Leading Enterprises and Professional Markets in Huaqiangbei

Song Shiqiang's Rostrum|宋仕強|Song Shiqiang|

2024-03-14 02:43:43 844

Mr. Song Shiqiang has released a series of short videos and articles titled "Song Shiqiang's Rostrum" to share his life experiences and insights in learning, work, and daily life. This is a result of his in-depth research into Shenzhen Huaqiangbei Electronics Street. The "Song Shiqiang Rostrum" videos have been published on various short video platforms such as Douyin, WeChat Video, Bilibili, Xiaohongshu, YouTube, and TikTok, while his articles are shared on various internet platforms. Mr. Song Shiqiang is the General Manager of both Kinghelm Electronics (www.kinghelm.net) and SLKOR Micro Semiconductor (www.slkoric.com), leading these two high-tech companies to rapid growth with consecutive annual revenue growth exceeding 100%. "Kinghelm" and "SLKOR" have gradually become internationally renowned brands!

The business district, professional markets, and China's premier electronic street in Huaqiangbei

Leading enterprises in Huaqiangbei play a significant role in driving the development of cities or regions, especially industry giants and key players in the supply chain. Internationally, companies like Boeing in Chicago, Samsung Electronics in Suwon, South Korea, and Foxconn in Zhengzhou, China, have immense influence. Conversely, the relocation of automotive industries, such as General Motors, has led to the decline of Detroit as a "Rust Belt" city. In China, the impact of Tencent in Nanshan Science and Technology Park and Huawei in Songshan Lake, Dongguan, is evident. Even on a smaller scale, the influence of successful companies on surrounding businesses can be substantial. For instance, when SLKOR Microelectronics relocated its headquarters to the same building as Shenzhou Computers last year, Luckin Coffee promptly opened a branch downstairs. Now, the "Sauce Fragrance Latte," a collaborative product between Luckin Coffee and Maotai liquor, has become a daily cup for the research and development engineers at Kinghelm Electronics and SLKOR Micro Semicon!

On the night of National Day, Huaqiangbei was unremarkable and calm

"Huaqiangbei experienced a period of rapid development in its early days, which was largely driven by leading enterprises such as Huaqiang Group, Seg Group, Sanda Group, Jinghua Electronics, and Huafa Group. However, thirty years later, these enterprises are no longer as influential as they once were. During the National Day holiday in 2023, I conducted research and visited the sales store of Jinghua Electronics. To my surprise, the store was closed at noon during the peak season. Upon further investigation, I discovered that the store was outdated and stocked with obsolete products like the recording pen, a joint venture product between Jinghua Electronics and Philips from years ago. The product's value proposition and commercial viability have significantly declined over time. Similarly, Seg Group's subsidiary, Seg Hitachi, produces liquid crystal television screens that have long been phased out by the market. Additionally, Huaqiang Group's focus has shifted to industrial real estate, with the primary leverage being the "Fangte" amusement park and the "Guaotouqiang" cultural and creative products, which serve as the main bargaining chips for the group to acquire land from various local governments. As for its subsidiary, Huaqiang Electronics, its main business is to compete with small merchants in Huaqiangbei for market share. Therefore, I believe that apart from Huaqiang Electronics' online platform, the leading enterprises of the past can no longer drive the coordinated development of Huaqiangbei's industries.

The declining Jinghua Electronics in Huaqiangbei

The previous landlords of Shenzhen Huaqiangbei, Rheinland Group, Huafa Group, and Sanda Group, have gradually exited the stage. Former mayor Ma Xingrui made the decision to introduce the centrally-owned enterprise China Electronics Corporation, which has a high-profile business layout that does not match the "small, fast, flexible, scattered, and chaotic" style of Huaqiangbei. As a result, the "Hardware Entrepreneurship Center" established by China Electronics Corporation in Huaqiangbei is facing the dilemma of not being able to localize. In summary, Huaqiangbei urgently needs leading enterprises that are technologically advanced and capable of co-development, connecting the small and medium-sized enterprises in Huaqiangbei to fully activate its resources, and building a healthy and thriving commercial ecosystem to drive the second takeoff of Huaqiangbei.

