Last year’s outbreak of goods shortages and supply fluctuations caused by this year’s earthquake in Japan have created an opportunity for rapid growth of the independent distributor’s spot trading business, but through interviews with leading independent distributors, we have found that forward-looking companies are not happy with it. If you don't win, you will not relax your layout for long-term development. They may go deep into professional procurement and service providers who transform themselves into industries, or strive to develop and deepen diversified businesses.
In summary, the future development of independent distributors is no more than two directions. Horizontal is to broaden the business scope and provide more value-added services, especially long-term order business and inventory consignment business; vertical is to dig deeper into sub-industry customers and become Customers are trusted long-term partners.
Expanding local customer base As an international independent distributor, Advanced MP's and Astute's customer base characteristics are mostly concentrated in large international OEMs or EMSs and are relatively high-end industries. For example, Advanced MP 60% customers come from this type. The rest are local medium and large-sized OEMs in China. Most of them are customers with a wide range of products but high-end customers. Sennheiser also focuses on international EMS and OEM customers, and its global revenue. Nearly 50% of the business comes from aerospace, military and other fields. This distribution of customer bases on the one hand shows that its major international customer advantage stems from the historical foundation of common growth and joint development of the international market. On the other hand, it also shows that they have not proposed a suitable market strategy for Chinese local customers, or they have not The local market shows enough flexibility.
With the rise and growth of the local manufacturing industry in China, and even some large-scale manufacturers have taken steps to internationalize, independent distributors can no longer afford to win this part of the market. Wang Zhenyu, purchasing director of Advanced MP Asia Pacific, said that one of the goals of this year is to expand this part of the customers who want to become multinational companies. He said: "The first task facing the international market is to obtain more support from international suppliers. Advanced MP is a 33-year-old veteran independent international distributor, and its product quality control can be provided globally. Corresponding support, especially the production support of these multinational companies in factories in other countries."
Advanced MP not only hopes to meet the overseas procurement needs of China's large manufacturers, but also hopes to develop more comprehensive cooperation with them. Another major direction is inventory consignment. Wang Zhenlu said that in the past, Advanced MP only used the method of clearing goods to process excess inventory from large local manufacturers. Now it is hoped that the cooperation will be able to interact in both directions and provide them with inventory consignment services. He believes that Chinese manufacturers, especially those with a Chinese character background, are extremely sensitive and sensitive to the understanding and handling of excess materials. With the continuous deepening of advanced supply chain management concepts, large manufacturers have actively tried inventory consignment services to achieve excess inventory. Maximize value.
At present, Advanced MP has a team of about 100 people in China. A team of about 30 people is engaged in excess inventory processing and VMI business. The company’s global inventory is worth approximately US$50 million and is located in North America, Hungary and Shanghai Waigaoqiao. "We also pay attention to maintaining these stocks' rapid turnover. The production date is also controlled within 18 months according to the customer's requirements," said Wang Zhenxi.
In summary, the future development of independent distributors is no more than two directions. Horizontal is to broaden the business scope and provide more value-added services, especially long-term order business and inventory consignment business; vertical is to dig deeper into sub-industry customers and become Customers are trusted long-term partners.
Expanding local customer base As an international independent distributor, Advanced MP's and Astute's customer base characteristics are mostly concentrated in large international OEMs or EMSs and are relatively high-end industries. For example, Advanced MP 60% customers come from this type. The rest are local medium and large-sized OEMs in China. Most of them are customers with a wide range of products but high-end customers. Sennheiser also focuses on international EMS and OEM customers, and its global revenue. Nearly 50% of the business comes from aerospace, military and other fields. This distribution of customer bases on the one hand shows that its major international customer advantage stems from the historical foundation of common growth and joint development of the international market. On the other hand, it also shows that they have not proposed a suitable market strategy for Chinese local customers, or they have not The local market shows enough flexibility.
With the rise and growth of the local manufacturing industry in China, and even some large-scale manufacturers have taken steps to internationalize, independent distributors can no longer afford to win this part of the market. Wang Zhenyu, purchasing director of Advanced MP Asia Pacific, said that one of the goals of this year is to expand this part of the customers who want to become multinational companies. He said: "The first task facing the international market is to obtain more support from international suppliers. Advanced MP is a 33-year-old veteran independent international distributor, and its product quality control can be provided globally. Corresponding support, especially the production support of these multinational companies in factories in other countries."
Advanced MP not only hopes to meet the overseas procurement needs of China's large manufacturers, but also hopes to develop more comprehensive cooperation with them. Another major direction is inventory consignment. Wang Zhenlu said that in the past, Advanced MP only used the method of clearing goods to process excess inventory from large local manufacturers. Now it is hoped that the cooperation will be able to interact in both directions and provide them with inventory consignment services. He believes that Chinese manufacturers, especially those with a Chinese character background, are extremely sensitive and sensitive to the understanding and handling of excess materials. With the continuous deepening of advanced supply chain management concepts, large manufacturers have actively tried inventory consignment services to achieve excess inventory. Maximize value.
At present, Advanced MP has a team of about 100 people in China. A team of about 30 people is engaged in excess inventory processing and VMI business. The company’s global inventory is worth approximately US$50 million and is located in North America, Hungary and Shanghai Waigaoqiao. "We also pay attention to maintaining these stocks' rapid turnover. The production date is also controlled within 18 months according to the customer's requirements," said Wang Zhenxi.
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