Smart phones are the largest market for semiconductor applications
. With the rapid development of the smart phone market in recent years, the semiconductor industry is also growing. However, until now, the global smartphone market is highly concentrated, causing major market shares to be swallowed by the top five mobile phone manufacturers. Correspondingly are component distributors. In recent years, we can see that component distributors continue to integrate, and even some small and medium-sized distributors have gradually withdrawn from the mobile phone market!
Overall, from the perspective of the component distributor market
, there are two obvious trends. One is that the product lines of giants are becoming more comprehensive, and the other is that small and medium-sized distributors are becoming more segmented. As a well-known representative in the field of component distributors, Mouser Electronics uses it as an example to analyze the development trend of component distributors in the future!
1. The globalization of smart phones and how distributors will respond to the future market
From the perspective of smartphone manufacturers, in terms of shipments, taking 2016 as an example, the top five domestic market shipments accounted for 66.5% of the market, while in 2015, the data was only 59.7%. In the leading quarter of 2017, the data rose to 70.4% again! In the global market, the total market share of the top five mobile phone manufacturers in 2016 has reached 57.8%, which is much higher than 51.5% in 2015. The data in the leading quarter of 2017 has also risen to 58.3%!
It can be seen that the concentration of shipments of global smartphone manufacturers is gradually increasing. The concentration of shipments reflects that the competition in the entire mobile phone market will intensify. At the same time, Internet mobile phone brands have cut prices in the past two years The phenomenon is also very serious, causing many mobile phone manufacturers to increase the price of mobile phones since the second half of 2016. The reputation is affected by the price increase of supply chain components! Under the fierce competition in the market, the gross profit margin of mobile phone manufacturers is also declining! The best example is that from the end of last year to the beginning of this year, a large number of domestic mobile phone manufacturers that had previously severely bargained prices have increased their mobile phone prices!
Affected by the terminal market
, the distributor business is also more difficult to do. As early as a few months ago, according to the mobile phone report online, for distributors, due to the concentration of customers in the mobile phone market, high market competition and low gross profit margins, some distributors even faded out of the market, and some distributors The business is trying to obtain the agency rights of some newly emerging local supply chain manufacturers to enter the mobile phone market! Based on the above situation, some small and medium distributors are constantly losing mobile phone customers, coupled with the low gross profit margin, which has caused these distributors to gradually fade out of the mobile phone market. At the same time, they have also moved from the traditional sales model to the online e-commerce sales model!
However, in Mouser’s view, although the global smartphone market is becoming centralized, there are still many small and medium-sized mobile phone companies, although their shipments are not large. In the early years, if they were small or free brands, the design should be It is mainly price, maybe only a few features are needed, but he cares more about price.
Mouser Electronics said: "Prices will be selected in the selection of goods. I think this will not be our customer base, because quality considerations are not the most important. But when we see the transformation, many domestic white cards It’s also done very well. Many young people are now more accepting. Even if it’s 10,000 units, I think there are hundreds of resistors, and 100,000 units are also millions. For us, it's also a lot."
2. What opportunities does the maker bring?
While the smart phone market continues to be centralized, the number of maker calls has been extremely high in recent years, which has also brought opportunities for many distributors, and Mouser Electronics is targeting this market. From the perspective of the attributes of the maker, innovation and entrepreneurship often start from small stores, and it is impossible to make a big one at once. But in the past, when distributors only focused on offline, most of the customers they served were mainly enterprises, and less targeted at individuals. When it comes to innovation, it means starting from an early age. Doing online can achieve higher efficiency, unlike doing offline.
Maker is also a business opportunity for component agents and distributors. Because in the past, small and medium-sized enterprises often encountered a series of problems in the process of small-volume component procurement, such as difficult to buy genuine products, slow delivery, long communication and consultation time, and most foreign component e-commerce companies do not support direct payment and exchange in RMB The high exchange rate and overseas freight are all aviation models. After arriving in Hong Kong, customs clearance is required. These three barriers have greatly restricted the development of foreign component e-commerce in China. It is precisely because of the existence of many of the above reasons that the local yuan The growth of component distributors means huge development opportunities for local component distributors, and a formal channel that can support the rapid procurement of small quantities of components has become a rigid demand. In this market environment, a large number of component distribution companies have poured into the Internet market, and a large number of component e-commerce platforms with online transactions as the core have been launched. All major companies expect such Internet platforms to quickly improve procurement efficiency and expand enterprises. Own market share.
According to Mouser Electronics, "It is difficult to find a customer group like Makers. If we put the products we distribute online, we will use website optimization to attract engineers to your website. This is one of them. The other is Engineers are designing, and the original demand is very small. If you buy a small amount of something that is less than the standard packaging volume, it is really difficult to obtain in the market before. With Mouser’s business form, it focuses on providing small batches Service, I think we are also quite lucky. Just when the Premier of the State Council mentioned double innovation, we were positioned in the domestic market. This has also changed a lot from the business form of distributors. It changed from offline in the past. Online, it’s easier for everyone to accept."
