemoreactiveandmoresatisfiedwiththeironlinepurchasingexperienceandtheirassociateddistributorsupport.

• HowlonghasonlinepurchasingbeenavailableinQuebecversuselsewhere,andhowhasitmatured?Whatkeylearningscanwetakefromthistodeveloponlineactivityelsewhere?

• WhatroledoesCMEQorotherindustryalliesplayintheuptakeofe-CommerceinQuebec?

Arethereimplicationsformoredirectonlinesellingbymanufacturers?Forexample,ininstanceswheretechnologiesaredevelopingandnewmanufacturerstrytocomeintothemarketwithoutabrick-and-mortardistributionsaleschannel–e.g.Lighting.

Whataretheopportunitiesforproject-relatedonlinesales?Howarethoseneedsdifferentthanforday-to-daybusiness?

ExploreWireandCableonlinepurchasingtobetterunderstandthisactivityandtheopportunitiesfortheproductline.Areonlinesaleslimitedtocircuitwireoverlargerbuildingwireorspecialtycables,orisitmixed?Aretherebenefitstobuyingthisproductonlinethatcanbeexploitedtofurthergrowthesesales?

Recommendations Bothmanufacturersanddistributorsshouldactivelydevelop

anonlinesalesstrategyfortheirbusiness.Communicateandpromoteyourcompany’scapabilities.Justbecauseyoubuildit,doesn’tmeanthey’llcome.

Manufacturersanddistributorsshouldbetteralign—orintegrate—thehumansaleseffortsandinformationwithonlinesaleseffortsandinformation,includingcustomerservice,technicalsupport,pricing,stockavailability,deliveryandafter-salessupport(returns/exchanges).Explorecurrentcustomerpreferencesasthebestplacetobegintoimprovethese.

Bothmanufacturersanddistributorsshouldimprove/increaseproductinformationonlineforcustomers.

Explorepresentfreightandtaxpracticesfromdistributionandotherindustrychannels.

• Dotheycomplywithcurrentlegislation?• Arefreightmodelsusedwithonlinepurchasesoffering

benefitsoverin-storepurchasingtoconsumers?Ifnotarethereopportunitiesforthis?

concluSion

1 Statistics Canada (2012), “Individual Internet Use and e-Commerce” [Online]. http://www.statcan.gc.ca/daily-quotidien/131028/dq131028a-eng.htm

2 Rogers Communications (2013). “Rogers’ Innovation Report: Tech Trends 2013” [Online]. http://www.slideshare.net/Rogers/rogers-innovation-report-tech-trends

3 Kleiner, Perkins, Caufield, Byers (KPCB) (2013), “Internet Trends D11 Conference” [Online] www.kpcb.com/insights/2013-internet-trends

4 85% have a smartphone and 56% have a tablet, whereas 52% of Canadians personally own a smartphone and 33% own a tablet (2 in 10 own both). Source: Rogers Communications (2013). “Rogers’ Innovation Report: Tech Trends 2013” [Online]. http://www.slideshare.net/Rogers/rogers-innovation-report-tech-trends

5 ibid

6 Estimated sales contribution of online electrical sales, based on the findings in Exhibit 9, and using EFC estimate of 2013 Electrical Distributor Sales to be approximately $7.2 billion

7 Rogers Communications (2013). “Rogers’ Innovation Report: Tech Trends 2013” [Online]. http://www.slideshare.net/Rogers/rogers-innovation-report-tech-trends

8 “The Electrical Customer Speaks” (Toronto: Electro-Federation Canada, 2002), page 5.

9 “The Electrical Customer Speaks” (Toronto: Electro-Federation Canada, 2002), page 22.

10 Distributech (2012). “Shopping Cart Abandonment – Rate Statistics” [Online]. http://www.distributech.ca/shopping-cart-abandonment-rate-statistics-infographic

Trackandreportonlinesales,i.e.separatelyfromtotalsales,acrosstheelectricalindustry:

• Distributorlevel• Manufacturerlevel• Industrylevel(EFCSalesReports)

Exploreandincreaseeducationwithintheelectricalindustryrelatingtothesimilaritiesanddifferenceswithe-Commerce,andpromotionneedsandopportunities.ConsiderestablishinganEFCe-CommerceCommitteetocreateaplatformforthis,andtoassistmembers.

