Electronic components distribution prospects are optimistic about the trend of specialization

The increasingly fierce competition in the electronic components distribution market is an indisputable fact. The increasingly narrow profit margins have caused many distributors' gross profit to even fall below the bottom line. However, people have been entering this field constantly and have achieved good results in this market.

In the electronics manufacturing industry chain, distributors have long been an indispensable channel partner in the entire manufacturer's supply chain by virtue of their extensive search for goods and the adjustment of excess inventory in the supply chain. However, in the distribution market, its increasingly fierce competition has become an indisputable fact. The increasingly narrow profit margins have caused many distributors' gross margins to fall even below the bottom line.

Under this situation, China's electronics manufacturing industry is again in an upgrading transformation and an industrial chain. What is the change in the value of distributors?

“The competition we face today is multi-faceted. First, because international distributors infiltrate domestic businesses, they have brought direct competition to these distributors. Second, the entire electronics manufacturing industry has seen thinning profits and rising costs. All of us have to adjust our business structure and direction.” Bao Jumei, general manager of Shenzhen Jiezhou Science and Technology Co., Ltd., which has been distributing electronics manufacturing industry since 2006, said in an interview with the reporter of the Electronic Market Network of Vesco.

In the distribution system, there are mainly three types of distributors: one is an authorized distributor, the second is an independent distributor, and the other is a hybrid distributor. They have a common business value, but they are also in different value spaces.

From the point of view of products, authorized distributors sell futures; independent distributors sell stocks, and their responsibility is to find components that customers desperately need from the channels. From the service perspective, authorized distributors solve the problem of long-term and stable supply, while independent distributors solve sudden problems such as shortage of stocks.

“Before, it was very important for independent distributors to be fully stocked and able to find components that were in short supply or discontinued for customers.” Bao Jumei said, “But now, with the transformation and upgrading of China's electronics manufacturing industry, distribution companies Only focus will be successful."

According to reports, Jiezhou Science and Technology Co., Ltd., one of the representatives of independent distributors in the component industry, has been focusing on the operation of four types of products (ICs, connectors, sensors, microwave communication devices), among which the connectors and sensors are widely used. Because of the large amount of customer demand, it has become the most concerned product of Jiezhou Technology. In the future, Jiezhou Science and Technology will focus on professional services and in-depth development. “With dedicated efforts, the prospect of the distribution industry is still bright.” Bao Jumei said.