How should distributors in the component field do e-commerce?

       This issue is a topic that has been discussed a lot in the industry recently, and I have also discussed this topic with my peers.Electronic componentsWhy are there so many trading companies in the industry? Why can people who have been in this industry for half a year start a company? What is the reason why the threshold of this industry has dropped so low? What makes us grow so fast? There's only one answer: the Internet.

From a macro perspective, the Ministry of Industry and Information Technology released the e-commerce “Twelfth Five-Year Plan” development plan on March 27 this year, which clearly states that by 2015, e-commerce transaction volume will quadruple from the end of the “Eleventh Five-Year Plan” to exceed 18 trillion yuan. Among them, the scale of inter-enterprise e-commerce transactions exceeded 15 trillion yuan; the online retail transaction volume exceeded 3 trillion yuan, accounting for more than 9% of the total retail sales of consumer goods.

​ ​​ 2011 Global Semiconductor Revenue Ranking, Qualcomm Has the Strongest Growth,IntelStill No. 1 - International Research and Consulting OrganizationGartnerThe latest statistics show that2011Global semiconductor revenue reached US$306.8 billion, compared with2010An increase of US$5.4 billion, or 1.8%. According to the latest forecast,2016worldwidesemiconductor marketRevenue will exceed the US$400 billion mark, reaching US$411.6 billion (approximately NT$12.34 trillion), setting a new milestone in the semiconductor market. If you don’t get a share of it, you will miss a golden period!

B2C e-commerce refers to various commercial and trade activities that use the Internet as a tool to enable buyers and sellers to conduct face-to-face transactions. In 2002, B2B websites in the industry began to emerge, and it was also in 2002 that trading companies in the component industry began to explode. With a network cable, a computer, a phone, a fax, and a B2B platform account, you can start a business. A platform account costs more than 2,000 yuan and publishes 80,000 items of inventory, creating N millionaires. Without the Internet, this situation would not have occurred, and there would not be so many component traders in Huaqiangbei. Most trading companies can start from scratch and rely on the Internet. The Internet has such great power, why don’t we make good use of it? At present, we are all conducting business around the Internet. Companies that can make full use of the Internet can do better, develop faster, and make more money.

What advantages does B2C have over B2B? At present, B2B only realizes electronics, but does not achieve the purpose of business. After the rapid development of B2B in recent years, there will naturally be many problems, such as numerous merchants, serious homogeneity, and a lot of spam information. For its own benefit, B2B has lowered the threshold, attracted too many supplier members, and lacked supervision, resulting in severe excessive competition. In addition, there is already a serious excess of information, and the repeatability is too high, leading to a large number of customer fraud incidents. Alibaba’s “dishonesty incident” in 2011 is a good example. In this industry, it is common to be fooled by fake products, and it can be said that it is impossible to guard against it! If companies can build their own B2C e-commerce platforms, they can enhance their brand image. You can make better use of Internet technology to promote your company and show your strength to customers.

At present, many of our companies are doing very well and making a lot of money, but few of them pay much attention to their own company's brand building. We should make customers feel at ease as soon as they see your company's brand, and they will not have any doubts about you. At present, many companies do not realize the added value of brand. For example, when I was buying goods, Company A had a particularly good reputation in the market, while Company B was a new company with little reputation. For the same model, Company A quoted me 5 yuan, while Company B quoted me 4.5 yuan. At this time, I will choose Company A because I believe in it. For another example, I ordered an ADI material before. This material is a relatively popular material. The price I quoted was always lower than others, and the ranking was higher. A lot of people asked about it. However, I have not sold this product for a year. Finally, it was out of stock for a while and was bought. After these two things, what I concluded is that the same product, the same price, and the same quality can be ranked first. Your company also needs to have a brand and credibility. Now in the industry, many companies only have people in the industry who can tell whether something is good or bad. We should shape our own brand image, strengthen our own brand building, and recognize the importance of brand. Therefore, I think we should start from the current sales promotion to brand building. Today, with market information changing rapidly, brand building is of course a top priority for enterprises if they want to stay at the forefront of the trend.

Let’s take a look at the investments made by authorized agents in online transactions in the past two years and their efforts to optimize online transactions. AVNET's AVNETEXPRESS and Dalianda's WPI online transactions are developing rapidly. Future has also established a FAI department for online transactions of small and medium-sized customers. The domestic online trading websites of Element14 and RS, which we are familiar with, have done a lot of optimization and website revision. ONLINE There was no online transaction two years ago. At present, ROC is also developing in this direction, and I believe it will launch its own online trading website soon. ICBUY and Wuhan Liyuan, Lierda's relatively powerful authorized agents in China, are actively developing e-commerce platforms. There are also companies like Jialichuang Company's Lichuang Mall, etc. According to my statistics, there are about 20 unauthorized distributors. (We can search on Baidu to learn about relevant reports on Lichuang Mall and Wuhan Liyuan’s listing prospectus).

What should we do? First, form your own team and develop your own website. (Requires certain financial support) Second, find a professional website building company to develop your own mall (Shenzhen Wardpiou Network Company is the only one in the country that builds websites for the IC industry) Third, join other professional platforms such as Taobao and Tmall. Those of us who are careful can also see that Alibaba has now begun to focus on online transactions. Alibaba's platform has huge traffic, and we can make full use of these resources. If we have funds, we can go big, and if we don't have funds, we can go small. In the world of martial arts, speed is the only thing that can't be broken. The same is true for us in business. What we pay attention to is the word "quick". Quickly discover business opportunities, quickly follow trends, and quickly change strategies. B2C is the current trend, and whoever can keep up with the trend will be the winner; if you don't pay attention, today's overlord may become a thing of the past. This is also the most basic sense of crisis that we must have when running a business; if you don't do it, then you will have no chance at all. Before we do it, we must find a model that suits us based on the nature of our business and operating conditions. Think about it, what do you need? No matter how you do it, what we need to remember is the strategy of Internet entrepreneurship: start fast, fail fast, and adjust fast. (If you have an idea, do it immediately; if you find it’s not suitable for you, retreat decisively and don’t let yourself sink too deep; if the strategic positioning is wrong, adjust it immediately so that the company can quickly embark on a path that suits you.

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