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Research on Huaqiangbei

Release date:2022-07-14Author source:Song ShiqiangViews:341

            Huaqiangbei, located in Futian District, Shenzhen, Guangdong Province, is a name card to show the achievements of reform and opening up in Shenzhen Special Economic Zone, and Huaqiangbei with Beijing "Zhongguancun" is known as the major center of electronic information industry in southern and northern China respectively. Huaqiangbei Business District, with an area of 1.45 square kilometers, is the "First Electronics Street in China" awarded by China Electronics Chamber of Commerce, which is the focus of the wealth of the prosperous commercial area. There are more than 50 professional markets of all kinds, and Huaqiangbei Commercial Area is to serve the surrounding communities and Shenzhen citizens, with unique commercial characteristics and business charm. Huaqiangbei has a total of more than 60,000 enterprises (of which there are about 600 enterprises above designated size), more than 40,000 individual businesses, and nearly 300,000 employees. The annual turnover is about 200 billion yuan, and the cash turnover excluding tax can be comparable to the famous Yuehai sub-district. Huaqiangbei has created a lot of commercial miracles and "Huaqiangbei’s One-meter Counter" has made more than 50 billionaires. At that time, the management benefit of Wanjia Emporium was the highest in the industry in the world, and the supermarket area of 3,000 square meters realized daily turnover of 3 million yuan. In its heyday, Huaqiangbei had a customer flow of more than 500,000 a day.


The new look of Huaqiangbei after its transformation


                       Huaqiangbei is a shining pearl in the crown of Shenzhen Special Economic Zone in China. At that time, Shenzhen seized the opportunity of reform and opening up and developed from a seaside town into a top international metropolis. Huaqiangbei took advantage of the great situation, together with the spirit of Huaqiangbei, which is innovative, bold and good at fighting, and became a beautiful name card of Shenzhen's economic development. As the general manager of Slkor, I Song Shiqiang have been concerned about the study of Huaqiangbei for many years,now I interpret it for you from these aspects:


I. Timing and place

When mainland China opened its door to reform and opening-up, it just undertook the third international industrial transfer and made use of foreign capital and advanced technology and management. Shenzhen took the lead in developing by relying on Hong Kong, benefiting from policies and attracting labors from mainland China. As China has gradually become the world's factory, it has also become an industrial power with the whole industrial chain of electronic information industry. At the same time, the society entered the era of electrification and information technology, the main means of production of semiconductor consumption explode, which is the advantaged background of Hauqiangbeis development and prosperity!


Geographical space is also conducive to the development of Huaqiangbei, which is located in Futian District of Shenzhen and adjacent to Hong Kong. Shenzhen is also close to Singapore, Thailand, Malaysia, India, Indonesia, the Philippines as well as other Southeast Asian countries and regions, where the agencies and agents of the major semiconductor manufacturers enter Shenzhen, the first stop of Chinas market. Chendian, Guiyu and other towns in eastern Guangdong Province began to process foreign electronic waste in the 1980s, but the low-end ecological chain of the industry is not enough to support that. The refurbished electronic components can only be sold in Huaqiangbei, and several buses loaded with both people and goods go directly to Huaqiangbei every day. Some traders also set up a store or small counter in Huaqiangbei by the means of the shop in front of the factory, such as the plug-in units of Zhejiang Wenzhou Leqing, small hardware of Taizhou Yuhuan, as well as the connector wire and cable of Dongguan Humen.


There are family workshops and rural economy which developed earlier in the Pearl River Delta, most of them engaged in small household appliances and other industries, the demand for electronic components features the complex categories and small orders, Huaqiangbeis counter just can provide them with supporting electronic components, known as  the business of "completing the order list" in Huaqiangbei. All electronic components like diode, triode, MOS, inductance, and connector on the customers BOM form can be completed, providing one-stop service of whole category.

