ICZOOM Group Inc., through its wholly owned subsidiaries, engages in the sale of electronic components to customers in the People's Republic of China (PRC).
The company's products are primarily used by China based small and medium-sized enterprises (SMEs) in the consumer electronic industry, Internet of Things (IoT), automotive electronics, and industry control segment. In addition to the sales of electronic component products, the company provides services, such as temporary warehousing, logis...
ICZOOM Group Inc., through its wholly owned subsidiaries, engages in the sale of electronic components to customers in the People's Republic of China (PRC).
The company's products are primarily used by China based small and medium-sized enterprises (SMEs) in the consumer electronic industry, Internet of Things (IoT), automotive electronics, and industry control segment. In addition to the sales of electronic component products, the company provides services, such as temporary warehousing, logistic and shipping, and customs clearance.
The company primarily generates revenue from sales of electronic components products to customers. In addition, the company generates revenue from service commission fees for services provided to its customers.
Sales of Electronic Components Products
The company sells two categories of electronic component products, including semiconductor products and electronic equipment, tools and other products. The company's semiconductor products primarily include various integrated circuit, discretes, passive components, optoelectronics, and its equipment, tools and other electronic component products primarily include various electromechanical, Maintenance, Repair and Operations (MRO), and various design tools.
Service Commission Fees
The company's service commission fees primarily consist of fees charged to customers for assisting them with customs clearance when electronic component products are purchased from overseas suppliers; and fees charged to customers for providing temporary warehousing for and organizing the product shipping and delivery after customs clearance.
Business
Anonymous Product Offering
E-commerce platforms, such as Shenzhen Huaqiang Electronic Website Group Co., Ltd, usually charge their registered users an annual service fee and publish the contact information together with the product information provided by their paid members, such as product description part number, and delivery time, on their platforms. This type of e-commerce platforms usually directly posts the information provided by suppliers, without further verifications, thus, there is no guarantee of the accuracy and authenticity of the information provided by suppliers to attract undue attention and promote the sales.
By adopting the anonymous auction methodology used in the stock exchanges and commodity exchanges around the world, the company takes the responsibilities and risks to verify the suppliers and their products and post offering information without suppliers' identity or contact information. This, on one hand, prevents suppliers from utilizing the company's platform to be contacted by customers offline to provide fake, fabricated and unfair information; and on the other hand, allows customers to focus more on essential information, such as price, volume, and the delivery of components because it has found that linking the suppliers to a given components results in customers missing out on opportunities for savings by prioritizing supplier over available inventory and other essential factors.
Real-Time Transaction Information
Through anonymous auction, the company's platform captures changes of product offering prices and updates them in a timely manner. The company provides its price matching service via its online exchange platform, which connects SMEs with the upstream suppliers and distributors:
SMEs Customer Community: In the highly fragmented electronics manufacturing supply chain in China, SME electronics manufacturers often lack sufficient scale to secure timely access to authentic electronic components from brand-name suppliers, bargaining power to negotiate competitive purchase terms and efficiently manage the procurement process. The company's e-commerce platform provides an efficient channel for SME electronics manufacturers to access reliable and high-quality branded products. The company's economies of scale of the exchange platform attract suppliers to offer SMEs more competitive prices and terms. The company's sales and marketing team also conducts onsite promotion to increase its platform customers, continuously visiting SMEs to collect their demand and feedback on the trading of electronic components. The company also updates them with information of new products and technologies it received from the suppliers.
SMEs Supplier Community: In addition to helping SMEs purchase large volumes of products, the company provides additional benefits to suppliers through its integrated online platform. The company promotes their new products and new technologies through notifications on its online platform, as well as its onsite promotion. With timely reaction of the company's customers' demands and buying habits, its promotion efforts are more effective and able to reach more potential customers at a minimum cost. The company's fulfilment solution also supplements their after-sale services and reduces the after-sale costs. Furthermore, the company's marketplace platform allows SME suppliers to take advantage of its technology infrastructure and access its well-established customer community.
