China's electronic components distribution industry ushered in new opportunities

After the first decade of cleanliness and baptism in the new century, the outstanding performance of China's electronic components distribution industry has attracted world attention. The growth rate in 2010 has reached a historic high of 38%.

With the joint efforts of the entire industry, the distribution industry has reached a new level, especially in the midst of the international financial crisis, and the performance is very prominent. Nowadays, the distribution industry is building up new forces for the development of the next ten years.

2011 is the second decade of China and the beginning of the “Twelfth Five-Year Plan”. Standing at a new historical starting point, China's distribution industry has ushered in a new period of strategic opportunities. The author hopes to explore opportunities from the following three aspects.

Inflation Looking at the current situation facing the development of the distribution industry, China's distribution is still out of a period of rapid growth and has tremendous growth potential, which is mainly reflected in three aspects. The first is that China's GDP has maintained rapid growth, and there has been no sign of slowing down in the development of the electronics industry. The demand for distribution in the economic and social development will inevitably increase. Second, the country is heavily promoting strategic industries such as triple play, smart grid, new energy, and automobiles. Provide a broad space for the expansion of the distribution industry to emerging areas; Third, new technological changes have taken place in the traditional consumer electronics, PC, and communications industries, such as the upgrading of 2G mobile phones to 3G and smart phones, and the next-generation 4G wireless technology, Lte, has received major telecom operators from all countries. The enthusiasm of merchants is constrained by the commitment of energy saving and emission reduction. The 3C field is accelerating the transformation of development methods and taking the green development path.

These are favorable conditions for the development of China's distribution industry. What is controversial is that some industry insiders may think that the economic fever behind China has brought high inflation, while inflation has brought a series of cost increases to distribution companies, which has led to a decline in the profitability of the distribution industry. It is true that last year government departments and some market viewpoints were not sure whether to enter the inflation channel from the beginning or whether they prefer to use the more vague term “inflation expectations”. To propagandize “inhibition of inflation”, inflation is by no means a rhetorical question. Become an imminent market challenge and impact for distributors. From raw materials to components, from oil prices to logistics costs, from office operations to employee salaries, the prices of all commodities are rising.

In the inflation channel, companies face four unfavorable factors at the same time. First, inflation is usually accompanied by a rise in the price of means of production, which increases the cost of the company. Second, the government usually uses the method of raising interest rates to curb inflation. Undoubtedly, it will increase the capital cost of the company and bring pressure to the company's capital chain. Third, inflation will cause the company's accounts receivable to depreciate significantly. Fourth, it will increase long-term investment risks. Long-term investment projects occupy a large amount of funds, the construction period is long, and the higher the inflation rate, the greater the project construction costs, which may cause the original project's capital budget to lose control.

The direct cause of inflation is the excess flow of goods over goods. It is actually a redistribution of wealth. Businesses and individuals are the same. When inflation risks intensify, if they respond properly, after prices stabilize, not only do the assets not shrink, but they can To lay the foundation for further development. In other words, inflation has a mixed pros and cons for the development of the company. Companies need more wisdom and courage to deal with inflation.