Analysis Of IT Distribution Channel Development

China is now at the stage of high-Speed development in economy and transformation in society, IT market increases with 30% higher speed each year than before. The emergence of the fast development and various newly arising industry of market caused the new transformation of IT distribution channels and retail supply chain .It should be in the outstanding position to research the tendency of its development.The IT distribution Channel of China had walked through the development process for 20 years and had created some successful local IT distribution business enterprise.They had experienced the fierce of the market; made the transformation and innovation to meet market's demands. And finally got the brilliant success in their career. It also developed the channel mode from the rough and simplified agency management under the buyer's market to classified and dedicated operational channel under the seller's market.Currently, traditional IT distribution channel could not meet the demands of the high-speed developing IT business enterprise, the advantage of the IT distribution channel is weakening gradually along with the market changing and variety for demands of the manufacturers. The product turns to be with the same quality, the market competition turns fierce, the competition among manufacturers and that between the manufacturer and distributors are getting more severe. The new arising marketing channel,direct selling and terminal channel of IT industry and consumption electronics product industry all bring the competition of market quota; The advanced experiences of operation and international financing channel of the international enterprise will impact on the domestic enterprises; the development process has already tended to be slow after several years'high-speed development. IT distributors should look for the appreciate path to break the bottleneck and get through it. Only by innovation and transformation, IT distributors could create the value and meet the commitment of the customers in the era of customer orientated, and find space of survival.This article analyzed the current saturation and the challenges that IT distributors faced to. Combined with Chinese IT distributors'history and characteristics , from the aspect of subdivided market and their separate growth, the IT manufacturers'strategy, the customers'requirements, The article try to induct the domestic companies to the future path of IT merchants.The strategy of"the customer orientated","Strengthening the channel"and "supply chain management"will guide the direction for IT distribution's transformation. By showing some instances of the strategy to greatly support the point of view, that three points should be the right direction for IT distributor to develop. The article is totally divided into 4 chapters:Chapter 1 mainly describe the IT distribution channel in China development processIt describes the business of Digital China, the leading enterprise in the IT distribution field, and extends to the over twenty years developing history. The IT distribution development was divided into three stages by this article. It gives the detail description of the characteristics of each stage, also together with the channel developments and management of Digital China.Chapter 2 analyze the challenges that IT distributor faced to Respective speaking:One: IT manufacturer do away with the hierarchical channel strategy.Two: Domestic IT merchants will compete with the foreign merchants with new channel mode.Three: The IT productivity is excess, the market growth is slow, price transparency brings the continuously descend of the profitsFour: Manufacturers'strategy and the increased scale of funds bring the deep pressure to distributorsFive: The living space of IT merchants is pushed under the diversification channel policy of manufacturers.Chapters 3 mainly describe the research of the future development of the IT distribution.Chapter 4 aiming at the challenge, the strategy made by Digital China including: Policy one: Business model reforming under the thought of customer orientate. Policy two: Strengthening the channel overlay, expanding the terminal channel Policy three: Becoming the manager of the supply chain between the manufacturers and the terminal (retailer)Some shortages and problems need of further research are put forward at the end of article too.