Where will local distributors go? Taking SanLu and Lehman as examples

A friend said, my article involved in internal management more, external market less. Ok, let's talk about external market.

External market is awfully miserable. I haven't had good sleep at recent nights because going to office in daytime and watching USA financial news at night. This reminds me of the sleepless nights in 911 Event. A friend who works with a UK investment bank said USA financial crisis is much more tragic than 911. It doesn't come singly but in pairs when SanLu milk scandal broke out in China. SanLu's scandal exposed Chinese enterprises' credit crisis to public opinion for the first time. Presently, extremely pessimistic stock market is swinging like a drunken man after injected with cardiac; real estate market is still a salted fish after fried 'volubly'.

In contrast, although declining, electric component industry is safe relevantly because it is far away from virtual economy. Some HK shipping agency companies under control during Olympic Games may take breath now. Yesterday, Mr. Shounong Wu, new boss of ESM-China, provided up-to-date market information in "Electronic Industry Innovation" forum in which manufacturers, buyers, distributors, OEMs and IDH etc discussed and exchanged the information. However, it may be viewed as a "warming clothing" in this "winter".

Where will local distributors go? Does 'poisonous milk' exist in parts/components distribution field? If any, clients turn to foreign companies once disclosed? In my opinion, SanLu Milk scandal is exactly the same as Lehman Brother. Both responsibility chains are too long for management to control them; moreover investors were greedy overly. Therefore, local distributors should aim at internal management, instead of market expansion.

In fact, market is inherent. You can make money wherever there are people. At the beginning of 90's when I entered into this industry, everybody focused on computer industry. Afterward, my boss, Will Piersol, encouraged us to try communication industry. I started my own business in 1996. I decided not to do computer components distribution then, instead of communication, medicine and instrument industries. Nowadays, components exist everywhere, including consumable products, digital products, automobile electrons, aviation and spaceflight, biochip and so on. Almost all products relative to human livings directly and indirectly need components. Literally, component market is just like a big cake. It has been hanged around our necks so that you may bite it as long as you open your mouth. The problem is: are your teeth sharp? Is your mouth big enough? Do you swallow quickly enough? How do you prevent choke? Is your digestive system strong? Will you vomit what you eat? Is you costive? Does the market cake you eat strengthen your body, activate your limbs and optimize your brain?

I often told newcomers in admission training that we entered into a good field. Component distribution is a sun rising industry. Particularly after China joined into WTO, globalization laid an unblocked royal road for distributors. Although financial crisis and credit crisis change business ecological environment and game rules, component market will be flourishing forever, so we never worry about market potential. Component distributors, which simply mean those who catch white wolves by using empty hands, are 2-tier, 3-tier and 4-tier dealers. Nevertheless, the era when you can make money via a few clients or suppliers or orders is coming to the end. Today, information is lavish and market is unpredictable. How does supply chain system respond quickly? How to realize integration of human, financial and material resources? How to implement human-first policy? How to give attention to clients', staffs', shareholders' and social interests? Local distributors have to learn these homework everyday.

My father is getting old. He always said: "health is 1, the rest is 0." I am ashamed of my lazy because I couldn't have regular physical exercises to which my father have stuck. However, I applied this principle to my company and distribution, i.e. "management is 1, the rest is 0." If my clients or suppliers complain about fewer opportunities to have dinners with me, I have to say sorry for them. I often stay in the kitchen to create new menus and techniques to serve and satisfy clients. However, I definitely leave my kitchen to welcome clients if they complain, of course, I wear pinafore, ha ha.

Afterthought: Financial & Economic Channel in Shenzhen Radio reported that some USA thinkers criticized USA Times' thought, i.e. "every resident has his/her own house" was viewed as a happiness index granted to Americans. This was a wrong ideology, thus it led to subloan crisis, as a result, financial crisis. In fact, a government shouldn't guarantee people's happiness, instead of their rights to strive for happiness. Be profound! In other words, money is a good thing, and governments and managers shouldn't ensure that everyone or owner makes money, but guarantee his/her right to make money. I would like share this with you.


Posted 2009-1-22 14:36 by Lilian
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