Electronic components are characterized by small volume, high value, high standard, accurate model, convenient transportation and storage, etc. Merchants in Huaqiangbei can serve customers in the Yangtze River Delta, China, Southeast Asia and even the whole world. After years of efforts, our "Kinghelm" (www.kinghelm.com.cn) brand KH series Beidou microwave RF antenna connector, and Slkor(www.slkormicro.com) brand SL series of MOS tube, TVS diode, Hall components and other products, have been imported into the BOM by many customers.


II. Huaqiangbeis spontaneous market order and free market

                  Now I want to talk about the elements of Huaqiangbeis people after analyzing the timing and place. The wild growth of Huaqiangbei verifies the formation and development theory of "self-organizing social system", which can be summarized as that in the absence of external instructions, the system automatically moves from low-level disorder to high-level order, forming certain structures or functions according to some certain rules. The interaction of no interference, open system, disorder and complexity becomes the market order, which is the element of the self-organizing social system.


              Shenzhen is a model of small government and big citizens, with the lowest proportion of civil servants in China. The government respects the market, take the lead in abiding by the law and play the role of night watchman and servant, so the benign development of Huaqiangbei is related to the minimal intervention of the government. At the beginning of the opening of shenzhen port, all the people who came to Shenzhen were outsiders. They had no capital, no occupation, no technology, no organization, no business model, and no monopoly formed by many local people. It was a completely open social system, You are the Shenzhen person once you come here. They all started from nothing and randomly gathered together with hometown, blood, industry, business cooperation and other endowments. Then, with the development of interest distribution, industry aggregation, industrial chain supporting, and market division of labor, they settled into efficient and orderly market-oriented individuals. The self-employed in Huaqiangbei seem to be fighting alone on their own, but through efficient information organization and benefit distribution, they gradually produce and strengthen the unique market order in Huaqiangbei through the selection of habits of various behaviors, to let everyone work closely and develop cooperatively. Hayek believed that the spontaneous emergence of market economic order is the latest progress of the spontaneous evolution of social economy, and its the most efficient economic structure system that has appeared in human society so far.Huaqiangbeis small counter is actually infinite power, and its an ant soldier which cannot be underestimated.


               According to the economist Hayek, the most important thing of economic problems is the discovery and utilization of scattered information. Huaqiangbei has more than 40,000 self-employed people which are about 300,000 employees,several million common models of electronic components, and there are more than 500,000 guests or visitors every day at the peak time, so there is indeed a huge amount of information.Mass people, things, information and other stuff make Huaqiangbei the best center of information exchange, and after the utilization of information, there will be more business opportunities to catalyze a variety of business types.There are no interference factors such as mechanical planning, command, monopoly and extortion, and everything is drived by the market-the invisible hand, its aiming to regard the deal as the center of the circle, the profit as the signal, the price as the tool, and wealth as the motivation, which formed the information feedback system in Huaqiangbei, coordination in the spontaneous order, and the free market with sustainable development and internal drive.


              The free Market theory was put forward by contemporary economists Lu Guoqiang and others, who studied the achievements of East Asian economies in recent years and drew the following conclusions: Their economic success is due to the minimal government intervention, such as little or no government control over prices, foreign trade and foreign exchange. What the government does is to provide a suitable environment for the production and operation of private enterprises, that is, to maximize the role of private economy and free market mechanism. This model is also the same for Huaqiangbei.



III. Better industrial base of Huaqiangbei 

              Huaqiangbei has accumulated a distinctive industrial base. Shenzhen started from the processing industry of Three-processing and One-compensation Trade, and began to transform into the pillar industry of watches, clothing, glasses, etc., which can still be found in remote areas.Cheng Yimu, secretary general of Shenzhen Electronic Chamber of Commerce, is a respected old Huaqiangbei person, he served as senior positions in the Saige and Huaqiang group, along the way he is a witness of Huaqiangbeis development and glory. Huaqiangbei was a part of Shangbu Industrial Zone in the early times, which was planned to build an industrial zone of "importation and exportation" focusing on electronic industry and processing of supplied materials. The central ministries and commissions were allocated by the state to invest and construct this large industrial space of "block segmentation", and more than 100 joint ventures have invested in this industrial zone.


