China electronic component import and export increased 27%

China's electronic and information industry saw 24.1% increase, reaching 6.3645 trillion ($ 979 billion) through the whole year of 2010. Facing such a great achievement, China electronic manufacturers are positive on the future. 54% of the interviewee said they were planning to place more orders to the electronic components distributors.They have prepared well for the momentum growth. The demand of electronic components is increasing on the market, from 2010 December to 2011 January, IBUonline website magazine interviewed China electronic components authorized distributors and mixed distributors,30% of whom said the delivery time has been shortened, while half of the interviewees said the delivery time remained as before. Major parts of the components are purchased from distributors. The investigation result showed, in 2010, China electronic product manufacturers purchased 210 million ($ 32 million ) on average and 54% of them were purchased from distributors. The investigation is aimed on knowing China electronic product manufacturers and components distributors challenges and future development plan. IBUonline interviewed 147 senior managers among china top electronic components distributors and 1,629 top managers and procurement managers in china electronic manufacture enterprises. Apart from shortage of electronic components, authorized distributors and mixed distributors faced some other challenges, including intensified market competition (54%), profit drop (41%), cost increase (28%) and suppliers change in sales channel or strategy (25%) etc. In order to overcome the challenges, authorized distributors and mixed distributors are striving to exploit new market (51%), developing new products (38%), expanding sales network (31%) and increase promotion (28%) to maintain the competitiveness. Independent distributors faced the biggest challenge---the fierce market competition, 37% of them expressed that they are changing strategies into mixed distribution route to strengthen the competitiveness. In fact, compared with 2010 survey, 18% of interviewees of electronic distributors are independent distributors in 2011, while 24% of interviewees of electronic distributors are independent distributors in 2010. Quality is the first concern for electronic manufacturers

IBUonline representative said: the survey showed china electronic distributors could benefit from china electronic industry increase momentum in 2011, the aim of the survey is to let distributors know china electronic manufacture demand so they could change strategy to adapt to the market. 66% interviewees expressed that the quality is the concern when they are cooperation with the distributors; the next concern is about product price and delivery time. Changing other substitute electronic components is the counter measure to cope with delivery cost and product price. China electronic manufacturers are considering signing a contract with suppliers to make storage safe and increase authorized suppliers list to promote supply chain further.