Caishen - Electronics development strategy 2023

1.

Caishen – Electronics
development strategy
2023
1

2.

Agenda
1
Highlights 2023
2
Organizational changes in Caishen company 2022
3
Performance of UPUN 2022 and plans for 2023
4
Marketing shares research
5
Market development
6
Exhibitions in 2023
7
Product portfolio support – new product development status
8
Purchasing from UPUN forecast 2023
Required Term for reaching planning results
2

3.

HIGHLIGHTS 2022
• SALES growth x3 times Year on Year
• New organizational structure with focus on key customer, regions and segments (sales representatives in
Ural, Volga and Siberia region)
• New customer service for better customer experience
• New purchasing and logistics department
• New warehouse with better processes and experience working with Spare Parts (General Motors)
• New big customer accounts (Key Accounts) – Gazprom, Transneft (partly) , RussianRailways (partly)
• New customers >200 in new segments
• New distribution network with big sales volumes
• All business processes has been reviewed and improved, new processes established
• New ERP system have been implemented
3

4.

Organizational Changes: New structure for new achievements
General Manager
Olga Konovalova
Assistant
Olesya Lukach
Sales & Marketing
Denis Belokon
KAM (Gazprom,
Neiron, etc)
NEW
Sales Center,
Volga, Ural
regions
NEW
Sales North-West,
Siberia, South
Regions
NEW
Product manager Terminals
Andrei Ikrin
• Since Nov 2022
• 12 years in B2B
• Experience Wieland Electric and
Phoenix Contact (11 years)
Purchasing &
Logitsics
Operations
Oleg Bobulev
Customer Service
NEW
Finance
Inga Smorodkina
NEW Lidia Upadysheva
Product
Management
Terminals
NEW
HR
Oxana Andreeva
Product
Management
Relays
NEW
Product Manager Relays & other electronics
Sergei Baburin
• Since june 2022
• 12 years in B2B
• Experience 9 years
Phoenix Contact
4

5.

Caishen started sails of relay modules in 2022 and reached impressive result
(In spite of high price level)
UPUN Products Sales to customers , mio RUB
Key Factors
Mio RUB
160
140
120
X3,75
100
80
60
40
20
0
2022
2023Forecast
Forecast
• New professional sales team
• Sales efficiency growth
• New big customer accounts
• EU sanctions because of conflict
with Ukraine which stopped
European producers deliveries and
operations
• UPUN relay modules are
compatible with the product line
PLC from Phoenix Contact (very
popular at Russian market)
Actual
5

6.

TAM (Total Addressable Market) of electrics and electronic components
market - RUSSIA
Electromechanics is the market where
UPUN is presented.
Electromechanics:
• PCB terminals/connector
• DIN rail terminals
• Relays
• Cables.
Main driving force
The Niche where UPUN sales - Electromechanics = 623 mio USD
6

7.

SOM (Serviceable Obtainable Market) of industrial relay modules - RUSSIA
Estimated market size ~5,8 billion RUB
(~83 mio USD) - 2022
Estimated market size ~6 billion RUB
(~85,7 mio USD) - 2021
Finder
12,5%
Finder
20,7%
PxC
8,3%
Other
40,3%
Other
42,2%
Omron
8,3%
Tyco
6,7%
Klemsan
0,7%
Siemens SE Relpol ABB Wago WM
2,5% 2,8% 2,8% 2,9% 3,0% 3,3%
Hongfa
5,8%
Hongfa
12,1%
Russian
Manufacters
6,9%
UPUN (TIS)
0,7%
Degson
0,9%
Tyco
0,9%
Klemsan
6,0%
Relpol
1,0%
Omron
1,4%
PxC
1,7%
Shenler
5,5%
Finder stays the leader of relay market (and increase it’s share greatly) in spire of sanction – shipment at Russia still available.
Chinese manufactures increased their shares greatly due to unexpected leaving of European vendors.
7
Russian manufactures also makes activity.

8.

SOM (Serviceable Obtainable Market) of industrial Power Supplies RUSSIA
Estimated market size ~4,5 billion RUB (~64,3 mio
USD) - 2021
Degson
0,2%
TDK-Lambda
0,5%
Rockwell
0,5%
Siemens
20,0%
Other
20,0%
Allen Bredley
0,8%
Estimated market size ~4,4 billion RUB (~63 mio
USD) - 2022
PULS
0,5%
Wago
0,9%
PULS
0,9%
Other
22,2%
MeanWell
31,8%
Weidmuller
0,6%
Omron
0,7%
Delta
0,9%
MeanWell
15,1%
Weidmuller
3,7%
Delta
0,9%
Schneider
1,8%
TDK-Lambda
4,5%
Schneider
5,0%
Omron
6,3%
TRACO
10,3%
PxC
11,1%
TRACO
2,3%
Siemens
PxC
3,4%
3,4%
Mornsan
11,4%
KV-Systems
20,5%
Meanwell took a big piece of cake due to availability, low price level and normal quality.
KV-Systems is the biggest Russian manufactor of PS. Took participants in many government projects and orders.
Mornsan used price damping strategy successfully.
8

9.