Wu Bo, Cheng Yimu and Song Shiqiang (from left to right)


               Cheng Yimu said that Shangbu Industrial Zone is an industrial park with electronic industry as the main body, including light industry and textile industry.In the 1980s, Shangbu-Huaqiangbei Area was the industrial highland of Shenzhen, which concentrated the most intensive and high-end industrial resources in Shenzhen.Five of the six municipal state-owned industrial enterprise groups are headquartered in Shangbu Area, including Saige Group, Energy Group, SINOPEC, Textile Group and Light industry Group (Laiyinda Group).At the same time, the investment of central ministries and commissions concentrated in Shangbu Industrial Zone in Shenzhen, such as  the machinery building, automobile building by the ministry of machinery industry(the former first machinery department), the CGNPC tower by the ministry of nuclear industry (the former second machinery department), the Zhonghang building by the aviation industry (the former third machinery department), Zhongdian, Aihua, Sangda, Jinghua, and Zhenhua group by the ministry of electronic industry(the former fourth machinery department), North Building by the Ministry of Weapon Industry (the former fifth machinery department), Hualian Building by the Ministry of Textile Industry, Huaqiang and Huayue building of Guangdong Electronics Industry Bureau, etc.On this basis, Huaqiangbei gave birth to the earliest batch of technology innovation enterprises in Shenzhen in the 1990s.


                 The earliest Shenzhen Stock Exchange was also in Shangbu Area.It gathered nearly 100 security business departments in Huaqiangbei and was called Street of Shenzhen's Securities.On the second floor of Shenfang Building, there was the first big talent market which was unique in Shenzhen and initiated in China, which is now called offline job fair. Every day, hundreds of recruitment enterprises and thousands of job-seekers with gold dreams also brought popularity to Huaqiangbei. Gemdale Group, one of the "four golden flowers" in the real estate market,its office was in Shenfang Building at that time, and I also talked to GM Yin, the head of Gemdale, about our cooperation!



IV. Huaqiangbei spirit

                The rise of Huaqiangbei is inseparable from the spirit of innovation.The English word entrepreneur usually refers to those who start or organize enterprises,have the spirit of adventure and are not satisfied with the status quo. In Huaqiangbei, small business owners are very common.Kirzner believes that the essence of an entrepreneur is profiteering, and Huaqiangbei is in the same way.In traditional impression and media publicity, profiteering is speculation that get something for nothing.But in fact, the profiteering plays an important role in the orderly market operation, its the supplement and adjustment for bulk commodities, standardization and normalization of goods transaction , which can realize effective organization of factors and rational allocation of resources, improve the social efficiency and reduce social cost.I think that Huaqiangbeis small counter provide personalized service, whose basic principle is the  the process that the information collection, cleaning, processing, desensitization and selling of mass electronic components, and its also a unique commodity.


             Under the call of wealth, the increasing floating population in Shenzhen Huaqiangbei brought about the fierce competition, the immigrant groups were naturally daring and aggressive. The majority of Chaoshan owners in Huaqiangbei is known for its aggressiveness, and there is a proverb saying in Guangdong, A fierce dragon never dares not to cross the river,  these are blended in Huaqiangbei spirit!In Huaqiangbeis writer Xie Jiapeng's masterpiece Father's money of thirty thousand, we can have a glimpse of the undefeated spirit of Huaqiangbeis grassroots owners from the the protagonist who is a black sheep.


                Huaqiang Group engaged in data and information innovation many years ago. At that time, Cheng Yimu and Wu Bo were responsible for launching "Huaqiangbei Price Index" in Huaqiangbei, and they set up information collection centers in 380 stores in Huaqiangbei.In addition, Huaqiang Group also engaged in financial innovation, preparing to set up Shenzhen Electronic Commodity Exchange in Huaqiangbei, and Huaqiang Group submitted application materials to Shenzhen Financial Office, but finally they gave up it because Huaqiangbeis electronic information was too scattered and commodity trading volume of single product is too small!


