China Electronics First Street

China Electronics First Street

Huaqiang North atrophy is just a microcosm of this year, China's electronics market. According to the Ministry informed the September January 7 months or more the size of the electronic information industry, the first seven months of this year, the national scale electronic information enterprises total profit of 138.3 billion yuan, down 12.3%, an increase of 8.8% in the main business cost, the number of home loss an increase of 19.4%. In the first half, the whole industry profit margin is only 2.55%, down 1.22 percentage points, the whole industry profit margins of less than 3%, which means that most businesses can not afford a single failure of trading once occurred, may never stand up chance. Huaqiang North Price Index data operations director Huangyou Fu said. If the first few years of corporate transactions mistakes affect only corporate profits, but now related to the business of life and death in order to prevent trading mistakes, currently on the market, the more popular electronic commodity trading patterns, the buyer when purchasing a large quantity to be signed with the seller in advance to lock the price of the contract, if the future market price higher than this price, the execution of the contract; if less than this price, the buyer will often choose to default, breach of contract again to abandon the purchase on the spot market. However, it has production orders or stocking seller, and there is no way to deal with this breach of order, resulting in a large backlog of inventory, We do not have a set number of stocking, estimates rely on experience. Yang Hao said that this year the price of electronic components all the way down, keep the default appears, from the factory to the dealer's warehouse cargo volume as a mountain to capture the China Electronics First Street price rule, not an easy task. Huaqiang North electronic components breakdown by category over three million kinds, not only domestic sales of the largest, most homogeneous product range market, but also one of the most important global procurement center, price volatility is a clear illustration of the close association with the global market yes, in 2011 Japan's 3.11 after the earthquake, Toshiba, Sony and other Japanese electronic components supply disruptions, Huaqiang North rallied the various components so that the first phase after the earthquake in Japan, Huaqiang North electronic products price index closed at 102.4 points, rose 4.52 percent, the biggest gain since the emergence of three years. Again in October 2011, the world's second largest producer of hard drives in Thailand floods, Huaqiang North HDD market prices have been rising, some of the big distributors earn fried hard drive, and many buyers due to rising costs occur despite the huge loss of Huaqiang North business sensitive to price fluctuations, but only passively accept, price management as a major risk. According to the Futures Industry Study Group survey, the electronics industry market's top 100 companies, only 5% of sales. Thus, the electronics industry to participate in the main small and scattered, these SMEs is difficult to grasp the overall market trend.