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Independent distributors: grasp key markets, reshuffle period or the future

Independent distributors: grasp key markets, reshuffle period or the future

(Summary description)For independent distributors, 2012 is a year of overcoming difficulties and making progress in the challenges. As mentioned above, the proportion of independent distributors in the distribution industry has reached a historic low.

Independent distributors: grasp key markets, reshuffle period or the future

(Summary description)For independent distributors, 2012 is a year of overcoming difficulties and making progress in the challenges. As mentioned above, the proportion of independent distributors in the distribution industry has reached a historic low.

Information

  For independent distributors, 2012 is a year of overcoming difficulties and making progress in the challenges. As mentioned above, the proportion of independent distributors in the distribution industry has reached a historic low. After experiencing the severe winter in the industry in 2011 and 2012, how to achieve a better performance in 2013 is a serious issue for every company. Eric Xie, general manager of Jieyang Technology, said that for independent distributors, it is not accidental to achieve good performance. On the one hand, they need opportunities from the market, which are external factors; on the other hand, they also need independent distributors. Business diligence practice internal skills, improve the company's quality in all aspects. If there is no good internal precipitation, when the market opportunity arrives, there is no way to take it well.

The target market in the eyes of independent distributors

  

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Key markets in the eyes of independent distributors 2013 vs 2012

  The survey results show that the main target market for 2013 in the eyes of independent distributors has changed considerably from last year. Medical electronics rank first, followed by security monitoring and power electronics. The ranking of smart grids has increased significantly, 10% more than last year. In contrast, industries such as LTE communications, smart phones, LEDs, solar/wind energy, and lithographic computers have all declined to varying degrees. Based on the previous survey of authorized/mixed distributors, medical electronics and security have become hot industries in 2013.

  Medical and power electronics are the industries that Jieyang Technology has been focusing on before. Eric Xie said that in the fields of industrial instrumentation, industrial control and communication network, Jieyang Technology also has its own loyal customers, and currently has good business dealings with the top companies in these industries. According to Jason Fan, Executive Director of APT, the company pays more attention to the performance of automotive electronics, mobile communications, industrial control and consumer electronics in 2013.

  For independent distributors, in order to achieve rapid growth, the two most important points are to establish close customer relationships and change with the changes in customer needs. Jason Fan predicts that APT will have a growth of more than 50% in 2013.

  The delivery cycle is prolonged, and the shortage of goods is difficult to reproduce in the short term

  According to the survey, the proportion of independent distributors with spot inventory is as high as 91%, indicating the importance of spot inventory to independent distributors. On the other hand, the average lead time of independent distributors in 2012 was 10.1 days, which was slightly longer than the 9.6 days in 2011. Compared with authorized/mixed distributors, the average delivery cycle of independent distributors does not decrease but increases.

  

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2012 delivery cycle

  In response to this phenomenon, Eric Xie analyzed that the light market is the same for the original factory. Therefore, the original factory is more active in the shipment of agents and the factory, giving priority to guaranteeing the delivery time of the agent, while it is lacking for independent distributors. Support, this is the reason why the average delivery cycle of independent distributors has been generally extended recently. However, he further stated that if independent distributors can face up to their own inherent shortcomings and vigorously expand the channel relationship between the original factory and the agency, the delivery cycle will not be greatly affected, but sometimes they will operate deep enough because of the channel relationship. Get the strong support from the original factory and the agent in terms of delivery time and price.

  Jason Fan also believes that when the original factory and dealer inventory levels are relatively high, the end-customer demand received by independent distributors is generally for devices that are short in the spot market, and the delivery cycle of such devices will inevitably be relatively long. At the same time, he also said that there is no sign that the shortage of goods will return. Although many peers expect the shortage of goods to come soon, the most optimistic estimate may be 5-8 years later.

  For potential shortages, Eric Xie has different predictions. "We expect this possibility in the third quarter of 2013 to the first half of 2014," he said, which is predicted based on the fluctuation cycle of the electronics industry. In the past ten years, the market has seen a wave of quotations every 2-3 years. Although there are not too many technological innovations and market hotspots to chase, the market has suppressed too much real demand in the past two years. As the U.S. economy improves, it will lead to a recovery in the global economy, which in turn will stimulate the growth of the overall market, and a shortage of goods should appear.

  ——The article comes from "International Electronic Business Information"

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