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Grab the beach for technology-based distribution and demand benefits from technological innovation

Grab the beach for technology-based distribution and demand benefits from technological innovation

  • Categories:Activity
  • Time of issue:2020-08-11 23:04
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(Summary description)At the moment, most distributors and agents continue to increase their technical value-added services seem tacitly, showing the general trend of technical distribution...

Grab the beach for technology-based distribution and demand benefits from technological innovation

(Summary description)At the moment, most distributors and agents continue to increase their technical value-added services seem tacitly, showing the general trend of technical distribution...

  • Categories:Activity
  • Time of issue:2020-08-11 23:04
  • Views:

  At the moment, most distributors and agents continue to increase their technical value-added services seem tacitly, showing the general trend of technical distribution...

  In the current electronic trading market, information is transparent and rapidly changing, and the competitive situation tends to become fierce and service homogenized. Upstream original factories and agents intensified integration and mergers, midstream distributors have transformed e-commerce due to the development of the Internet and big data, and downstream customers’ product innovation needs continue to increase... For IC distributors, if they only rely on traditional distribution models Development, its market competitiveness will be weakened, and business risks will rise simultaneously. In this regard, "transformation" has become one of the unavoidable topics for distributors. Most distributors and agents continue to increase their technical value-added services seem tacitly, showing the general trend of technology-based distribution.

  Technology-based distribution track is getting crowded

  The current consensus in the industry is that with the upgrading of manufacturing in China and the high level of national importance attached to the semiconductor integrated circuit industry, the development trend of China’s local IC distribution industry: one is to penetrate the upstream of the IC industry, and the other is to provide customized products for key customers. IC solutions. Therefore, distributors and agents with technical hard power can quickly integrate existing product resources upward and provide customized solutions based on customer needs, thereby further shortening the total cycle of the entire supply chain and accelerating the implementation of product technology. Promotion. As a result, technology-based distribution can more effectively increase the company's comprehensive gross profit margin and create higher brand benefits.

  As a leading domestic authorized distributor of electronic components in the fields of power electronics and new energy, Shenzhen Pengyuan Electronics Co., Ltd. believes that technology-based distributors create value for customers and original suppliers. For the original factory, relying on close customer relationships, technical distributors have more advantages in mining and service segmentation applications; for customers, technical distributors have a better understanding and application of original components. profound. With continuous investment in technology, technical distributors are an important bridge that can bring value to customers and original factories.

  It is reported that Pengyuan Electronics has provided many cutting-edge solutions for the power electronics industry by continuously increasing its investment in technology research and development in the past few years. In early 2018, Pengyuan cooperated with South China University of Technology to launch the world's first silicon carbide welding machine program. In 2019, the 200kW single-tube silicon carbide electric drive, 11kW full silicon carbide bidirectional car charger, and Touteng moment PFC were launched in 2019. These technical solutions were the first in the domestic market, which promoted the industry's silicon carbide application level and end products. The level of technology is raised to a new level. In the first half of 2020, Pengyuan Electronics has launched a complete set of digital control PFC solutions, including: bridgeless PFC, totem pole PFC, two-way interleaved PFC, three-way interleaved PFC, single-channel PFC; at the same time, digital (MCU) controlled PFC The +DC/DC solution is under development and will be launched in the second half of this year.

  In an interview, Tang Hainan (Neo), Marketing Director of Shenzhen Etech Electronics Co., Ltd. said: “At present, end-customer manufacturers are increasingly expecting long-term strategic cooperation with distributors or agents with technical backgrounds. On the one hand, In terms of pre-sales technical support, due to the instability of market demand this year due to the outbreak of the epidemic, many end customers choose to avoid market risks by transforming products/accelerating iterative products, so the demand for pre-sales technical support is particularly urgent. The service principle of the company is fast speed, accurate matching, and low cost. It takes no more than 3 days from the end customer’s selection request to the sample delivery. On the other hand, in the overall solution, when the customer proposes the overall demand for the wireless transmission solution, it is easy to reach Kay will connect with the original upstream chip factory for the first time, and go to the end customer R&D site with its FAE team to communicate the overall R&D solution in three aspects."

  Grab the beach for technology-based distribution and demand benefits from technological innovation

  Tang Hainan, Director of E-Tech Electronics Marketing

  Shenzhen Unibetter Technology Co., Ltd. has been deeply involved in the traditional distribution model for ten years. Starting from the second half of 2018, while maintaining the original business sector unchanged, it has tried to extend the "agent line material number promotion business model" to The direction of "the promotion of the technical solution model of the agency line" has changed. After a year of running-in and optimization, Unibetter has achieved good results in specific market areas, including TWS headsets, Internet of Things, smart home and brushless motor applications. IC solutions that meet the needs of the consumer market.

