With experience in the Electronics industry spanning more that a quarter of a century in government and the private sector and his current standing as leader of one of the largest electronics distribution networks in China, it is no wonder that the KEA invited Mr. Cheng Yi-Mu, Chairman of Shenzhen Huaqiang Market Price Index Co., Ltd. and HQEW.com & PartInChina.com to be a keynote speaker at KES 2010. He is also Vice Chairman of the Shenzhen Electronic Chamber of Commerce. It's also not surprising that the Korea IT Times was eager to hear his views on a broad range of topics, not the least of which were the KES 2010 event, the relationship between his businesses and the Korean market and the growing bond between Korea and China in the era of IT convergence and Smart technology.
We knew that Hqew.com was founded in 2002 and Mr. Cheng assumed the Chairmanship in 2008, and then oversaw the launch of PartInChina.com in 2010. We wanted to know a little more about the company. In response he provided some statistics that nothing short of staggering. He said that, as of Q3 2010 the companies had registered 100, 306,719 sale and supply information in the parts sector, business transactions had broken 2.9 billion USD, daily visits to the HQEW.com website were in the neighborhood of 600,000 with a registered membership of 500,000 and they list roughly 6 million of parts for sale.
Chairman Cheng went on to say, "Based on Asia’s biggest parts real market (Huaqiang electronic world), HQEW.com is the leading e-marketplace, dedicated exclusively to brokers, distributors, and manufacturers in the parts industry in China. As the third party platform with an absolute unbiased view, PartInChina.com is exclusively positioned to provide a large number of in-stock and validated parts with a competitive price for international buyers through its 1200+ qualified supply network around the world."
Mr. Cheng pointed out that "with a dedicated staff of 220 plus at the headquarters in Shenzhen Huaqiangbei, the number 1 electronic street in China, and branches in Beijing, Shanghai, Shantou and Hong Kong we are able to provide unparalleled service."
We contacted Mr. Cheng to request an interview when we learned that he was going to be a keynote speaker at KES. We were curious as to any other plans he had for his visit to Korea. Would his company have an exhibit at the show He said that his company has been an exhibitor at KES for the past several years. He added "This year is very special, because as the strategic partnership under the CJK (China, Japan, and Korea) model, we are honored to share an extraordinary joint booth with KEA and chip1stop. As usual, we also will bring some of our golden suppliers to join the show with us. Our joint exhibition has proven to be helpful for SMEs to expand their sales network, create synergies for cost-saving and it is also environmentally friendly by reducing energy consumption." Mr. Cheng said that the partnership doesn't end there. "We believe we might copy this model to help the Korean SMEs to join the Chinese exhibitions in the future for the economic connecting between China and Korea. We welcome visitors to our booth to see for themselves how well the joint effort is working."
We asked if Mr. Cheng had any other plans for KES besides his keynote speech and the joint exhibit. He responded by saying "KES is well known as a professional electronic exhibition in Asia and is the preferred exhibition for Chinese companies. In the recent past, thanks to the positive international trading policy adopted by the Korean government, Korea becomes the key oversea market to develop for Chinese export companies. We also cooperate with KEA and arrange for opportunities to talk face to face. We are interested in establishing a fair and balanced relationship between Korean and Chinese electronic companies." He also said "In addition, as a keynote speaker on KES 2010, my main job is to introduce the quality products and services of Korean SMEs to the Chinese market through a reliable and trusted channel, like PartInChina.com. More specific details will be discussed on the keynote at KES 2010." We told him that we and our readers are looking forward to hearing his message in the speech.
When an industry heavyweight like Mr. Cheng expresses this level of commitment to a business partnership with SMEs in Korea, we were compelled to ask what his view was on the most important thing about the Korean markets are to his business. He was quick to reply and he began by saying, “E-business has gradually becomes an acceptable way of doing business in China today. It compliments the emerging middle class, completed infrastructures, financial development, government policy and the awareness of using Internet from the cities to the country side around China. Therefore, it is the best chance to adopt the e-business way to do business with Chinese in a cost-effective and eco friendly way. HQEW.com & Partinchina.com is positioned to be the e-hub to connect Korean and China’s parts and electronic product market."
There were two facets of his vision for a mutually beneficial partnership between his companies and the Korean market, which he described in detail.
Korean SMEs to enter into Chinese Market
Mr. Cheng’s described his view “Through the model of Korean product service plus Chinese existing sales channels, saves money and time, which means more money, when the Korean companies sell their products through the existing sales network from a Chinese company. As the one of biggest parts, IT, and electronic product marketplace, Shenzhen owns a 1/3 scalable and sizeable electronic market in China. With 500,000 daily buyers flows and 10 billion (RMB) sales revenue for electronic product, Huaqiangbei Business Street became the number one electronic street in China. It is also one of the most concentrated marketplaces for global electronic products trading and transactions in the world. Based on that information, HQEW.com & partinchina.com, the whole subsidiary of the Huaqiang holding group, enjoys natural competitive advantages and is able to provide the effective e-business service for bridging the Korean company to Chinese market. For example, Partinchina.com offers the Korean parts maker and distributors to join its qualified supply network to help them to expand its market into China, or even around the world. For the finished electronic goods, HQbuy.com will be able to provide the access point for Korean SMEs.”
Sufficiently leverage every source between China and Korea
Mr. Cheng laid out the other half of his model when he continued, “Through the complementary advantages model, to integrate the Chinese product with its core advantage of low price and quick service to the Korean company with its core advantage of high tech products and transit trading, by teamwork with each other to build a solid manufacturing chain and supply chain to gain the win-win situation for both of Korean and Chinese company. We understand deeply about the Chinese market and suppliers, we can be the reliable channel to provide the trusted parts and products. For example, Partinchina.com is exclusively positioned to provide the large number of in-stock and validate parts with competitive price for the Korean buyers through its 1200+ qualified supply network around the world.”