The platform also publishes the most recent transaction details on, including but not limited to component part numbers and product trading volume. The transaction information is published on the company's platform as references for future trades on its platform. The company has also developed a comprehensive collection of component specifications, design and application information from suppliers. This catalog enables customers to screen, compare and cross-reference components efficiently.
The company's platform accumulates more than 25 million stock-keeping units (SKUs) in multiple electronic industry subdivisions. Because of the information and data the company provides, it has a substantial amount of visitors to its platform to review and collect product information and there are more than 25,000 SMEs registered as users on its platform so that they can post enquiries and/or offering information of their products, some of which become its customers and some become its suppliers.
SaaS Solutions
The company optimizes the management efficiency through its free software-as-a-service (SaaS) solutions. To the company's knowledge, most of the SME suppliers use Excel to manually manage their internal inventory, inquiry and quotes. Given that Excel is unable to achieve automatic synchronization of inventory information, order status, and operational data, it makes it harder to keep themselves updated on an order-by-order basis. To ease the pain of SMEs and bring them more control in the trading process, the company self-develops the SaaS solutions as customized software services and cloud services to support SMEs at different stages of transactions free of charge.
The company provides the SaaS suite services for customers on its e-commerce platform. The company's SaaS suite uses an enterprise-level multi-account architecture and organized grading management control to support the unlimited self-extension of its customers. As long as the company's customers have access to the internet connection, they will be able to enjoy the variety of application services available in its platform via computers or mobile devices anytime anywhere. Those services include Customer Relationship Management or CRM, Supplier Relationship Management or SRM, HR management, order management, warehouse management, Bill of Material (BOM) management, logistics management, import and export management, operation management, financial management, visual management, and report analysis. Based on the need of data analysis defined by the customers, the company's platform can further provide the customized information that meets their requirements and improve their internal management efficiency and decision-making. The company also provides modularized SaaS services, such as SaaS subscription model to meet the personalized needs of customers.
With the company's SaaS suite, its customers can save manpower, accumulate operation statistics, and improve the production management via informationization. The company's SaaS solutions allow its customers to significantly improve their operational efficiency by automatically synchronizing inventories, purchasing orders, pricing and other electronics related information directly. The company's customers can manage projects with full scale control, make stock purchase plan with full transparency, check order status at any time, finish custom clearance online, get delivery, as well as insurance coverage, build customer relationship and control account record.
The company's SaaS solution is embedded in its e-commerce platform and accessible to all its customers without additional charge, and it generates income primarily by facilitating B2B orders. With the efficient software delivery, data could be accessed from any device (computer, phone or tablet PC) with an Internet connection and web browser or through the company's mobile application.
Strategy
The key elements of the company's strategy are to continue to invest in its information engine to support its business; strengthen its technology capabilities and enrich its SaaS suite; further develop and expand its solutions on its e-commerce platform; and expand its marketing and sales by enhancing cooperation with suppliers and its services.
Customers
The company's customers are mainly small-medium electronic component buyers in Hong Kong and PRC.
Competition
The company's competitors include Avnet, Inc.; Mouser Electronics; Cogobuy Group PLC; ICKey (Shanghai) Internet Technology Co., Ltd.; Liexin.com; Yikuyi.com; Sunyur; fxiaoke.com; and Salesforce.
Intellectual Property Rights
The company's primary trademark portfolio consists of 20 registered trademarks and 1 intellectual property management system certification. The company owns 62 registered software copyrights. In addition to trademark and software protection, the company owns 16 domain names, including iczoomex.com.
Research and Development
For the year ended June 30, 2023, the company's research and development expenses were $437,261.
History
The company was founded in 2012. It was incorporated under the laws of the Cayman Islands in 2015. The company was formerly known as Horizon Business Intelligence Co., Limited and changed its name to ICZOOM Group Inc. in 2018.