                Shenzhen has an innovative and bold environment, which not only reflected in the development of Shekou, but also the hammer sound of land auction .The space for use of small shops and counters in Huaqiangbei Electronics market is divided and it has independent property rights, which is initiated first in Shenzhen and Huaqiangbei.Lowering the threshold, giving everyone the chance to be a boss, and activating the social basic unit, this is also an innovation! These small counters and small companies have developed into competitive and potential enterprises such as Dazu Laser, Jinzheng, Hongen Software, Shenzhou Computer, Jiangbolong, Meilong Electronics, SlkorMicro Semicon, Kinghelm Electronics, Kexin Semicon, etc., and Tencent and other large enterprises have also been born in Huaqiangbei.


                The advantage of Huaqiangbei lies in the sharing of ecological resources and the iterative innovation developed on this basis.The resource sharing of Huaqiangbei has formed scale effect and comprehensive cost depression, and improved the overall bargaining ability of Huaqiangbei.At the same time, the sharing of resources has also facilitated the extension of Huaqiangbei's production supply chain, promoted the specialization of various resources, and formed a more professional innovation ecosystem, which is the most valuable wealth of Huaqiangbei.



Slkor’s image shop in Huaqiangbei Electronics Market


                    Huaqiangbei also has other innovative models. For example, the minimum packaging of electronic components is usually 3,000 to 5,000, but the maintenance and proofing of new product usually only need a few dozens. Some Huaqiangbeis merchants cut the small items such as capacitance resistance diodes into 10 or 50 pieces to sell them as a set.Although the single sales volume is small, fortunately, Huaqiangbei has many customers and its gross margin is very good, therefore small innovation to provide solutions is also an important competitiveness of Huaqiangbei! Home appliance Hospital of Huaqiangbei Shunde Electric Appliance Co., LTD. (former name: Shunde Home Appliance) provides small maintenance parts for customers, solving big problems which may cost hundreds and thousands of RMB, which is also the value of innovation.Huaqiangbei Electronics Market is not only an important part of Shenzhens electronic industry environment, but also an important link of Shenzhens electronic information industry innovation system.



V. Huaqiangbei Electronics Street

                   Huaqiangbei is a distribution center and reservoir of electronic components, and its an also electronic trading center, these are the main functions of Huaqiangbei.


                   The stores and counters in Huaqiangbei Electronics Market are the extension and development of the mode of the shop in front of the factory. On the fourth floor of Huaqiangbei Building 100, most Wenzhou people are selling miniature connectors, small electrical switches and other products, and they often talk about business in local dialect.The owner's wife behind the one-meter counter in Huaqiangbei may be a family,a relative or a fellow townsman from a village, an industry even the overseas. The information contained is very large, so their business is also quite good.


                   Huaqiangbei can provide the coordinated-process service covering brand advertising, product display, information collection, physical experience, price comparison, business negotiation, money and goods delivery, and logistics.Besides, people can make the one-stop procurement of complete materials and find scarce things, such as the imported leftover stock of Chaoshan electronic components,the field effect tube of Slkor, Zhejiang Cixi connector and electronic switch, Wenzhou connector, Beidou antenna connector of Kinghelm,the stock materials of European and American large OEM companies, etc.Another important feature of Huaqiangbei is that it is a real and effective high-frequency trading market with high conversion rate of demand and supply, as well as signal stimulation caused by price fluctuation in the same frequency due to imbalance of supply and demand, which also brings vitality and imagination to Huaqiangbei.


                  The trading of electronic components requires accurate information such as the brand and model, then they can be matched. So Huaqiang Electronics Web, IC trading Web and other information exchange platforms are born under this situation, people can screen and pair the information above, and then make a deal. Huaqiangbeis business model is divided into completing the order list, delivery of goods, stock and sales.The agencies and agents of the original factories are scattered in Nanshan Science and Technology Park or office buildings around Huaqiangbei, there are also numerous links and entanglements with Huaqiangbei,and they are promoting the transactions of Huaqiangbei more or less.