  "For a distributor who lacks a technical gene, it is almost always'death' to make technological distribution transformation. But for Unibetter, seeking change has always been the vitality of the enterprise, rather than'waiting for death' in operation, It’s better to take the initiative to'seeking for death', perhaps there is still a chance to break out of the siege and live toward death!" Wu Jun, general manager of Unibetter Technology, said frankly: "We are well versed in our strengths and shortcomings, so we have formulated a technical service business plan. Core strategy—competitive advantage and differentiation. Specifically, the technical design team focuses on specific market areas with competitive advantages, provides customers with standardized solutions and applications, and realizes rapid results conversion; at the same time, it quickly responds to customers' individual needs Respond, and from the perspective of program cost, combined with its own brand line to provide a relatively better cost control program and provide differentiated technical value-added services."

  Grab the beach for technology-based distribution and demand benefits from technological innovation

  Wu Jun, General Manager of Unibetter Technology

  The Breaking Point of the Transformation of Technology-based Distribution

  However, many small and medium-sized distributors have been discouraged by the many transformation conditions of technology-based distribution, high transformation costs, long transformation pain periods, and realization problems after transformation. In fact, the common problems and difficulties in these processes are the breakthrough points for the successful transformation.

  1. Downstream customer certification takes a long time

  Pengyuan Electronics believes that the implementation of new technical solutions on the client side is relatively slow, and it takes time for some cutting-edge technologies to be recognized by customers. In this regard, through long-term cooperation with customers to establish mutual understanding can improve efficiency.

  Unibetter Wu Jun shared: "To do technological transformation, technical talents need to run in with the agency line, market opportunities need to be grasped quickly and accurately, and the original factory/distributor/customer tripartite cooperation requires sufficient capital reserves; the most important thing is the product plan And the need for constant trial, constant trial and error, and constant development-these are all time costs. Therefore, if traditional distributors want to upgrade their technology, they must set phased goals and give themselves and their team enough time to do so. Growth and exploration. The most important thing is to be good at learning the transformation experience of successful people, and seek cooperation, try to avoid detours and development misunderstandings."

  2. Changes in ideology

  Pengyuan Electronics pointed out that sometimes some customers do not realize the importance of the added value brought by technical distribution, or do not realize the technical investment paid by distributors in the process of implementing customized technical solutions. These changes in consciousness require distributors to spend 100% effort and actual results to promote.

  Wu Jun believes that in today's era of constant technological hotspots and technological innovations, the electronic chip industry does not stick to a single development idea. In the same way, distributors closely follow the development trend of China's chip industry and effectively combine their own corporate advantages to continuously strengthen and empower their core business, and they will surely be able to top the runway of their choice.

  According to reports, Unibetter chose a number of suitable independent runways for itself. On the one hand, Unibetter actively develops common-mode solutions through market research to quickly meet and respond to customer needs; on the other hand, it closely follows customer individual needs, tailor-made, multiple verifications and optimizations, and more and better realizations Transformation of the results of DI/DW. At the same time, Unibetter also established strategic partnerships with a number of solution companies when it was unable to meet its own technological development capabilities. Finally, a trinity of technological development ideas of self-development, customer customization, and collaboration with external solution providers has been formed.

  3. Lack of technical talents

  A key node of technical distribution is to solve the problem of compound talents. Edakai Tang Hainan believes: "Distributors need sales engineers with a research and development background and know-how. When they communicate with clients on R&D, they can quickly and accurately determine the customer’s technical requirements for the product. In this regard, Edakai Through years of industry accumulation, a technical talent pool has been established, which can quickly match suitable sales engineers."

  Unibetter Wu Jun also pointed out that since we want to extend from distribution to technology, we first need corresponding technical personnel, otherwise it will always be a company that sells part numbers. In order to better develop from "technology passive" to "program initiative", from the beginning of the establishment of the agency department, Unibetter adopted elite recruitment to supplement technical talents, and formulated a training and evaluation system for agency business technology and sales personnel; At the same time, it is also trying to establish production-university-research cooperation with electronic technology universities to cultivate talents, so as to fully meet the supplement of the company's external technical talents and the tempering of the internal technical team.

  4. Long payback period

  To transform into a technology-based distributor, the investment in manpower, time, capital, and opportunity cost is still very large. Unibetter Wu Jun believes that if you want to keep the clouds and see the moonlight, you must endure impetuosity and give time to nurture.

  "For traditional distributors, they are accustomed to the short-frequency and fast market rhythm of selling part numbers. At the beginning, it is difficult to adapt to the period of market development and cultivation accumulation in the early stage of technical distribution. They may invest a lot of time, manpower and financial resources, and There will be no short-term results. Therefore, when Unibetter Technology began to make technological transformation, he was prepared for a period of no output. Unibetter began to make the transformation of model exploration three years ago. It’s only since the beginning of the past year that the initial results have been achieved, and the early stage has been quietly working." Wu Jun said.

