China Electronics First Street (Huaqiangbei) not only has chips, but also these good things

In Huaqiangbei, known as the "Silicon Valley of China", making money is the top priority. Huaqiang Beizhi is an important channel for the circulation of electronic products and chips, as well as a distribution center for popular products in the market. From the earliest industrial zone to the electronic trading market, Huaqiangbei's positioning is constantly changing, and it is also constantly exporting excellent products to society.



And the heroes behind this are a group of entrepreneurs who dare to think, do, and innovate.



As the place with the largest variety of goods in the country, Huaqiangbei can almost meet all human needs for electronic devices. Consumers can always buy popular products on the market here, and enterprises can always get the most scarce goods here.



The core competitiveness of Huaqiangbei entrepreneurs is to respond quickly to market demand and adjust supply and demand relationships.

Fashionable Huaqiangbei



01
Huaqiangbei Businessman
What kind of business experience do readers have?


The entrepreneurial environment in Huaqiangbei can be summarized as "fast" and "ever-changing". Because this is not only a distribution center for goods, but also a testing ground for innovation and entrepreneurship. Entrepreneurs here need to have a keen sense of the market and quick adaptability in order to stand firm in fierce competition.



Taking several major trends in history as examples, including the explosion of the mobile phone market in 2005, the rise of beauty products in 2017, and the shortage of chips in 2020, are all the best times for entrepreneurs to seek gold.



For example, in the mobile phone boom of 2005, some people bought factories to build production lines for mobile phones, some engaged in component trade, and some started their own brands. Every link in the industry chain could make money. In 2020, due to the chip shortage trend, traders followed market price fluctuations by distributing orders to customers, integrating the original factory supply chain, agency and distribution, and using their inventory to make a fortune.



Popular products have created strong purchasing power and also supported a large number of companies. It is evident how important the popular products in the market are for Huaqiangbei. Following the fluctuations and waiting for the wind, this has almost become a consensus among entrepreneurs.



However, the market for consumer electronics is still slowly recovering, and it is not easy for popular products to emerge. Moreover, big trends such as smartphones and chips are hard to come by. Therefore, currently, entrepreneurs in Huaqiangbei are looking for some small opportunities.



02
Doing business in Huaqiangbei
Sensitivity to air vents must be maintained


On the wind, pigs fly up, let alone shrewd businessmen?



However, in the current trend, entrepreneurs often face enormous competitive pressure because when a popular product appears, a swarm of people will flock to it. Even small air vents are very curly.



So, the sensitivity of entrepreneurs to the trend becomes crucial.



Taking the popular high-speed hair dryers across the entire network in 2023 as an example, due to the independent research and development of domestically produced high-speed brushless motors, production costs have been significantly reduced. As a result, the unit price of the product has dropped from over 3000 yuan to below 800 yuan, creating a wave of new and old alternation, directly creating a small trend.

Concept diagram of high-speed hair dryer



At that time, the industry attracted many brands to join, many of whom came from Huaqiangbei. According to statistics from Aowei Cloud Network, there were only 6 brands and 16 models in the high-speed hair dryer market in 2020. However, by June 2023, a total of 84 brands had launched 139 models.



Behind this, those who are highly sensitive to the wind have already made a fortune, those who hesitate have only received the remaining dividends, while those who ultimately attack cannot even drink soup. The reason is simple. Brands require sedimentation and accumulation, and more importantly, the trust of users. Therefore, manufacturers who enter the market earlier always gain reputation and a larger market share.



It is not difficult to determine whether entrepreneurs are sensitive to the trend and whether they enter the market early enough, which directly determines whether they can make money.



For example, Leifen, which always stands at the forefront of innovative products, has seized the opportunity of high-speed hair dryers through technological innovation. According to data from Aowei Cloud Network, its market share reached as high as 60% in the first half of 2023.



Due to seizing the opportunity, Leifen quickly became a leading emerging consumer electronics brand, attracting many entrepreneurs from Huaqiangbei to learn from it. "Laifenping replaces Dyson, and Huaqiang Beiping replaces Laifenping" has also become a joke in the public recently.



But if the words are rough and the reasoning is not rough, benchmarking against Leifen may really catch up with the trend.



Because recently, Leifen has found gold in a new trend, but unlike in the past, this time Leifen did not catch up with the trend, but created it.



03
How to find the next air vent?


The sweeping vibration electric toothbrush launched by using servo motors on electric toothbrushes has subverted and innovated the brushing mode, which is of great significance to the industry. The sweeping vibration electric toothbrush has gradually become a consensus for the development and innovation of the electric toothbrush industry in 2024, and manufacturers such as Xiaomi and Chasing are also following suit. Data shows that during last year's "Double Eleven" period, the first month sales of electric toothbrushes with sweeping vibration exceeded 150000 units, with sales exceeding 40 million yuan.

Scanning and vibrating integrated electric toothbrush (Image source: Network)



Such achievements not only reflect the huge market behind electric toothbrushes, but also make many entrepreneurs in Huaqiangbei envious, because it is estimated that compared to high-speed hair dryers, electric toothbrushes may have a stronger momentum and larger volume.



