ICZOOM Focuses on serving SMEs and to be a bridge
From December 19th to 21st, the 2019 ELEXCON, hosted by UBM Creative Exhibition (Shenzhen) Co., Ltd. was held in Shenzhen. The theme of this exhibition is “China Internet of Things, Smart Future”. There are 7 display areas of the packaging and testing / SiP / micro assembly exhibition area, the passive device exhibition area, the connector / switch exhibition area, the component distributor exhibition area, the embedded system / MCU / storage, the smart application / sensor world / 5G (including IoT) exhibition area, and the intelligent driving and intelligent networking area. From components, embedded technology to system solutions it fully display the smart technology and new energy in the areas of 5G, artificial intelligence and IoT, automotive new technologies and new energy. .
ICZOOM, as a component trading platform and integrated supply chain service platform, focuses on providing matching component trading services and tailored supply chain services for small and micro enterprises. At this exhibition, ICZOOM (Hall 1T08) exhibited both platforms . HC360 interviewed Mr. Xia Lei, the CEO of ICZOOM at the ICZOOM booth, and had a deep understanding of the current development of ICZOOM.
Mr. Xia Lei, CEO of ICZOOM
The size of the global electronic system market is more than $ 1 trillion, and China accounts for about $ 600 billion. According to the information disclosed by "International Electronic Business Information", "At present, there are about 3 million electronics manufacturers in China , but only 3,000 large blue-chip manufacturers can obtain the direct services from original brand manufacturers or agents. The remaining long-tail customers rely on multi-tier channels such as the small distributors, traders and component B2B platforms to get the components they need. "
China imports most of its components from Hong Kong. If a long- tail customer builds its own supply chain in Hong Kong, it will cost about three to four million yuan a year, which is a large expenditure for them. However, small and micro enterprises also need to obtain good services and need to provide their customers with the same high-quality services. Under such trading status, ICZOOM came into being.
Since its establishment in 2012, ICZOOM has established a B2B model with clear goals . It continues to improve the service for the small, medium and micro enterprises and increase the number of customers, continuously expands its coverage. ICZOOM as an intermediate service provider to service upstream and downstream enterprises. Due to years of industry experience accumulation, ICZOOM has improved its supply chain system, expanded rich channels, and built a mature trading platform. . Dedicated to its advanced business model, excellent service experience, and powerful technical skills, ICZOOM is becoming recognized and acclaimed in the electronic component industry in China.
ICZOOM's profit model follows the principle of providing transactions plus supply chain services for enterprises. Users can use ICZOOM’s trading platform and software for free, which greatly reduces the cost of small and micro enterprises. This also confirms the concept of ICZOOM focusing on providing services of small, medium and micro enterprises. Meanwhile, we are able to continuously attract new SEM customers while increasing the loyalty of existing participants by enhancing their transaction experiences.
At present, there are about 3 million micro small and medium-sized companies in China. The annual transaction volume is about a trillion yuan, which is a huge potential market. A large percentage of micro, small and medium-sized enterprises electronics companies concentrate in Huaqiangbei, so ICZOOM takes the advantage of it to develop the market. Since ICZOOM has achieved profitability and the business model has been verified, Mr. Xia Lei, the CEO of ICZOOM, stated that it will be listed in the United States in 2020.
Our software System is independently developed by ICZOOM strong technical team and it has successfully accumulated 22 intellectual property rights. We also recognized by Customs administrator of China as an Authorized Economic Operator. Meanwhile, we won a number of honors and awards. Mr. Xia Lei emphasized: "By the end of 2019, we had over 20,000 registered users, more than 10 million SKU"
ICZOOM's short-term goal is to achieve a revenue of 10 billion yuan. Unlike B2C, there are many subdivided areas in the B2B industry. ICZOOM's purpose is to make its own value in the subdivided areas, as well as competing with itself and the traditional service models to get a rapid growth.
Mr. Xia Lei also said that ICZOOM will continue to deepen its brand advantages from several aspects: First, ICZOOM will continue to optimize the integrated service by cooperating with the existing trading platform module and supply chain module to gradually open the customer relationship management module and financial module. And those four major modules will be permanently open to customers for free, helping the micro small and medium-sized enterprises in software investment to further save costs. The second is to build a brand image by actively organizing a variety of offline activities, and using the power of the media . The third is to plan a US IPO. ICZOOM is an overseas structure, so it is very optimistic about getting the benefits from the US capital market.
The number of small and micro enterprises in the domestic electronics market is huge. ICZOOM focuses on transaction supply chains in subdivided fields, and is committed to achieve "innovative integration of core e-commerce and supply chain." In the future, ICZOOM will continue to export its capabilities in the vertical field of serving micro small, medium enterprises and create the most intimate and convenient one-stop service of electronic components for small, medium and micro customers.
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