ICZOOM : Promising Future of the Electronic Componants Industry
Lei Xia,CEO of ICZOOM
ICZOOM handed over a beautiful report in 2017. The CEO, Lei Xia, said in an interview with International Electronic Business, that ICZOOM has more than 8000 registered users and is expected to increase the count to 40,000. ICZOOM did not disclose how much annual revenue it reached because it is preparing public capital raises, currently in the auditing phase.
Lei Xia pointed out that the market since 2017 is growing under the robust environment of the global electronic components distribution industry. The ICZOOM B2B business model brings disruption to the traditional distribution model, with manufacturers, authorized agents, IDH/ODH/EMS, traders, mixed distributors, and terminal manufacturers working to adapt to new and more efficient industry trends.
With the increasingly transparent distribution channels of components and the growth in the proportion of direct sales to the reduction of authorized agents, component distributors have launched a new round of integrated mergers and acquisitions recently. Shared bicycles, smart cars, and other emerging electronics industries will bring new opportunities for distributors and a new mode of exchange, further enhancing the efficiency of product circulation, making transaction prices more transparent, and increasing the degree of competition in the market.
Speaking of the development trend of the distribution market in 2018, Lei Xia expects that the merger and acquisition activity in the component distribution industry will be fiercer in 2018, and that the upstream channel adjustment and integration will likely lead to the reshuffle of the distribution market. First, price increases of some components caused by the periodic shortage will still exist, such as Memory and MLC. Second, in national policy and funding support, local Chinese IC factories will continue to develop rapidly. Finally, more business platform components will emerge in 2018, expected to reach a number of 500+ domestically.
ICZOOM, an online exchange platform for electronic components, has been operating for nearly 5 years. With the characteristics of intelligent matching and no difference in price, the company has gained a good reputation and loyal users with a massive source of goods and price advantages.
Lei Xia noted that the market share of electronic component e-commerce transactions in the entire distribution channel is less than 10%, currently. Component e-commerce has an impact on traditional distributors, but has not yet become a mainstream form of transaction yet. In his view, the professional service level of the traditional distributor is the key issue that the e-commerce platform needs to address. Lei Xia believes that the integration of those two transactions is valuable for the development and maturity of the industry. The traditional distributors and component suppliers will have both market competition and various forms of cooperation.
For the development of future areas, Lei Xia said that ICZOOM has positive expectations about Automotive Electronics, Communication and Network Systems, the Internet of Things, and other fields. Now ICZOOM is integrating the upstream and downstream resources in the component industry and the professional business team is developing the customer base, collecting and analyzing the end customer demands. He also said that the organization will concentrate on its own platform services and that there won’t be any M&A plan in the near future because raising capital in the U.S. will accelerate growth.Powered by growing capital market, ICZOOM will take a big step forward with continuous efforts in the future.
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