Slkor Kinghelm Song Shiqiang: Why Are There So Many Billionaires in Shenzhen Huaqiangbei? (Part 5)

Huaqiangbei is basically spot trading, with "speed" as its main selling point! In the booths of the Huaqiangbei electronics market, the upper glass display racks show samples, while the storage racks below and against the wall behind are filled with goods. The value of electronic components is very high; some materials are worth tens of thousands of yuan per package, and high-end products from ADI, Xilinx, and TI are even more expensive, so some booths even have safes. Last year, automotive ICs were in short supply and prices rose, and one package of Freescale materials sold for more than 30 million yuan. Our Slkor (slkoric/slkomicro) Semiconductor's two specialty stores in Huaqiangbei each have an area of less than 3 square meters but hold 600,000 yuan worth of goods. The tens of thousands of small companies in Huaqiangbei basically all have their own small warehouses of considerable value. Low-value, bulky items such as capacitors, resistors, diodes, transistors, connectors, plug-in components, and contact switches are basically kept in turnover warehouses in places around Huaqiangbei such as Huaxin Village, Huaqiang South, Gangxia, and Futian Village, while large warehouses are set up in Bantian, Longhua, and Guanlan, and at most as far as Tangxia and Fenggang in Dongguan, to ensure the fastest

speed in taking orders, delivering goods, and collecting money. A few years ago, Huaqiang Electronic Network saw this opportunity and also set up "Huaqiang Cloud Warehouse." This forward-warehouse model has also accelerated Huaqiangbei's services!

Futian District, where Shenzhen Huaqiangbei (shenzhen hauqiang north) is located, is China's southern gateway. It is relatively close to Singapore, Thailand, Malaysia, India, Indonesia,

the Philippines, and other countries, and is also adjacent to Hong Kong. The first stop for the sales departments and agents of major brand semiconductor manufacturers entering China is Shenzhen. Old electronic component markets such as Guiyu and Chendian in eastern Guangdong have a high degree of integration with Huaqiangbei and have direct express buses. These buses often stop at the east gate of the New Asia Electronics Market, and the area around the buses is crowded with people pushing carts to pick up goods.

Huaqiangbei is also an exhibition that never ends. The "front shop, back factory" model allows products such as terminal connectors and small switches from Wenzhou and Yueqing in Zhejiang, hardware parts and small accessories from Yuhuan in Taizhou, and antenna connectors, wires, and cables from Humen and Chang'an in Dongguan to all find sales stores in Huaqiangbei! For example, Kinghelm Electronics (www.kinghelm.net) has its Beidou/GPS antenna debugging and R&D laboratory in Tangxia, Dongguan, and its antenna production base in Liuzhou, Guangxi, and has put up huge advertisements in Huaqiangbei. Slkor (slkoric, www.slkoric.com) Semiconductor's R&D teams are in Korea, Beijing, Wuxi, and other places, its packaging and testing are in Taizhou and Dongguan, and it also has two sales stores in Huaqiangbei.

Agents are scattered in office buildings around Huaqiangbei, or concentrated in Chegongmiao in Futian and the Nanshan Science and Technology Park. They promote Huaqiangbei's transactions more or less, openly or secretly, publicly or privately. Many agents' PMs hold shares in Huaqiangbei companies or set up their own companies, and they are the ones with more resources among Huaqiangbei's speculative traders. Office or residential buildings around Huaqiangbei such as the International Science and Technology Building, World Trade Plaza, Electronic Science and Technology Building, Futian Building, Beifang Building, Hualian Building, Jiahui Xincheng, Leizhen Building, Guangye Building, Nanguang Jiejia, and Huaqiang Garden, as well as office buildings in Chegongmiao such as Anhui Building, Haisong Building, and Cangsong Building, and the major office buildings in the southern district of the Science and Technology Park, are all home to such companies. Huaqiangbei and Beijing's Zhongguancun are closely connected; we once even organized Huaqiangbei entrepreneurs to go to Beijing and exchange with peers in Zhongfa Building and Hailong Building! Huaqiang

bei also has an active group of people who collect inventory, dead stock, waste materials, and old materials. They generally have close ties with the warehouse and logistics departments of OEM/ODM factories, agents, and traders around the world. Combined with Huaqiangbei's strong sales end, Huaqiangbei has always maintained cross-cutting and all-round information exchange with them.