                To turn the old electronic components into treasure is a major feature of Huaqiangbei, and its also the link between Huaqiangbei and Guiyu & Chendian, which is called the refurbishment.Tongbao Second-hand Goods Market, the earliest second-hand market of electronic products, was also born in Huaqiangbei, which should conform to the characteristics of Shenzhen's development. This model has developed into the circulation of old refrigerators and air conditioners, which is in full swing in Shenzhen's urban villages.



VI. Huaqiangbei Professional Market

                  In addition to the electronics street we are familiar with, there are many professional markets in Huaqiangbei, which bring a great variety of business forms.Such as electronic digital 3C market, mobile phone market, watch market, security market, electronic gift market, foreign trade clothing market, intelligent wear market and underground Shanzhai electronic products (Made in SZ) market, etc.The professional market of Huaqiangbei also has the supporting ability of industrial chain and the benign industrial ecology, which can cover China and radiate the world, and it has a comprehensive advantage that other business circles do not have.


                 Huaqiangbei has about more than 50 electronic professional markets, with communication mobile phones supporting the majority. In the south of Shennan Avenue in Huaqiangbei, there are Huaqiang Metro Shopping Mall Yitong Mobile Phone Accessories Market, Pangyuan Communication Accessories, Longsheng Communication Market, Pengjinshan Science and Technology Electronics Market, Tongtiandi Communication Market, Jinlong Communication Market, Shuanglong Communication Market, Tongshuangtong Communication Market, Tongtiandi Communication Market, and Xintiandi Communication Market. Between Shennan Avenue North and Huaqiangbei Road East, there are Saige Plaza, Baohua Building, Shenzhen International Electronics Town, Saige Communication Market, Industrial Product Sales Center, Guangbo Digital Wholesale Market, Saibo Digital Square, Yuanwang Digital Mall, Manhattan Digital Telecommunication (Shopping) Square, Wanshang Computer City, International Electronic Foreign Trade Wholesale Market, Zhongdian Digital Wanshang Supporting Center, Pacific Security Profession Market, Gaokede Communication Digital Plaza, Huitong Security Cyberport, Longsheng Mobile Phone Wholesale Center, Mingtong Digital City, and Sangda Electronic Communication Market. Between Shenzhen Avenue North and Huaqiang Road West, there are Huaqiang Electronic World, Jiahe Electronic Market, Metropolis Electronic City, New Asia Electronic Mall, Gaokede Electronic Market and Huaqiang Square.


                 A few years ago, Shanzhai mobile phones became popular in Huaqiangbei. The owner who started the business of mobile phones in Huaqiangbei explained to me that Shanzhai means Shenzhen. Because a large number of products bought and sold every day are actually Made in ShenZhen Huaqiangbei at that time, its Made in ShenZhen indeed. The traders mark SZ instead of Made in Shenzhen on the goods in order to avoid the trouble caused by the intellectual property rights and other aspects, then the foreign buyers saw the mark and thought SZ was the abbreviation of Chinese Pinyin Shanzhai, so they called the goods from Shenzhen Shanzhai. Relevant data shows that 150 million Shanzhai mobile phones were shipped from Huaqiangbei in 2007, and the solutions of Shanzhai mobile phones are mostly from MediaTek of Taiwan, which is the result of the key project of MTK. About 70 million Shanzhai mobile phones were exported, accounting for about 30% of China's total mobile phone shipments of 550 million in that year.


