IT integration is the trend of the next 10 years

In the next 10 years, the Chinese economy will continue to maintain rapid growth, and the Chinese IT market will also grow further. For IT vendors, how to grasp the future development trend of China's IT market is an opportunity and a challenge.

Currently, the first and second-tier cities in China's IT market are approaching saturation. In contrast, the small and medium-sized cities and rural markets still have great potential and become the blue oceans that major IT vendors compete for. It can be said that whether it can effectively expand the 3-6 level market will become the key to the success of the IT brand in the future competition.

According to my observation, the well-known IT vendors currently on the market are basically facing a big problem: they have a rich product line, and each major product line has individual combat operations, resulting in duplication and waste of resources. In the face of the intricate 3-6 level market, IT vendors will appear unsatisfactory. It can be asserted that under the current development trend of the IT market, the traditional channel model has already been on the decline, and IT consolidation is imperative.

To implement IT integration, we must quickly win the opportunity to win. IT integration is a huge challenge. It requires manufacturers to integrate products, resources, and the advantages of channels, information, and talents in each region, optimize the existing upstream and downstream resources as soon as possible, and provide vertical distribution and one-stop resources for terminal channel providers. Services, thereby enhancing the ability for consumers to provide more value-added services.

In IT integration, channel integration will become a top priority. Local IT vendors have been cultivating the market for many years and their channel advantages have been significant. Compared with local IT vendors, channels have always been the weakness of international IT vendors in the Chinese market. In the process of IT integration, international IT vendors often face greater challenges.

In my opinion, only by thoroughly changing the relationship between channels and vendors can IT consolidation be successful. Channels and manufacturers are not a game, but they move from competition to competition. Therefore, IT integration needs to be zeroed, sanded into towers, and with the help of the terminal penetration of a large number of small and medium-sized distributors, full coverage of the 3 to 6-level market is achieved.

In IT integration, product line integration is the key. Establishing IT product stores in small and medium-sized cities has become an effective method. For example, Samsung has built a large number of Samsung IT stores in the 3-6 level market, integrating three major product lines of monitors, notebooks and printers.

Practice has proved that IT integration is feasible and brings tangible benefits to consumers, distributors, and vendors. Through IT integration, farmers' friends and big city consumers can enjoy the same products and services. In Samsung's IT shops, farmers' friends can enjoy genuine guarantees, one-stop shopping, and other services, which greatly satisfy their high demands for brands and products.

Small and medium-sized distributors generally reflect that the recent days have become increasingly saddened. After IT integration, the roles of small and medium-sized distributors have changed, and they can directly obtain more resources from manufacturers, including product support, personnel support, logistics and distribution, and technical training. Therefore, they are more competitive in the local market. According to dealer feedback, sales and sales profits rose by an average of more than 20% after joining Samsung's IT store. It can be said that IT integration has made the days of small and medium-sized distributors even more moist.

For vendors, IT consolidation will bring immeasurable benefits. IT integration means that the cost of channels is reduced, and manufacturers can make more profits to benefit the channels. The in-depth channel coverage of manufacturers will be significantly enhanced, channel efficiency will be further enhanced, and then enhance their own competitiveness; manufacturers are user-centric, closer to the consumer, and the market responds more quickly.

The long-term benefit of IT integration is that, with the help of small and medium distributors, manufacturers have created a unified platform with numerous outlets, which has laid a solid foundation for the integration of more product lines and entering the 3-6 market.

The infinity of channels, adjustments, development and integration have become new keywords for channels. Facts have proved that IT companies at home and abroad with a leading growth rate and market share in the Chinese IT market have all attached importance to the establishment of channels, the selection of channel partners, and the creation of channel incentives. Only by adapting to changes in the market and following the tide of IT integration can we survive better in fierce competition.

Samsung Electronics has taken root in China for many years and has good insight and predictability in the market. Samsung Electronics timely launched its IT consolidation plan. In the third quarter of 2009, Samsung Electronics announced a three-star World Plan for China's 3 to 6-tier market, integrating three major product lines: monitors, notebooks, and printers. Samsung IT stores exceeded 2,500 within one year.

From the current point of view, Samsung IT's product lines are pulling each other. Whether it is a single product line or the whole, sales have improved significantly. It can be said that Samsung's IT integration process has been very smooth, and the effect is significant.

Today, Samsung IT has new moves. In November 2010, the Three Stars World Caravan Tour was launched, and the caravan will be flown to more than 600 T4-T5 cities nationwide. It will continue until the end of December 2011 and will span more than 1 year. In terms of time and scale, they are all generous.

IT consolidation is the trend of the next 10 years. IT integration helps vendors maximize resource utilization and flatten channel management. It can be said that the greatest benefit of IT integration is that in the ever-changing IT market, from the vendor to the regional market can respond flexibly, and maintain a dominant position. The success of Samsung's IT integration is the best example.

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