Due to historical and geographical reasons, the mainstream Chaoshan and Jiangsu-Zhejiang bosses in Huaqiangbei have many overseas connections. Maintaining and strengthening these overseas relationships is an opportunity to make money. The most important feature of the electronic component industry chain is its global layout, so overseas wafer fabs, packaging and testing plants, and OEM/ODM processing plants are channels for purchasing goods. Through the channels of fellow townspeople in Penang, Malaysia; Singapore; Bangkok, Thailand; Rio de Janeiro, Brazil; Barcelona, Spain; Milan, Italy; and Mumbai, India, Huaqiangbei's electronic products can be quickly sold all over the world!

In the electronic information industry that Huaqiangbei people are engaged in, sales through internet platforms are indispensable. Huaqiangbei component foreign trade companies basically have accounts on eBay, NetComponents, Alibaba International Station, HKinventory, Findchips, Efind, and others, and some companies have opened many accounts. Kinghelm and Slkor's overseas market agent, Miraida Company, has begun operating the foreign trade website www.instockelec.com, and both traffic and transaction volume are quite good. It has set up special sections for Kinghelm and Slkor, echoing the overseas official websites of Kinghelm (www.kinghelm.net) and Slkor (www.slkoric.com), and plays a significant role in brand promotion and product sales.

Shenzhen LCSC Mall, Huaqiang Electronic Network, and others all have overseas versions. In recent years, as the industrial chain has moved outward, Huaqiangbei bosses, with their keen sense of smell, have set up operations in Southeast Asia and other places. This is also a reflection of Huaqiangbei's product exports and model spillover! (To be continued)

Song Shiqiang: The Past, Present, and Future of Huaqiangbei (Part 2)

Suzhou Online, 1 day ago · Uncovering Suzhou's highlights, forging Suzhou's brilliance

As the total economic volume increased, Shenzhen's economic and consumption center gradually spilled over from Luohu District and moved westward, and in the 1990s the focus was on Futian District. After years of struggle and accumulation, migrant workers also produced a middle class with consumption power. The industrial base gradually accumulated and developed, leading to division of labor and cooperation and spontaneous markets. Huaqiangbei, located in Futian District, under the superposition and catalysis of these factors, formed the Huaqiangbei commercial circle with the electronics street as the industry leader, creating the Huaqiangbei economic miracle.

The current state of Shenzhen Huaqiangbei Pedestrian Street after renovation.

People's Daily republished Slkor Song Shiqiang's "The Past, Present, and Future of Shenzhen Huaqiangbei."

Mr. Song Shiqiang, General Manager of Kinghelm (www.kinghelm.net) Electronics and Slkor (slkoric/slkomicro) Semiconductor, is a member of the Electronic Information Expert Database of the China Association for Science and Technology,

a columnist and popular science writer, and an expert in Huaqiangbei commercial research. Song Shiqiang invests in, operates, and manages Shenzhen Slkor Semiconductor Co., Ltd. and Shenzhen Kinghelm Electronics Co., Ltd., building the Slkor "SLKOR" and Kinghelm "Kinghelm" brands. Both Slkor (slkoric/slkomicro) and Kinghelm are national-level high-tech enterprises and play a positive role in the domestic substitution of electronic components. Kinghelm's antennas and signal connectors and Slkor's diodes, transistors, Hall elements, and other products are domestic substitution choices for the vast number of electronic hardware engineers!

Mr. Song Shiqiang's series of articles on Huaqiangbei commercial research has been well received. The English version of his original article Slkor Song Shiqiang: The Past, Present, and Future of Shenzhen Huaqiangbei (Part 2), titled The Past, Present, Future of Shenzhen Huang Qiang Bei (Volume 2)---Slkor, Song Shiqiang, was republished by Dow Jones' MarketWatch column. The article takes the overall development of Shenzhen Huaqiangbei as its starting point and systematically discusses the start, growth, and maturity of Huaqiangbei after reform and opening up, with rigorous argumentation and thorough reasoning; it is a highly informative and in-depth good article. The article republished on Dow Jones MarketWatch is titled. The English version of A Refutation of Bloomberg's Article "China's Underground Chip Market Attracts Desperate Automakers"—"A Refutation of 'China's Underground Market of Chips Draws Desperate Automakers' by Bloomberg," by Song Shiqiang, and Song Shiqiang, Shenzhen Huaqiangbei: A Refutation of "China's Underground Market of Chips Draws Desperate Automakers" by Bloomberg—was also republished by overseas authoritative media such as the New York Times and the Houston Times! Slkor Song Shiqiang's The Past, Present, and Future of Shenzhen Huaqiangbei was also republished by People's Daily's "Quality News." The republication by People's Daily, Xinhua News Agency's client, and the Chinese edition of the British Mirror

is also an affirmation of Mr. Song Shiqiang's long-term constructive and pioneering research on Huaqiangbei's model and economic phenomena!