                Here I want to boast of the Pacific Security Market in Huaqiangbei, and the security monitoring belongs to shenzhens sunrise industry. High-speed ball, network camera, high-definition camera, digital matrix, picture divider, infrared camera, vehicle recorder and other products are complete, and medium-sized enterprises such as Wanjiaan, Jinjijia, Sanbaiyang, Xiangfei and Ailifu are all developing quite well, which have initially formed industrial ecological clusters in Shenzhen. But later, some companies in Hangzhou like Haikang Micro Vision, Dahua, Red Apple, and Mingjing developed rapidly with the strong support of the government, and they constantly squeezed the market of Shenzhen enterprises. Finally, Shenzhen's security monitoring industry group was defeated by Hangzhou and fell into a deep depression.


               Huaqiangbei is also the release point and propaganda point of new products. For example, during the peak period that new smart phones and intelligent wearables have been launched in the past few years, the bosses of Huaqiangbei can take out the latest products from the carton under the counter the next day when Apple, Huawei, Samsung, Xiaomi and other products are released.Popular online products such as fidget spinner, twister car, selfie stick and TWS Bluetooth headset are all originated from the professional market of Huaqiangbei!What should be added is that about 100 million second-hand mobile phones are sold all over the world after being refurbished by people in Huaqiangbei on average every year, which It is also a highlight of Huaqiangbei market!


               The Electronics Street in Huaqiangbei, together with various professional markets in Huaqiangbei, the target customers are mainly B2B professionals, bringing people and information flow to Huaqiangbei during working hours!


A photo of Song Shiqiang in his office in Huaqiangbei at the beginning of the business



VII. Huaqiangbei Business Area


                “Business Area” is a comprehensive commercial concept put forward in the 1990s, which is the development of the concept of shopping mall in those days.Business area is defined as a business gathering point covering an area of 5-8 square kilometers within 30 minutes by car, which can meet the needs of eating, drinking, playing, entertaining, traveling and shopping for families in this area.Huaqiangbei business area covers Huangmugang, Baihualing, Yannan Road, Huaqiang South, Futian South, Gangxia, Tian Mian and other large high-end communities and natural villages. In holidays, it also radiates further around the place, and Dongmen International Trade South Lake Road in Luohu District is another one of the two major business areas in Shenzhen.


                The first batch of shopping malls in Huaqiangbei are Maoyetiandi, Junshang Department Store, Junshang Shopping Center of Zhonghang City and NICO Women's world famous store, NICOs earliest popular outlet store is also the only one in Huaqiangbei.More recently, there are Shijihui Shopping Mall jointly developed by my old employer Hutchison Whampoa Real Estate and ZhonghangCity, and Jiufang Shopping Mall in Huaqiangbei is now the largest single shopping mall.


              These shopping mall centers whose main business forms composed of the department store and restaurant attract people who are free and on holiday, and people are provided with the comprehensive supporting services.If someone feels tired after shopping, its a good idea to have a foot bath at Zixia Footbath, which is also the meaning of Huaqiangbei business area!


The website of Kinghelm company (www.kinghelm.com.cn)




VIII. The advantages of Huaqiangbei

                    Huaqiangbei means the great Huaqiangbei and the extensive Huaqiangbei. The invisible advantages of Huaqiangbei are its siphon phenomenon and spillover effect.


                    Huaqiangbeis siphon phenomenon is the advantage that Huaqiangbei can absorb and accommodate the more and better merchants, brand and value can overflow, radiate and serve more non-local customers.With the development of the time, some functions of Huaqiangbei are weakened, but it still has influence and vitality in a certain time and scope.So I opened the first image store of Slkor in Huaqiangbei, where there are theoretical basis and emotional sustenance here.Huaqiangbei also has spillover effects, and the Saige market is a copy of Huaqiangbei model.Wang Laobao, the top leader of Huaqiangbei, was invited by Chongqing municipal government to preside over and manage the local electronic market. The Hualijia electronic market in Pinghu Huanan Town managed by Xu Jinli, the No.1 woman of Huaqiangbei Electronics, is the 2.0 version of Huaqiangbei model.The talents, business ideas, goods, new products and innovative models coming out from Huaqiangbei are Huaqiangbei's contributions to the industry and become a part of Huaqiangbei culture.