SLKOR YouTube Channel - Song Shiqiang's Rostrum

The professional markets, electronic street, and various supermarkets are the three main pillars that bring foot traffic and business to Huaqiangbei. During its heyday, there were up to 50 professional markets in Huaqiangbei, covering various industries such as electronic digital information, smart hardware, and trendy toys, with each market being supported by a strong local industrial chain, converging to form a large commercial ecosystem in Huaqiangbei. In the early days, the Jiahua Foreign Trade Clothing Market, the Clock and Watch Grand Market, Wanfang Computer City, and the Pacific Security Market made significant contributions to the development of Huaqiangbei. During the era of counterfeit mobile phones, there were also numerous mobile accessory markets, such as Yuanwang Digital City and Manhattan Digital City on Huaqiangbei Road, Mingtong Market on Huafa North Road, and the Tontrend, Longsheng, and Feiyang Era Markets on the first, second, and third floors of Nongken Building in Huaqiang South, offering products including mobile phone components and peripherals such as phone motherboards, acrylic back covers, tempered glass panels, phone cases, data cables, stickers, power banks, headphones, chargers, adapters, counterfeit software, repair shops, smuggled phones, refurbished phones, IMEI changing devices, packaging boxes, and barcodes.

Road closures, e-commerce, and industrial transfer have had significant impacts on Huaqiangbei

During last year's National Day holiday, I visited Huaqiangbei and saw the eastern area in a state of disrepair. The "Mingtong Cosmetics Market," "Manha Cross-border Beauty Market," and several imported food wholesale markets were all experiencing a downturn. The predecessor of the "Mingtong Cosmetics Market" was the "Mingtong Mobile Phone Accessories Market," which has undergone multiple rebranding due to poor management and other issues. Even during the National Day holiday, there was a lack of vitality, and the malls and storefronts were run-down, with poor hygiene, chaotic traffic, and outdated municipal facilities. In stark contrast, the western area of Huaqiangbei, with the construction of new commercial centers such as Jiufang, Century union, and Junshang, appeared much more lively!

The run-down markets and environment in the eastern area of Huaqiangbei.

Mr. Song Shiqiang believes that the deep-seated reason for the decline of the professional markets in Huaqiangbei is the double disintegration of its industrial and ecological chains, as well as the rise of e-commerce and the decentralization of the Internet, which have severely impacted the "front store, back factory" model. Take the Pacific Security Market, for example. It was supported by security companies that focused on cameras, high-speed balls, digital matrices, network cameras, and other products from the Pearl River Delta region, as well as those involved in building "safe cities." However, the market declined after Hangzhou's Hikvision and Dahua took over the market. Previously, watches were one of Shenzhen's pillar industries, but now brands such as "Tianwang" and "Yibo" are no longer visible, with only "Fiyta" still struggling alone. Nowadays, the rise of smart health and fitness electronic watches has dealt the final blow to the old watch industry, and the clock and watch market is also struggling. There are also policy risks, as the government cracks down on grey industrial chains. Previously, Huaqiangbei grew recklessly and many people made money from smuggling and counterfeit phones. The cross-border beauty and imported food markets also operated in a grey area in recent years, but they have since declined due to government crackdowns. These are the shortcomings of Huaqiangbei and must be thoroughly avoided in the future.

Series of Kinghelm RJ45 Ethernet Jack Products

According to the thermodynamic theory of "entropy increase", without strong external energy input and management of disorder, the situation in Huaqiangbei will only get worse. However, there is an opportunity in adversity, as businesses such as Mingtong, Manhattan, and Zijingcheng are losing value, and the expectations of property owners and merchants have hit rock bottom. Intervention from the government and professional organizations is the best chance for improvement. The government should re-plan and transform the area, attract real estate developers with urban operation and resource integration capabilities to enter the market, integrate brand and merchant resources, increase foot traffic and customer retention, and draw lessons from successful cases such as Wanda Plaza, Joy City, and CR Vanguard.

