electronica China 2015: Regional Opportunities and Challenges for Distributors

electronica China 2015: Regional Opportunities and Challenges for Distributors

For the 14th time, electroncia China has brought thousands of visitors to Shanghai. Themed “Welcome to Planet e”, electronia China 2015 emphasized on innovative technologies and creative solutions in the electronic industry. With over 1000 exhibitors from 28 countries electronica China attracted more than 55,000 visitors during the 3 day event.

Which products are worth noting? What are the opportunities and challenges for distributors? Which industry segment is going to impact the electronic component supply chain in 2015 in Asia? We invited Mr. Kamran Malek, Senior Vice President at Advanced MP Technology (AMPT), who attended the show, to share his thoughts and outlook on electronics for the APAC region.

Question: What products impressed you the most at electronica China 2015?

Mr. Malek: Usually, electronica focuses on the components, not the end products. But this year in Shanghai there were some end products designed and manufactured by APAC companies on display as well: renewable energy devices, hybrid and electronic automobiles and robots. It was interesting and exciting to see how innovative technology integrates with electronic components to create the end products.

Question: Which industry segments do you think will have the largest impact on the electronic component market in the APAC region in the next 5 years, and why?

Mr. Malek: The APAC region used to be known for manufacturing of consumer electronics, mostly the simple type of everyday devices. The way I see the APAC region in the next 5 years is that they are moving towards a more sophisticated product segment to comply with the evolution in local societies. This trend is especially true for China, as they have surpassed Japan and Taiwan in manufacturing low to middle-level products. Customers here are now having a bigger and more sophisticated appetite for high-end products, not only in electronics but in other industries as well. Renewable energy sectors, high-end customer electronics, automotive and industrial products will be the key industry segments in the APAC region.

Questions: Based on your experience at electronica China 2015, what are the opportunities for independent distributors in the APAC region?

Mr. Malek: The rapid changes in technology dynamics are going to cause a notable imbalance between demand and supply in Asia. This means great opportunities for distributors. The most important thing for distributors to do is stay tuned, watch the evolution and be prepared to act to those changes. Unlike other regions, the changes and opportunities in Asia happen very quickly, due to the speed of product introduction and production. Independent distributors need to react quickly to grab those opportunities.

With its already in-place resources, AMPT is definitely ready and resourceful to undertake those opportunities and assist the manufacturers in the APAC region.

Question: What differences, if any, did you notice between electronica in Shanghai 2015 and electronica in Munich 2014?

Mr. Malek: The electronica in Munich is larger and focused on international business, whereas the one in Shanghai is more about local business in the APAC region. The show in Shanghai is definitely smaller than the one in Munich, but the set up and exhibition layout reminds me a lot of Munich.

Question: What are your takeaways from electronica China 2015?

Mr. Malek: I have been to electronica China several times; the show is definitely getting larger and busier. It is a tradeshow definitely worth visiting and spending some time at. It is also refreshing to see how the electronic industry is presented in a professional way to the APAC region audience.