electronica 2024 Spotlights Cytech Systems' Global Aspiration: Nurturing Local Strengths, Expanding Worldwide, Bridging to the Future
electronica 2024, widely regarded as the world's largest and most influential event of its kind, was held at the Trade Fair Center Messe München from November 12 to 15, 2024. In an era where technology is evolving at an astounding pace, electronic components, as the cornerstone of information technology, are spearheading a new wave of transformation in the global semiconductor industry. After a two-year hiatus and amidst significant global shifts in technology and economy, electronica 2024, spanning an exhibition area of nearly 17,000 square meters, drew over 3,000 exhibitors from more than 50 countries and regions, marking it the largest edition in history.
In the wake of a "going global" trend in China's hard technology sector over the past year, electronica 2024 has become a must-attend event for Chinese semiconductor companies looking to expand overseas. Nearly 1,000 Chinese enterprises, including Cytech Systems, participated in the event. As a pioneer in the electronic components distribution industry, Cytech Systems has consistently pursued the goal of becoming an internationally recognized distributor, making the expansion of its international business a strategic priority.
Fig. 1 Cytech Systems debuts at electronica 2024 at Booth 150 in Hall B4
Cytech Systems emphasizes these major demands at its debut overseas exhibition
At electronica 2024, Cytech Systems, in its debut overseas exhibition, showcased its core business areas and major product lines at Booth 150 in Hall B4 of the Trade Fair Center Messe München, with an emphasis on the domestic brands it represents.
In recent years, with substantial investment and technological advancements, China's high-end electronic component industry has seen swift growth and initial success, leading to a shift in attitude among international OEMs toward China brand IC, with their acceptance growing steadily. Despite this, Chinese manufacturers still lag behind international frontrunners in terms of brand power, product quality, and service capabilities, underscoring the urgency of their promotional needs, particularly in overseas markets. Cytech Systems, after experiencing the ups and downs of the industry in recent years, has been growing rapidly, establishing a firm foothold in China. The company's current focus is on expanding into overseas markets, connecting with a broader spectrum of international customers, understanding global market demands, enhancing the reputation of the brands they represent, and securing international customers and partnerships. This strategic imperative is also the driving force behind their participation in electronica 2024.
For this reason, Cytech Systems showcased a range of high-performance electronic components used in hearing aids and power management chips, among other applications. Through its subsidiary, CHCHIP, the company has significantly expanded its agency business for domestic chip manufacturers. They have accumulated an extensive resource portfolio from outstanding domestic manufacturers such as Lorentz, AIPUPOWER, MOT, Neoway, PHY PLUS, FMD, WCH, Born, HT semi, CXW, HPMicro, and MetaX.
Fig. 2 Cytech Systems showcases a diverse range of domestic products it represents at electronica 2024
At a grand industry event like electronica 2024, over 3,000 exhibitors and tens of thousands of visitors from around the world convened, including top-tier international decision-makers. Together, they discussed and witnessed the latest advancements and future trends of the electronics industry, as well as global challenges and upcoming transformation issues. This event serves as an exceptional platform for demonstrating capabilities, expanding professional networks, broadening perspectives, and seeking collaborative opportunities.
The head of Cytech Systems said, "Participating in international exhibitions allows us to directly engage with overseas customers, truly understanding their needs and preferences through face-to-face communication, which is essential for laying the groundwork for our international business expansion. Moreover, forging partnerships is a strategic focus for our upward growth. We aim to leverage exchanges and collaborations with international companies to share resources and further enhance our strength."
Fig. 3 Cytech Systems communicates face-to-face with overseas customers and partners at electronica 2024
In its pursuit of overseas expansion, Cytech Systems is vigorously working on increasing its brand recognition. This includes rapidly expanding its agency resource portfolio with top international manufacturers, such as the recent partnership with Torex, a leading Japanese power management IC manufacturer. Displaying its capabilities on the international stage is also crucial for enhancing its global market recognition.
Addressing challenges and making preparations for global expansion
First and foremost, enhancing internal strengths is essential. Since its founding in 2010, Cytech Systems has adhered to a quality-centric service philosophy, which has propelled the company to achieve numerous certifications and recognitions. These include the dual certifications of AS9120B and ISO 9001, the ESD S20.20 certification, and the designation as an A-grade supplier by major OEM and EMS companies. Additionally, Cytech Systems has been recognized by ranking in the top 12 and top 33 on Supply Chain Connect's "2024 Top 50 Asia Pacific Distributors List" and "2024 Top 50 Global Electronics Distributors List."
With quality as the cornerstone of service, Cytech Systems is focusing on broadening its service offerings in 2024 by providing a comprehensive one-stop service chain that includes more professional solutions, technical support, and after-sales service. It is also strengthening its digital management practices by leveraging big data and AI to enhance the transparency and efficiency of its supply chain. For major customers with whom they have established stable partnerships, Cytech Systems has implemented various initiatives to offer value-added services, such as inventory systems, flexible payment terms, discount rebate programs, and incremental business agreements.
Secondly, it is crucial to have a correct understanding of the competitive edge and challenges for domestic distributors in the global market. The head of Cytech Systems noted that while domestic distributors have not yet established a strong international brand presence, they benefit from lower production costs due to China’s mature industrial chain, allowing them to offer more competitively priced products. However, this advantage comes with challenges, as low brand recognition remains a widespread issue for domestic distributors, leading to difficulties in market entry and the need to understand and adhere to the rules and standards of various international markets.
The head of Cytech Systems emphasized the importance of talent in expanding the company's global reach, saying, "Cytech Systems already has a pool of international talents, but we will need to attract more to expand our overseas customer base."
Cytech Systems has expanded its global footprint by establishing branches in strategic locations such as Hong Kong, Shenzhen, Zhuhai, Wuhan, Changsha, Ningbo, Singapore, Shanghai, Taiwan, and Malaysia, as well as opening offices in major Asian economies like Japan and South Korea to better serve local and regional markets. Additionally, the company has established cooperative institutions in countries including the UK and France, which serve as "tentacles" for European operations, catering to the market's needs.
Cytech Systems plans to expand its global presence with new branches in Vietnam, Thailand, the Philippines, Indonesia, and India. The company aims to strengthen its international operations through enhanced collaboration with local businesses and also plans to establish a presence in North America to better serve the market there.
Participating in electronica 2024 is a significant step in Cytech Systems' global expansion strategy. Amidst the intensifying competition in the semiconductor industry, there remain substantial opportunities in overseas markets. For instance, in 2023, China led the Asia-Pacific region, excluding Japan, and accounted for 54.5% of the global semiconductor consumption market, indicating that there is a significant market share outside of Asia. In the future, the company anticipates heightened competition within the electronic components distribution sector and is capitalizing on international exhibitions like electronica 2024 to enhance communication with overseas customers and expand its international partner network. Cytech Systems is well positioned to explore new market segments and broaden its business scope through the sharing of market and supply chain resources.
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