ICM
Our business model for ICM is based on our close relationships with over twenty
top-tier design houses in China, which allows us to publish roughly twenty new reference
designs to our online search platform each month. Once ICM customers select a reference
design that fits their general requirements, we can modify the design in close collaboration
with the customer to fit the exact needs of their local market, providing a competitive
advantage for our customer. We believe this "joint design" business model is unique,
and it is the key to our exceptional performance in ICM in 2010 and to our future
growth.
We began our marketing efforts by focusing on emerging markets, particularly India
and Indonesia, the second and fourth most populous countries in the world, respectively.
These markets represent a significant growth opportunity for SinoHub. A recent JP
Morgan Communication Equipment Report forecasted global white-box handset sales
to rise to 640 million units in 2011 compared to 534 million in 2010, a 20% increase.
Our goal for 2011 is to manufacture and sell 3 million white-box phones, 160% more
than the 1.15 million units we built and sold in 2010, which is less than 5% of
the white-box handset market.
ECSS
SinoHub has built a successful business in ECSS based around our proprietary SCM
software platform. With SinoHub's Web-based SCM platform, critical functions are
linked through the SCM platform and third party suppliers can easily be integrated
into the business. This provides design houses and manufacturers with a system that
is flexible and open, reduces time to market, enables easy access to the best suppliers
for any function, and provides transparency of information for all parties involved.
A major benefit of our ECSS business model is our ability to leverage the information
gained through our SCM platform to make sales in our electronic component sales
business. Today, SinoHub has access to a proprietary database of over 50,000 electronic
components, enabling timely fulfillment, arbitrage and brokering opportunities.
In the future, we plan to improve our ECSS business by bringing in more large design
house customers who add leverage to our supply chain management services business,
can purchase electronic components from us and can become suppliers of designs to
our ICM business segment.