EndnotES:

$7,162(Millions)

Online Sales Estimate

Range Low-end % High-end % Exhibit 9 (Millions) Low EndHigh End

none 0% 0% 27.9% $1,998 $0 $0

1-10% 1% 10% 48.3% $3,459 $35 $346

11-20% 11% 20% 10.5% $752 $83 $150

21-40% 21% 40% 4.6% $329 $69 $132

31-60% 41% 60% 4.0% $286 $117 $172

61-80% 61% 80% 2.2% $158 $96 $126

Over 80% 81% 90% 2.5% $179 $145 $161

100.0% $7,162 $545 $1,087 $816 Millions of Dollars

7.6% 15.2% 11.4% Percentage of total sales

Estimated online sales as follows:

2014 Industry research report 17

appEndix

Survey Questions to End-Customers

TECHNOLOGY USE Which of the following technologies do you currently use? (check all that apply)❏ Tablet ❏ Smartphone❏ Basiccellphone❏ Computer❏ NoneoftheAbove

What do you mainly use these technologies for? (check one)❏ Personaluse:toresearchand/orbuypersonalproducts❏ Businessuse:toresearchand/orbuybusinessproducts❏ Both❏ Neither

PERSONAL BUYING HABITSHave you ever purchased a personal item online?❏ Yes ❏ No If “No”, skip to Company Profile

Ifyes,approximatelyhowmanypersonal onlinepurchasesdidyoumakein2013? ❏ Justone ❏ 2-4 ❏ 5-10 ❏ Over10

Which of the following Website(s) have you purchased personal products from? (check all that apply)❏ Amazon❏ OnlineclassifiedWebsites(Kijiji,Craig’sList,eBay)❏ Do-it-YourselfRetailWebsites (if chosen)PleasenametheDIYretailer(s) youhavepurchasedfrom:________________________❏ OtherRetailWebsites

When shopping for a product, which of the following practices most applies to you? (check one)❏ Iresearchproductdetailsonline andthenpurchasetheitemonline❏ Iresearchproductdetailsonlineandthenpurchasetheitem in store❏ Iresearchproductdetails in storeandthenpurchasetheitemonline

COMPANY PROFILEWhat best describes the business segment that you work in?❏ Industrial/Plant/OEM/Manufacturing❏ Commercial❏ Institutional/Government❏ Contractor❏ PropertyManagement❏ EngineeringFirm❏ Other (Please specify):_________________________________

2014 IndusTRy REsEaRCh REPORT:

PROFILE (Optional)

FullName:_________________________________________________________________________________________________

CompanyName:___________________________________________________________________________________________

Email:_____________________________________________________________________________________________________

Phone:____________________________________________________________________________________________________

Pleaseindicateyouragegroup:❏21orunder❏22-30❏31-45❏46-64❏65orover

Respondents were asked the following questions, which serve as the premise of this study. This survey was made available in both English and french.

appEndix

18 2014 Industry research report

Number of full-time employees (nationally):❏ 1-10employees❏ 11-20employees❏ 21-50employees❏ 51-100employees❏ Over100employees

Which region do YOU primarily conduct business in? ❏ Atlanticprovinces❏ Quebec❏ Ontario❏ Manitoba❏ Saskatchewan❏ Alberta❏ BritishColumbia❏ Northernterritories

COMPANY PRODUCT PURCHASING HABITSWhat position do you currently hold at your company?❏ Management/Owner❏ Purchasing/Procurement/InventoryManagement❏ Engineering/Technician❏ Electrician/Foreman❏ Maintenance❏ Administration/Accounting❏ Other

What influence do you have over company purchases?❏ Iamtheprimarypurchaseratmycompany❏ Icanmakediscretionarypurchases(e.g.IhaveaP-card)❏ Iaminvolvedinthedecision-makingprocess❏ None

What percentage of your electrical purchases does your company transact over the Internet?❏ None❏ 1-10%❏ 11-20%❏ 21-40%❏ 41-60%❏ 61-80%❏ Over80%❏ Notsure

When do you next expect to purchase an electrical product online?❏ Inlessthanonemonth❏ In1-5months❏ In6-12months❏ In1-2years❏ Notsure❏ Nointentionofpurchasingonline

What is your preferred method for obtaining product information? (check all that apply)❏ SalesRepresentative❏ Electricaldistributor’sBranch❏ Electricaldistributor’sWebsite❏ Electricalmanufacturer’sWebsite❏ Third-partye-Commercesites(i.e.Amazon,etc.)❏ Retailstore❏ Other(Please specify):_________________________________

When online, what information do you research when considering the purchase of an electrical product? (check all that apply)❏ Pricing❏ Availability❏ Productspecifications❏ Value-addedservices❏ Deliveryoptions❏ Productreviews❏ Productphotos/images❏ Other(please specify):_________________________________

How important is the following information in helping you decide whether to buy an electrical product? (1 = not important; 5 = very important: you can select a rating more than once)