Just entered the domestic market in the early days, everyone is asking who will buy components online? And with so many components, it must be faster to find someone for service. In addition, the advantage of online is that the latest products of the original factory can be released in a timely and very fast manner. In the past, when offline, there were new products and new technologies, and it was necessary to rely on technical personnel to promote them. Now these makers It is blooming everywhere, so online can efficiently provide the latest technology to everyone.
At the same time, unlike many distributors who specialize in a certain field, Mouser Electronics pays more attention to a wide range and comprehensiveness. For distributors who specialize in a certain field, they must be more detailed, so they will need a lot of application engineers. He has to deal with his customers and understand their design needs. This part is facing us. Customers are very different, because he is increasing the amount of existing customers.
Especially there are many customers who don't like to be disturbed, especially the bigger the customer, the more so, because when they are designing, there will be a lot of confidential things that they don't want to disclose. "Then we are also seeing the increasing autonomy of engineers nowadays. In fact, many times there is no need to go through technical guidance or recommendation. In fact, he can go through the online and find a lot of relevant information. To get the goods. So the customers we face are very different." Mouser emphasized.
3. Mouser Electronics' development strategy in the Chinese market
In addition, there are more and more domestic manufacturers, and the original factories are getting bigger and bigger. However, Mouser currently does not have many agents for the domestic original factories, because the development trend of domestic semiconductors is that everyone feels that they are replaced by domestic ones. Like educational innovation, some domestic companies are gradually expanding their agency business. So, does this mean a crisis for Mouser Electronics' overseas component distributors?
In this regard, according to Mouser Electronics, it has been paying attention to the development of domestic original factories. Mouser has also had agents in the past few years. For example, Seeed Studio and Dioo Microcircuits are cooperating, but signed Distribution rights are like getting married. It is found that some new semiconductor companies may have done a lot of research and development in the past for certain customers. Sometimes they may not feel the need for distributors.
So it is not whether Mouser should cooperate with these people, but whether these people think this is a good model. In addition, Mouser has some persistence when cooperating with many original manufacturers. Mouser Electronics said: “Like what new technologies the new suppliers we are cooperating with will help our customers. Only when we can design and develop more innovative applications, we can make this pie bigger. If we just The continuous addition of new suppliers in the same technology and product fields is not necessarily a good phenomenon if it becomes competition. We consider complementarity to add new suppliers, so we hope to see some domestic manufacturers provide Many new technologies, which we are very happy to see."
In addition, we can also see that in recent years, many online channel distributors are exploring their own value-added services! The same is true for Mouser Electronics. According to its introduction: "If you go to our official website, we are not just selling goods. We have technical information, divided into applications, and divided into technologies. Our information is not from the original factory. There are also technical marketing to produce a lot of original articles and a lot of dry goods. We consider that engineers have to find a lot of literature when they study, and we can find a lot of information from us."
In addition, Mouser's official website can also easily find the latest products, whether it is by product, original factory or time, and there are many good tools, one of which is the BOM tool optimized this year. For example, there are thousands of types of resistors and capacitors. If you find a supplier, you may find a lot of people, and it takes a lot of time. This tool is all in the table, as long as you open an account and upload that, you can get answers quickly.
"For example, how much is your quantity, and how much inventory do I have. Now electronic components are replaced very quickly. When designing, we may find some old products. In fact, we don’t want to design, especially if he For EOL, that is, electronic components that are about to be phased out, we do not want him to design, so we will mark NRND on it, which means that this product is not recommended for the design of new products." Mouser Electronics explained.
Moreover, Mouser Electronics and Grant Jinyuan have been working together for the third year, investing a lot of capital, and the ultimate goal is to quickly convey some of the world’s most innovative technologies to these engineers, because in the past, everyone may be in the community. There have been a lot of discussions on the forum, things may be rather blunt, and Mouser Electronics hopes to communicate technology through another more lively way.
There are also some new activities launched this year, such as Smart City. Mouser Electronics has selected a city in Europe, Asia, and America. The difficulties and problems encountered in each city are also different. Of course, in addition to this, most of Mouser's business is doing B2B docking with companies. At the same time, it has sponsored racing driver Dong Hebin for six years, because racing is not only about speed, but also about the latest technology and the highest quality. Semiconductors and components.
Mouser Electronics emphasized: “We are not doing business with B2B, there are many C, many individuals. We also brought Dong Hebin into the campus, hoping to use his personal experience to give students like Tongji University some advice, these students are all Very top-notch, build gasoline-powered or electric-powered racing cars from the ground up to fight with other university students all over the world. We hope that Dong Hebin will convey his driving experience and the accumulated experience of working with the world’s top technical teams, and give students some suggestions. So I think this is also our social responsibility."