Distributors Address Counterfeiting, Difficult Economy
The electronic component distribution market has gone through many changes over the past decade. Currently, one of the biggest problems is the emergence of counterfeit components, largely stemming from China. Although the Asian marketplace has proliferated in flooding the market with more and less expensive components, domestic profit margins have decreased largely in part to counterfeit product. While obviously not all electronic parts from China are counterfeit, the breach has created a false price line for the majority of components at a global level.
Unbeknownst, manufacturers can web search and view virtually any product at unrealistic pricing. This translates back to the domestic market as having inflated price points compared to the Asian marketplace. Our government has created an anti-counterfeiting division to trace and ban this tide and customs has also helped stem the influx of compromised components.
In addition, distributors must take responsibility in maintaining in-house facilities and trained personnel to detect and stem counterfeit components. At I.C. Plus we have implemented a division to address this problem so that all orders shipping are 100 percent indefectible.
The challenge of being a distributor is mostly in perpetuating a balanced productivity level in an ever changing economic climate. With the downturn of the economy hitting us hard in 2008, it was important to reassess the work place and maintain a lean but effective environment, maintaining a strict overhead, ascertaining each employee’s skills and participation as key to the success of the company. It is also important to always nurture an honest, lasting accord between vendor and customer keeping in mind the long term relationship.
Creating that trusted connection is what keeps a successful distributor alive. I.C. Plus has actively managed throughout the downturn and is looking forward to the noticeable uptick in today’s marketplace. We are grateful to be a part of this exciting and dynamic industry and are looking forward to being a part of the myriad of trends it has to offer.
For more information, contact I.C. Plus, 4040 Spencer Street
Suites P&Q, Torrance, CA 90503; (310) 378-7715; http://icplus.net