China Electronics Distributor Alliance is established

China Electronics Distributor Alliance (CEDA) has established on March 4th in Shenzhen, Guangdong province, China

The funding members include global top distributors and top Chinese local distributors, as well as some component suppliers. As China has been the key part in world electronics supply chain, and production-service industry also has been focus of in China 12th Five-Year Plan, electronics component distributors have absolute roles in electronics industry chain.

The establishment of CEDA has far-reaching significance in promoting franchised distributors’ value-added services, strengthening cooperation between distributors and suppliers, encouraging technical and service innovations and gaining supports on government incentive policies. Supported by government bodies and related industry associations and major distributors on China ground, China Electronic Appliance Corporation (CEAC), CNT Networks and China Outlook Consulting(COC) have jointly organized the CEDA opening luncheon that firmed mission and tasks of alliance.

‘Congratulations to CEDA. It’s meaningful industry gathering today. We hope to see more service innovation in distribution area through CEDA as this is a very important sector in the electronics supply chain.’ said Shijing Diao, Deputy Director-General at Department of Information Technology Industry of China’s Ministry of Industry and Information Technology(MIIT).

Wenhai Chen, Vice President of CEAC said, ‘The alliance will bridge electronics distribution industry and government bodies so that we can leverage more on building industry rules and acquiring supporting policies in future.’ Although electronics distributors have been movers of innovation in China, there are no simulation policies for distribution industry. In future, CEDA will offer focused services to address the demand of both international and local distributors.

‘The significance of CEDA enhances closer cooperation between component distributor and their suppliers, which will improve distributors’ contribution on technical and service innovation in new market environment.’ Michael Liu, CEO at CNT Networks said. Because China electronics manufacturing industry are widely spread and emerging markets are wide open, distributors have great market space.

The changes make the role of electronics component distributors to be MUST-HAVE and increasingly important. However, in China, there was not industrial organization for distribution sector before. CEDA takes the place and will be the contact window with global distribution industry. The establishment of CEDA was backed by International Distribution of Electronics Association (IDEA) and its worldwide members such as ECSN and ECIA and other distribution associations which will enable resources to drive development of CEDA.

‘The alliance has a goal to publish China distribution statistics cooperated with mainstream distributors and 3rd-party research firms to analyze the data and announce industry report. The task is vital to distributor for their operation optimization and supply chain forecast.’ Amy Wang, Vice President of COC and CNT Networks addressed. The initiative of setting up CEDA is to serve the community and helping members explore new market demand and establish strategic partnership through using all international resources and government support. CEDA will offer professional services for distributors in business transformation, business development, IPO and financing needs.

‘We have paid close attention to Chinese distributor organization and are happy to support its development through sharing IDEA’s resources. As China has been the needful part of global distribution value chain, we expect cooperation with CEDA in market research.’ Gary Kibblewhite, Chairman of IDEA has promised since his visit to China three years ago. Adam Fletcher, Chairman from ECSN/IDEA and Robin Gary, President from ECIA also help CEDA by sending the message to their members about the establishment of CEDA and invite them to join the first CEDA meeting.

CEDA hosted executives of founding members as well as government officials and related industry associations in Shenzhen. Thanks for founding members among Arrow, Avnet, WPG, Future Electronics, Digi-Key, Mouser, element 14, RS Components, Richardson Electronics, Comtech, SZCEAC, Techtronics, Asiacom, Honestar, Shanghai Linpo, Morusun, Letdo Electronics, Jiangsu Sunlord, CE-Power, Zetron, Alignment and Interine.

The alliance was also supported by electronics component suppliers, including FCI, Taiyo Yuden, Shenzhen Sunlord, Micon and SSMEC. ‘This is the party of international distributors who take roots in Chinese market. It will influence Chinese electronics distribution industry and related supply chain deeply.’ Wenhai Chen said.

The CEDA organizers have rich resources in electronics industry community including China Electronics Fairs, the largest professional electronics tradeshow in China, www.cntronics.com, www.52solutions.com, database Internet marketing and market research capacities. It will enable focused services to CEDA members.