                    Huaqiangbei is not only the electronic information product trading center, but also has many functions such as information exchange, technology introduction, product display, product design creativity, logistics and distribution, enterprise incubation and so on.The biggest advantage of Huaqiangbei lies in the speed of information and market response. Huaqiangbei business model has a high conversion rate, low threshold, a large number of entrepreneurs and a clear goal to make money. Aiming at the TWS Bluetooth headset market, Kinghelm and Slkor has pre-developed targeted products in advance On the basis of the existing technology. The Bluetooth ceramic antenna of Kinghelm and the Hall sensor & FET of Slkor also make a big profit naturally. The KH3216 and SL2301 have also become popular products, and customers had to queue up to get their goods.


                   The highly concentrated Huaqiangbei industry factor resources along with the power of the market, are driving the development of the enterprises. During the Shanzhai period of Huaqiangbei, there are not only Shanzhai, Grey product, Hongkong goods, but also the rapidly-developed mobile phone brand such as Kejian, Coolpad, Gionee, Transsion, Doov, GETEK and G5, which is the representative of Huaqiangbeis mobile phone brands.


Some products of Kinghelm (www.kinghelm.com.cn)



IX. Huaqiangbeis challenge and crisis
Huaqiangbei is faced with the depression and confusion after its savage growth. The challenges and crises it faces may hide opportunities behind them.The ups and downs are the law of history, life and death, development and transformation is a wheeled proposition, but when the waves of history hit, everyone should grasp the straw around him.The duty-free shop next to Shanghai Hotel is no longer popular. After many adjustments of business forms, it has changed beyond recognition. And CEPA Hong Kong and Macao Mall and Oriental Fashion Square have also disappeared. Zijing Mall transformed into a trading center of imported food, and some stores like Manha, Womens World also joined the mall.


                     With the development of the economy and electronic information in Chinas inland cities, the local industrial ecology will give birth to the same kind of market, and also eliminate the radiation power of Huaqiangbei.Vietnam, India, Cambodia, Indonesia, the Philippines and other Southeast Asian countries have accepted a large number of low-end transfer capacity of China's manufacturing industry by virtue of their advantages in labor costs, infrastructure, capital and policies. On the one hand, the policy support and low cost of Southeast Asia attracts the migration of international electronic information manufacturing industry in the region, which will lead to the decrease of large enterprises within the territory of China; on the other hand, they will upgrade after undertaking the low-end production capacity in a certain time, which will make an impact on the areas and customers covered by Huaqiangbei market!


                    What the Internet brings to Huaqiangbei is that information tends to be symmetrical and squeezes the gray area. The growth of Internet e-commerce has brought a comprehensive impact to Huaqiangbei.Since 2014, JD.COM and Alibaba have been listed in the United States, and e-commerce has destroyed offline business models. In the field of electronic components, B2B platforms such as Huaqiang Electronics Web and IC Trading Web have daily traffic of hundreds of thousands.The daily flow of Lichuang Mall, ICHUNT, Yunhan Mall and Electronicfans also reached hundreds of thousands, and the small batch orders of Lichuang Mall reached nearly ten thousand every day, which also seriously divided the information flow, customers and sales of Huaqiangbei. The convenience of professional information dissemination reduces the number of people in Huaqiangbei, and also leads to the decentralization of information carriers. The consumption of supporting services for people will also decrease, which also weakens the prosperity of Huaqiangbei.



The website of Slkor (www.slkoric.com)


                   Huaqiangbeis enterprises are the real owners of Huaqiangbei, but the defects of Huaqiangbeis enterprises are obvious. Although there are a large number of distributors, there is no technological innovation ability.The bosses in Huaqiangbei have no brand awareness, no ability to build an organization and management team, and no direction for supply chain management, channel laying and enterprise systematic construction.


