Huaqiangbei is a trading center and distribution center for electronic components nationwide, renowned in China and even globally.

Dual driven by distribution and agency, constantly increasing digital layout in line with the times

As a spot supply chain enterprise that has gradually developed from Huaqiangbei and specializes in semiconductor distribution and agency, Innovation Yingke has been actively embracing the development opportunities brought by the progress of the times since its establishment in 2007. It has accumulated and accumulated multiple upstream resources on the path of independent innovation, and has established deep and continuous cooperative relationships with major domestic and foreign manufacturers and agents.

Specifically, in terms of distribution business, as the core business of Chuangxin Yingke's growth, the company fully utilizes its long-term accumulated professional and experiential advantages to purchase various brands and models of electronic components products globally through various channels and sell them to gain profits. As of now, the international brands that the company has advantages in distributing include TI, ST, ON, EVERLIGHT, etc. The products cover many application fields such as consumer electronics, smart home, industrial control, network communication, medical equipment, automotive electronics, instrumentation, security, etc., and can provide one-stop services for domestic and foreign OEM, ODM, EMS, PCBA, IDH and other customers.

Compared with distribution business, authorized agency business has closer cooperation with the original factory due to its authorization. Not only can the delivery time and price of related products be effectively guaranteed, but with the assistance of the original factory, it can also provide customers with higher quality solutions and technical support according to their needs. This provides an important foundation for distributors to enter the qualified supplier system of large customers.

After achieving certain results in the distribution business, Chuangxin Yingke also began to extend its business to agency lines, providing new momentum for the growth of the company's performance. At present, Chuangxin Yingke has cooperated with the world's leading integrated circuit and power semiconductor IDM manufacturer, Youshun Technology, in its agency business. It has represented multiple advantageous analog product lines such as operational amplifiers, drivers, interfaces, and regulators, and has a clear competitive advantage in the market.

Lin Zhenpeng, General Manager of Chuangxin Yingke Electronics, stated that Chuangxin Yingke mainly focuses on spot distribution and has its own warehouses in Huaqiangbei and Hong Kong. The company has always prepared some commonly used part numbers for customers, mainly involving various types of products such as power devices, simulator components, and driver chips. In terms of sales contribution, TI's simulation series products currently have the best sales, followed by Ansemy's power device series products. In addition, our agency Youshun's products have gradually increased in volume. With the unremitting efforts of all members of the company, the company's performance has been increasing year by year, reaching new heights.

Innovative Yingke Distribution TI's Partial Products

Source: Innovation Yingke

In recent years, with the rise and deepening application of Internet technology, artificial intelligence algorithm and other technologies, the digital transformation and upgrading of electronic component distributors are also accelerating.

Compared with traditional models, distributors can not only efficiently process large amounts of data in their daily business through digital supply chain construction, but also provide more transparent supply chain services, including product selection, source matching, intelligent recommendation, quality control, etc., for massive small and medium-sized batch/small and medium-sized enterprise spot demand orders at lower service costs. In addition to distributors, some international original factories represented by TI in the industry have also started building their own online shopping malls to improve the circulation efficiency of the company's products.

Through digital and intelligent means, the production, trading, financing, and circulation efficiency of electronic components can be significantly improved, and the costs of each link can be reduced, thereby enhancing the competitiveness of the entire industry chain. This is also for the consideration of TI and other manufacturers building their own electronic component shopping malls. From the perspective of impact, TI is our main distribution brand, and although they have an impact on us through online direct sales, the overall impact is not significant. Firstly, because the market for electronic components is large, a single manufacturer cannot capture all market share; Secondly, our current purchase prices are definitely lower than those on the official website, and the price range should be at least 2% -5% cheaper than the official website, which gives us sufficient price advantages and profit margins in the market; Thirdly, we are currently actively embracing digitalization. On the one hand, the company is building an online trading platform to facilitate customers in purchasing and selling electronic components, thereby improving the company's transaction efficiency. On the other hand, we have also made great efforts to promote and channel in various Internet B2B vertical platforms and social media, which not only improves the company's popularity, but also makes our online sales of brand products increase year by year.

Lin Zhenpeng said.

Advantage spot inventory model of 10000+, mismatched competition to cross cycles

Distributors are the link between electronic component design manufacturers and electronic product manufacturers, and an important part of the electronic component industry chain.

For upstream manufacturers, there is an extremely rich variety and models of electronic components, with SPUs counting in billions. Downstream applications are widespread and demand is diverse. Due to factors such as service costs and specialized division of labor, large upstream factories find it difficult to efficiently and fully cover downstream demand; For downstream electronic product manufacturers, they mainly focus on product research and development and manufacturing. Due to market factors, the demand side often exhibits short-term or long-term fluctuations, and there is a certain mismatch with the output of the supply side.

In this context, distributors can not only assist upstream original factories in product market development and customer technical support through their financial and resource advantages, but also provide supply chain services to downstream customers, thereby completing the allocation of electronic components in different markets, regions, and supply periods. At present, about 56% of the global semiconductor sales of $520 billion mainly rely on distributor channels for electronic component procurement, while over 99% of small and medium-sized electronic product manufacturers mainly use this method to purchase materials, creating a huge market space.

About The Author

This is reported by Top Components, a leading supplier of electronic components in the semiconductor industry. They are committed to providing customers around the world with the most necessary, outdated, licensed, and hard-to-find parts.

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Name: John Chen

Email: salesdept@topcomponents.ru