1 2 3 4 5

Pricing ❏ ❏ ❏ ❏ ❏

Availability ❏ ❏ ❏ ❏ ❏

Productspecifications ❏ ❏ ❏ ❏ ❏

Value-addedservices ❏ ❏ ❏ ❏ ❏

Deliveryoptions ❏ ❏ ❏ ❏ ❏

Productreviews ❏ ❏ ❏ ❏ ❏

Productphotos/images ❏ ❏ ❏ ❏ ❏

Which of the following types of electrical products have you purchased online in the last 12 months? (check all that apply)❏ Lighting(Fixtures/Emergency/Lamps/Ballasts)❏ Wire&cable❏ Distributionequipment(Panelboards,etc.)❏ Factoryautomation❏ Motorcontrols❏ ConnectorsandWiringDevices❏ Electricheating/HVAC❏ Datacom(Voice/Video/Data)❏ Test&MeasurementTools❏ Other (please specify): _________________________________❏ None

2014 Industry research report 19

SERVICESWhat are the barriers keeping you from purchasing electrical products online?

❏ Don’tknowwheretoshoponline

❏ Deliverycoststoohigh

❏ Deliverytooslow

❏ Websitenoteasytouse

❏ Privacyconcernswithpersonal/financialdetails

❏ Difficulttoreturn/exchangeproducts

❏ Limitedproductinformation(photos,specs.)

❏ Poorcustomerserviceoptions❏ Mycompany’sinternalprocurementprocessdoesn’tsupportthis❏ Other(please specify): _________________________________

Who do you rely on to obtain the following services? (Check all that apply) MFG DISTRNeither

Installation/IntegrationSupport ❏ ❏ ❏

ProductInformation ❏ ❏ ❏

ProjectManagementServices ❏ ❏ ❏

EmployeeTraining ❏ ❏ ❏

OnlineSupport ❏ ❏ ❏

ExtendedWarranty ❏ ❏ ❏

24/7Ordering ❏ ❏ ❏

Faster/ExpeditedDelivery ❏ ❏ ❏

Other ❏ ❏ ❏(please specify): __________________________________________

How important are these services to your business? (1 = not important; 5 = very important)

1 2 3 4 5

Installation/IntegrationSupport ❏ ❏ ❏ ❏ ❏

ProductInformation ❏ ❏ ❏ ❏ ❏

ProjectManagementServices ❏ ❏ ❏ ❏ ❏

EmployeeTraining ❏ ❏ ❏ ❏ ❏

OnlineSupport ❏ ❏ ❏ ❏ ❏

ExtendedWarranty ❏ ❏ ❏ ❏ ❏

24/7Ordering ❏ ❏ ❏ ❏ ❏

Faster/ExpeditedDelivery ❏ ❏ ❏ ❏ ❏

Other ❏ ❏ ❏ ❏ ❏

(please specify):__________________________________________

How satisfied are you with your preferred distributor’s current e-Commerce capabilities for the following options? (1 = not satisfied; 5 = very satisfied)

1 2 3 4 5

Onlinesalescapabilities ❏ ❏ ❏ ❏ ❏

Pricingdetails ❏ ❏ ❏ ❏ ❏

Productavailability ❏ ❏ ❏ ❏ ❏

Productvariety ❏ ❏ ❏ ❏ ❏

Productspecifications ❏ ❏ ❏ ❏ ❏

Value-addedservices ❏ ❏ ❏ ❏ ❏

Deliveryoptions ❏ ❏ ❏ ❏ ❏

Sitedesign,navigation,ease-of-use ❏ ❏ ❏ ❏ ❏

Onlinecustomersupport ❏ ❏ ❏ ❏ ❏

Do you have any closing comments about e-Commerce in the electrical industry?

_______________________________________________________________

_______________________________________________________________

_______________________________________________________________

_______________________________________________________________

_______________________________________________________________

_______________________________________________________________

_______________________________________________________________

_______________________________________________________________

_______________________________________________________________

_______________________________________________________________

_______________________________________________________________

_______________________________________________________________

_______________________________________________________________

_______________________________________________________________

_______________________________________________________________

_______________________________________________________________

_______________________________________________________________

_______________________________________________________________

Electro-Federation Canada Inc., 300 - 180 Attwell Drive, Toronto, ON M9W 6A9( 905-602-8877 416-679-9234 : www.electrofed.com info@electrofed.com

Electro-Federation Canada’s Electrical Council (EC) is an industry organization

that represents the interests and needs of more than 200 manufacturers, distributors and manufacturers’

representatives in Canada. Electrical Council members manufacture, distribute, market and sell a

wide range of electrical products, including distribution equipment, industrial controls, lighting,

motors and generators, transformers, wire and cable, wiring supplies and electric heating.

These categories form the basis of Electrical Council’s Product Sections, which offer a strong nucleus for

members to discuss issues and opportunities pertaining to their company’s product focus.

In addition, the Electrical Council maintains a strong focus on electrical safety, sustainability, advocacy,

codes and standards, and also serves as a hub of networking, education, and industry research.

May 2014