Technically speaking, compared to traditional electric toothbrushes, the use of servo motors not only improves the cleaning efficiency of the toothbrush, but also enables personalized adaptive adjustment, reduces noise, and solves the problem of reduced vibration and swing when the load of traditional electric toothbrushes increases.



Secondly, according to data from Zhiyan Consulting, the penetration rate of the domestic electric toothbrush market is relatively low (8% in China and 40% in Europe and America), and there is great potential for growth in the future. In other words, now is a good time to get in. A hair dryer or one per household, but one toothbrush per person, one household may have three needs. This can be understood as, in an ideal state, the size of an electric toothbrush is about three times or even more than that of a high-speed hair dryer.



Data shows that there are nearly 300 electric toothbrush brands worldwide in 2023, with a market size of 6.72 billion yuan. Nowadays, the replacement demand brought by new electric toothbrushes also benefits from this stock market. In an ideal scenario, the average annual revenue per brand can reach 20 million yuan.

Electric toothbrush (Image source: Network)



At present, many entrepreneurs from Huaqiangbei have been laying out the market for sweeping and vibrating electric toothbrushes. As mentioned earlier, new trends always arise from new technological changes, so everyone's attention is focused on the core technology - servo motors. It is understood that currently only a few products on the market are competitive.



Taking the integrated scanning servo motor driven by Yufan Microelectronics as an example, the perfect integration of the drive board and motor is achieved. Compared with traditional split solutions, it reduces the size of the control board by improving integration, effectively reducing the cost for manufacturers and enabling them to achieve all functions with smaller PCB panels.



And the reason why Yufan Microelectronics stands out is mainly because as a supplier, it deeply understands the pain points of the industry and manufacturers.



After all, above the wind, it is the sensitivity of entrepreneurs to the market and the strength of their products; Underneath the trend lies the cost control and supply chain professionalism of entrepreneurs.



04
Choose excellent partners
Get twice the result with half the effort


Indeed, only with lower prices can we capture a larger market. To suppress prices, it is necessary to suppress costs. It is understood that currently in the electric toothbrush market, the mainstream servo motor solution is a split type, which is divided into the initial axis and motor integrated+control board and drive board integrated. However, the latest solution integrates the motor and drive board together to form a sweeping vibration integrated solution.



Simply put, traditional solutions require multiple chips, while the latest solutions are all using single chip solutions, which are more cost-effective.

Splitting scheme vs Yufan Micro drive integrated scanning servo motor scheme (Image source: Yufan Micro)



But after all, it is an emerging market, and currently there are few companies that can provide such servo motor products and solutions, and Yufan Micro is one of them.



It is understood that Yufan Micro has invited a PhD from Harbin Institute of Technology to participate in the research and development of its integrated scanning servo motor. The addition of top talents has brought advanced research and development concepts and innovative technologies to the company, ensuring excellent performance in precision control, dynamic response, and stability of the servo motor.



In terms of product strength, Yufan Micro's integrated scanning servo motor has reached the leading level in the industry. After professional evaluation, the product has met or even exceeded the inspection standards in multiple aspects. The excellent results presented in the test report have ensured its safety and reliability during its use cycle.

Moreover, as a company with the goal of "technological innovation to change the quality of life", Shunhai Technology is also generous in its research and development investment. It has established a design and development team of 100 people, with core R&D personnel having over 30 years of experience in product design and packaging production, which is also the core force driving the continuous development of the company.





For the electric toothbrush market, in addition to hiring a PhD from Harbin Institute of Technology to assist in research and development, it has also passed multiple certifications, meeting commercial requirements in terms of functional safety and completeness, not only comparable to international first-class solutions, but also significantly reducing development costs.



A reliable supply chain is the only way to create reliable products, which is an eternal truth. But simply having excellent products is not enough to make a company an excellent supplier. Solving customer problems and pain points is the key.



Although electric toothbrushes have great market potential, in reality, many manufacturers or entrepreneurs can only covet this cake. Due to changes in core technology, it has become more difficult to implement.



Simply put, using a servo motor may seem like a replacement part, but in reality, for manufacturers, the entire supply chain system needs to be considered. After all, the transformation of the plan or starting from scratch requires integrating a large number of spare parts and selecting trustworthy suppliers. This is not only time-consuming, but may not necessarily lead to good results, so it is easy for entrepreneurs to miss this opportunity.



Therefore, not only does it provide servo motor products, but it also prepares supporting services for entrepreneurs who want to enter the market, reducing the trial and error costs for customers. In addition to providing technical services such as serial communication protocols, we can also provide a complete set of electric toothbrush servo motor solutions for finished product manufacturers. At the same time, for investors interested in developing electric toothbrush business, Yufan Micro can also provide spare parts suppliers involved in electric toothbrush manufacturing.



In other words, what is provided is not only a product, but also a set of solutions. At a larger scale, it is also an opportunity to make money in the face of adversity.



It can be seen that as a company that has been deeply involved in the supply chain for many years, its business has expanded from component trade to chip packaging, and now it can independently develop and provide integrated scanning servo motor solutions. Its strength has been recognized by a large number of customers. In the hardware industry such as electronic products, we are gradually becoming experienced hardware supply chain experts.