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Why choose Electronic Components Distributor?

Published Time: 2022-09-09 23:05:55
Original Supplier is limited by limited sales capabilities and technical support service capabilities, and can only focus on serving a small number of global customers.

Electronic components include active components and passive components. Active component products often have complex functions, strong specialization, and difficult product application. In addition to providing customers with basic technical services such as selection and matching, distributors also need to provide customers with specific product application solutions , which based on electronic components to achieve specific applications of related electronic components.

Types of Electronic Components Distributors

Authorized distributors : Authorized distributors are mainly for electronic product manufacturers with a certain scale of procurement needs in the industry, and the distribution categories are relatively complete.

Independent distributors  :Mainly serve small customers, or meet the temporary and small-batch procurement needs of large customers.

Catalog Distributors: Offer a wide range of products, but in small quantities and at high prices.

E-commerce platform: The material of the e-commerce platform is mainly from distributors, which mainly meet the material requirements of most customers with small batches.

Why don't customers purchase directly from the original factory?

1. Original suppliers are highly concentrated, and terminal electronic product manufacturers are highly dispersed. Original suppliers can only serve a small number of global large companies with high demand, Unable to serve manufacturers of terminal electronic products with low demand.

In the Original of the electronic component industry chain, the production and supply of the same type of electronic component products are mainly controlled by a few manufacturers. For example, the automotive LED particle market is mainly concentrated in a few manufacturers such as Osram, Philips Lighting, Nichia, and Seoul Semiconductor. Passive components The market is mainly controlled by manufacturers such as Murata and Yageo.

In the terminal of the electronic components industry chain, the application fields of electronic components are extremely wide, and the common fields include communication connection, automotive electronics, consumer electronics, industrial control, etc. There are many manufacturers of power plant products. 

As original suppliers are highly concentrated, terminal electronic product manufacturers are highly scattered, and the original and terminal of the entire industrial chain are highly asymmetrical, the original factory is limited by limited sales capabilities and technical support service capabilities, and can only focus on serving a small number of global customers.

2. Electronic components distributors can provide supply chain services and technical services.

With the increasing complexity of electronic products, the demand for electronic components has become more diversified. It is difficult for the procurement department to complete the task of purchasing all electronic components for each supplier one by one. Rely on distributors to provide integrated supply chain services. At the same time, a large number of complex supply chain services are often involved in the procurement process(such as order management, inventory management, logistics management, and payment management ). The limited sales capacity of original suppliers is difficult to meet the needs of a large number of terminal customers for supply chain services.

In addition, due to the different tasks of original manufacturers and distributors, the technological development of enterprises at different stages is different. The technological development of electronic component design manufacturers is more focused on the product design of electronic components themselves, so as to take the lead in launching products with better performance and better performance. Lower cost electronic components products;

The core work of terminal electronic product manufacturers is to launch electronic products that meet market demand as soon as possible, and the focus of technology development is on product integration and overall design. 

For the technical services such as the design of electronic components in the middle link, the electronic component distributors are mainly responsible for it. Therefore, end customers can obtain more timely and effective technical support services through the procurement of electronic components distributors. 

3. Terminal customers have limited purchases, making it difficult to obtain competitive transaction prices and other business conditions from suppliers.

Most electronic product manufacturers tend to have limited purchase volume, and it is difficult to obtain competitive transaction prices and other business conditions from suppliers, which is not conducive to reducing their own product costs and operating risks.

By gathering the procurement needs of many electronic product manufacturers, electronic components distributors can gain a larger market share in the segmented market and form a certain scale advantage, so that they can obtain better product and price support from suppliers and help electronic product manufacturers. Reduce product costs, improve capital turnover efficiency, and enhance competitiveness in the market.

In view of the very large scale of the original suppliers, the overall purchase scale of the end customer must be smaller than it, and most terminal customers basically do not have the possibility to purchase directly from Authorized distributors.

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