  In fact, many other problems will be encountered in the process of technological transformation, such as integration with the original distribution business, efficiency of cooperation with the original factory, material stocking plans and fund coordination problems for customers, and so on.

  Technological Distributors' Attempts in Domestic Substitution

  Judging from the current escalation of Sino-US trade frictions, high-tech competition between the two countries will be the eternal theme of the future. For chips that are indispensable in the industry chain, China must go out of its own development path. From the springing up of domestic chips in the past two years, we can see that the replacement revolution of domestic chips has begun. If a large-scale advancement of chip localization is to be realized, technology-based distributors or agents are indispensable.

  Unibetter Wu Jun analyzed that, first of all, the main work of the domestic original factory is to continuously optimize the products to meet the needs of the market, and to continuously implement product upgrades and iterations to meet the needs of replacement. Therefore, the initial development of the original factory requires more energy and capital to be invested in product research and development, technological innovation and production line investment, rather than investment in the market. And these market-side opportunities, such as excavation and marketing, need to be completed by distributors or agents, so that each has its own responsibility and specializes in the technology industry.

  Secondly, for the original factory, distributors or agents are more familiar with the market and customer needs, while distributors with the ability to design technical solutions can better capture these products and market hotspots, and collect market dynamic feedback in a timely manner To the original factory, give it more positioning and direction of the product development path. Achieve a development collocation of one side dominates the inside, one side dominates the outside, and the integration of the inside and the outside.

  "To sum up, competition in the IC market will eventually become cost competition or technical barrier competition. The development of domestic chips requires not only cost control and fighting, but also the need to seek high-quality technical distribution agents to work together. Do a good job in product upgrades and technological innovation, and better realize the transformation of client demand and the implementation of solutions, in order to achieve non-price substitution in domestic substitution, but the development path of value substitution." Wu Jun concluded. "The realization of domestic substitution is by no means a simple'stacking'." Pengyuan Electronics emphasized, "Power electronic products need a high-efficiency product solution. Therefore, for corresponding products, Pengyuan will develop more reasonable solutions to improve components. The efficiency of the use of this product is very helpful to the realization of domestic substitution."

  Regarding the successful cases of large-scale distributors transforming to local OEMs in recent years, Unibetter Wu Jun said: “As the saying goes, soldiers who do not want to be generals are not good soldiers. In the chip market environment, the main supplier role is nothing more than OEMs. Agency and trade. Judging from the development trajectory of many chip companies, there are not a few successful companies from the strategic change from "trade" to "technology". The ultimate goal of these companies is to continuously increase business competition barriers, increase profits, and do a good job in the market. Stable development, upstream and downstream expansion strategy. This development path is worth learning from distributors."

  Edakaitang Hainan also agrees that at present and for some time in the future, distributors who have the ability to develop and design chips in the Chinese mainland market must be even more powerful, and they will be able to cope with the various needs of domestic end customers in the future. Can be expected.

  Technical distribution is not the only way out

  The role of technical distributors is not the only way for distributors to transform and develop. The market demand for chips is so great that every company should find its own unique market positioning.

  According to Wu Jun’s observations, distributors have seen a clear pattern of division in recent years: there are several categories: traditional type, emerging e-commerce type, technical solution type, and comprehensive type. Some are reshaping their own business processes, some are tapping their own channel competitive advantages, and some are

  It is to improve customer purchasing experience, some improve storage matching capabilities, some improve soft service capabilities, some provide more financing and stock support for customers, some focus on better satisfying customer technology upgrades, and some focus on the original chip factory. Efforts to develop... But no matter how the type of transformation changes, the purpose of distributors is to maximize the value of the company in the client, and constantly improve and upgrade their core positioning.

  "As for which development model will stand out in the end, I dare not say." Wu Jun said, "For Unibetter Technology, in the future development, it will still stick to the core business of the distribution field, and dig deep from the breadth of customer demand to demand. Potential. In the future, we will also expand the market share and customers of communication equipment, 5G, Internet of Things, new energy, industrial control, automotive electronics, etc., in combination with the national new infrastructure technology strategy, and look for high-end products that match existing customers and future markets. In the next 3-5 years, we believe that in the next 3-5 years, Unibetter Technology will be able to achieve the dominance of specific products in the technical field, the professionalism of the program design for customer needs, and the market locking of original products. Comprehensiveness."

  Under the unpredictable situation of global economic and political changes, Yi Dakai Tang Hainan believes that the rise of domestic semiconductors is the inevitable way, and Yi Dakai, as a local distributor, will increase the agent share of domestic semiconductor product lines. In addition, under this epidemic, the product flow in the supply chain is also restricted by the epidemic and other aspects. Distributors can consider establishing transshipment centers in various regions to improve logistics adhesion to clients. In the post-epidemic era, it is believed that many people have a new understanding of the demand for medical products. Etech will continue to expand the domestic chip product line related to medical care, and strive to become a Chinese semiconductor supplier that serves the world.

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