I’m Song Shiqiang, CEO of Kinghelm (www.kinghelm.net) and SLKOR (www.slkoric.com). My suggestion is that on the one hand, the government needs to put in a lot of effort to attract high-quality enterprises. Local companies such as Huawei, ZTE, and DJI, which operate in hardware and have similar technical routes and development models to those in Huaqiangbei, can also support the scale of Huaqiangbei. Although Huaqiangbei is a large hardware (including embedded software) distribution center, it lacks platforms, organization, system, and cohesion. However, the Huawei HarmonyOS and Xiaomi MIUI systems can use intelligent terminals to connect users, enabling continuous iteration of software and new products. It is said that MIUI has already reached an astonishing 1.1 billion users. On the other hand, Futian District and Huaqiangbei Street can select companies with better technology and growth potential from among the numerous enterprises in Huaqiangbei, focus on cultivating them, nurture them with water before bringing them up, and then drive the growth of Huaqiangbei when they mature.

SLKOR's Second Store in Huaqiangbei

The specialty market and flagship stores are keeping pace with the times. For instance, the Apple flagship store at Yitian Holiday Plaza in Nanshan District is often packed with people, and the same goes for Huawei's digital product flagship store. Can the government introduce flagship stores of Apple and Huawei to Huaqiangbei? Moreover, efforts can be made to introduce the Huawei HI car and BYD car 4S stores, DJI drone exhibition halls, as well as image stores of SLKOR Semiconductor and Kinghelm Electronics, along with popular online shops. This not only promotes national brands but also enhances the popularity of Huaqiangbei.

Song Shiqiang is testing silicon carbide MOSFET products

Introduction of Mr. Song Shiqiang

Mr. Song Shiqiang is the General Manager of two high-tech companies, SLKOR Semiconductor and Kinghelm Electronics. He is an expert of the China Electronics Society, a research specialist in Shenzhen Huaqiangbei, and a columnist and science popularizer. Mr. Song Shiqiang integrates macroeconomic theories with the practical product research and operational management of the companies, leading them to rapid development. The headquarters of SLKOR (www.slkoric.com) and Kinghelm (www.kinghelm.net) invested and managed by Mr. Song Shiqiang are located in Longgang District, Shenzhen, adjacent to Huawei. The brands enjoy international recognition and reputation. Mr. Song Shiqiang has delved deep into the research on Huaqiangbei with thematic series articles such as "Research on Huaqiangbei," "Future Directions of Huaqiangbei," "Transformation and Development Recommendations for Huaqiangbei," "Localization of Electronic Component Supply Chains," "Internationalization Process of SLKOR Semiconductor," "Spirit and Culture of Huaqiangbei," "Internet Plus in Huaqiangbei," etc. These articles have been widely reproduced by authoritative domestic media such as People's Daily, Xinhua News Agency, and Global Times, as well as international media including the Associated Press, Yahoo News, Harvard Business Review, and The Wall Street Journal.

The Kinghelm HDMI and Type-C Connector Series

SLKOR Semiconductor has developed a range of advanced products, including silicon carbide (SiC) SBD diodes, SiC MOSFET transistors, IGBT transistors, ultra-fast recovery diodes, Schottky diodes, ESD protection diodes, TVS transient suppression diodes, and transistor series. The power devices include high, medium, and low voltage MOS transistors, thyristors, bridge piles, power management LDO, AC-DC, DC-DC chips, sensors, high-speed optocouplers, passive crystals, and other products. Meanwhile, Kinghelm focuses on the microwave and RF fields with its "Connecting the World" slogan. The Kinghelm brand products include Beidou GPS dual-mode antennas, Bluetooth antennas, WiFi antennas, NB-IoT, LORA, UWB, Beidou B3 frequency point antennas, 4G, 5G antenna series, as well as matching RF adapter connectors and terminals. At present, Kinghelm's products have expanded into three major categories: board-to-wire connectors, board-to-board connectors, board sockets, plugs, small signal connections and switches, automotive and motorcycle wire harnesses, special wires for industrial, medical, and scientific research, and non-standard customized products. Together, SLKOR Semiconductor and Kinghelm have served over 15,000 customers worldwide and can meet the needs of industries such as high-end equipment, communication and power, solar energy photovoltaic, medical equipment, industrial Internet, new energy vehicles, small two-wheeled vehicles, power tools, and more.

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Leading Enterprises and Professional Markets in Huaqiangbei

客服QQ2635709730

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2635709730