                   Enterprises with better development will move out of Huaqiangbei. Neither Without the leadership, demonstration and coordination of operation and management of large enterprises, nor without the ecological circle built for large enterprises, the problems of small enterprises in Huaqiangbei will become more and more obvious.The Science and Technology Park which is equal to Huaqiangbei has a similar economic scale, but it has taken another road of technology and scientific innovation, and now it is getting better and better.We Kinghelm and Slkor headquarters will move to the Science and Technology Park next year, our enterprises from Huaqiangbei are gradually close to the high-tech enterprises in the Science and Technology Park, and absorb their nutrition and grow greater again!



Some products on Slkor’s website (www.slkoric.com)



X. Huaqiangbei culture
We have talked about the spirit of Huaqiangbei above, here I first proposed Huaqiangbei culture.Huaqiangbei without culture will have no soul, and it is meaningless to study its future.


                 Huaqiangbei's entrepreneurial spirit stems from people's desire for a better life and the pursuit of wealth after years of living in poverty.Huaqiangbeis spirit of aggressiveness and daring is based on the fisherman culture and even pirate culture of Chaoshan people who dare to take risks, integrating the blood of Hunan people who can endure hardships and have much patience, and coupled with the Sichuan-Chongqing tradition, Huaqiangbei sublimated into a booming power in the infinite business opportunities.In Huaqiangbei, we can see the vitality of the wild growth of small enterprises, and the creativity of making profits by violating the rules when meeting unreasonable rules.Even if someone loses in Huaqiangbei, he or she will look for the next opportunity to bob up like a cork.


                Huaqiangbei, can make someone rich overnight and reach the peak of life. Stories of fortune and failure happened almost every day at Huaqiangbei.What is Huaqiangbei? It is the amplifier of desire and the field of human nature.


                The above forms the unique culture of Huaqiangbei, enlighten our behavior, spread the brand of Huaqiangbei, publicize the value of Huaqiangbei, and make us recall Huaqiangbei and read Huaqiangbei.


             Will tomorrow's Huaqiangbei be the same deep meaningful as the previous Shanghai Bund? Shanghai Bund was once the paradise of adventurers, there are the pleasure and enmity of Qing Gang as well as the beauty and charm of Bailemens dancers, which has evoked people's imagination so far! James Wong, a brilliant Hong Kong lyricist, wrote the famous work Shanghai Bond without visiting Shanghai, and it was very popular at that time.The hazy and abstract beauty deduced from the long distance and distant times are what we like most.


               Many years later, who will remember anything about Huaqiangbei? Does Huaqiangbei live in my articles, in the story of the writer Xie Jiapeng, or in the manuscript of the WeChat official account Beidou Expert?


               Huaqiangbei, We love you!




Brief Introduction of Song Shiqiang


    On top of being a private economic researcher of the Economic Development Center of the State Council, Song Shiqiang is also a member of the electronic information expert database of China Association for Science and Technology, and a commercial research expert of Huaqiang North. Mr. Song was the former CEO of an international real estate listed company. He has invested and managed a list of companies such as Shenzhen SlkorMicro Semicon Co., Ltd. and Shenzhen Kinghelm Electronics Co., Ltd., building the "Slkor" and "Kinghelm" brands. Both "Slkor" and "Kinghelm" are national high-tech companies and they have obtained dozens of invention patents and software copyrights. In addition, Slkor is one of the fastest-growing semiconductor companies in China, and its vision is to become "the leader of the domestic semiconductor industry".




         "Kinghelm Connecting Beidou" is the slogan of Kinghelm company. Beginning from the development of Beidou antenna, Kinghelm has developed and produced microwave antenna, RF connection line and electrical signal connector and other products, embracing the intelligent era for Internet of Everything.  Song Shiqiang has a wide reputation and influence in the semiconductor, Beidou positioning and navigation industry. As one of the renowned business leaders in Huaqiang North Commercial Area of Shenzhen, Mr. Song is striving to make his best efforts to improve the business environment, hoping that Huaqiang North will become a catalyst for reform and opening the window of Shenzhen's economic development.


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