SOM (Serviceable Obtainable Market) of industrial Power Supplies and
other related equipment - RUSSIA
Estimated market size ~6,4 billion RUB (~91 mio USD)
DC/DC converters; 230
UPS; 1 300
Power Supplies; 4 400
Other relevant equipment ;
1 980
Redandency modules; 450
Besides market of industry power supplies there is a big market of related equipment: DC/DC convertors, Uninterruptable
9
Power Supplies (UPS) and Redundancy modules. UPS part is the most interesting.

10.

DIN-rail terminals market, mio RUB / USD beginning 2022
Marking
Terminals
A lot of big customers still use PxC
thermotransfer printers, but the marking
plates are in short supply on the market.
There is a very good opportunity to use
deficit of marking plate to take part of
marking market.
31 Mio $
83.5 Mio $
Need to adapt current marking plates for
thermotransfer printing with PxC printers.
There is a limited time of action – some
Russian companies are working in same
direction.
10

11.

Competition at the beginning of 2023 relay modules market
Trends 2023
- European manufacturers lost up to 80% of the market, but
still quepment available on the market for higher prices.
- FINDER got huge piece of cake, due to high-quality product,
low price level, strong brand (very famous on Russian
market), big nomenclature and well-established logistics
(still some problems because of huge demand).
- Chinese manufactures (such as Hongfa, Shenler) increased
there shares greatly due to leaving of European players
from Russian market.
- Russian manufactures are also increased shares due to
same reason.
- Klemsan stay on the Russian market in spite of European
sanction politics. It is very successful at terminal blocks’
market and got big share at relays’ market.
11

12.

Price level relay modules on the market
Key Factors
Price comparison, RU market
• Our strategy bases on stock availability
• Caishen Distribution has wide customer base ,
customers demand one window service (Terminals +
Relays and other electronics)
• UPUN relay modules have high price level on the
market. There is no justification of such high price in
comparison with the competitors.
1CO 24 В DC
1 CO 230 В UC
UPUN м.опт
2 CO 24 В DC
Finder
Klemsan
2 CO 230 В UC
PxC
1 COHC 24 DC
Shenler
CAISHEN (UPUN) CURRENT PRICE LEVEL NEED TO BE REVIEWED
*market data based on offers for medium and small customers
12

13.

CAISHEN plans and strategic initiatives in 2023
- Gain 2,5% of relay modules’ market
- Sales growth by 150%
- Entering a new market – marking
- Strengthen positions in industries (Oil and Gas, Railway, Emobility) with focusing and introduction of a new devices
in portfolio
- Increase brand awareness
- Participation in 5 specialized exhibitions
- Product trainings for our distributors
- Reduce delivery times
- Use new products for achieving results
13

14.

Agenda
1
Highlights 2023
2
Organizational changes in Caishen company 2022
3
Performance of UPUN 2022 and plans for 2023
4
New customer segments development
5
Market development
6
Exhibitions in 2023
7
Product portfolio support – new product development status
8
Purchasing from UPUN forecast 2023
Required Term for reaching planning results
14

15.

Caishen is planing to participate at International Forum “Expoelectronika”
on April 11th (Moscow)
ACTIVITIES OF VISITORS EXPOELECTRONICA
AND ELECTRONTECHEXPO
- Electronics manufacturing – 4089
- Research and Development
- Wholesale and retail of electronic
components
- Electrical engineering
- Design and development of software and
electronic products
11-13 April 2023
- Production of electronic components
- Design
- Service/repair
- Contract manufacturing
15

16.

Caishen is planing to participate at International Forum “Electric
networks” on 21th November (Moscow)
Exhibitors are:
- manufacturers and suppliers of
power
- manufacturers and suppliers of
automation systems
- electricity distribution companies
- manufacturers of relay protection
and automation systems
- Integrators of automated control
system
16

17.

Caishen is planing to participate at International Forum “Electra 2023” on
June 6th (Moscow)
Statistics:
- 12 000 m2
- 159 companies
from 9 countries
- 8000 visitors
- 70 new
companies
17

18.

Caishen is planing to participate at International Forum “Relavexpo 2023”
on Aprin 20th (Cheboksary)
The exhibition is dedicated to relay
protection. Members:
- EKRA (Relay protection)
- NPP Bresler (Relay protection)
- Elara (Railway)
- RUSHYDRO (Power generation)
- FSK EAS (Energy transfer)
18

19.

Caishen is planing to participate at International Forum “Prodvizhenie
2023” on August 26th (Moscow)
Railway industries presented at the
exhibition:
- Electric transport
- Engineering
- Railway infrastructure
- Rolling stock
- System integrators
- Transport equipment
- Communication system
- Transport security
19

20.

Caishen is planing to create giveaways
Souvenir products (for exhibitions and
customer visits) :
- Umbrellas
- Mugs
- Pens
- Diaries
20

21.

Planned Marketing expenses 2023
USD
Catalogs
21 500
Samples
2 850
Dinners with customers
2 150
Exhibition
86 000
Giveaways
4 300
TOTAL :
116 800
21

22.

What we need in 2023 ASAP? URGENT and IMPORTANT
Marking solution
- Phoenix Contact RUS LLC customers still have more than
150 Thermomark Card printers and 10-15 Bluemark ID
printers (10,000 nameplates per hour)
- The market is experiencing an acute shortage of marking
and printing devices
- Solution: Printer + marking not yet offered by any of the
terminal manufacturers
THERMOMARK CARD 2.0
There is There is a very good opportunity to use deficit of
marking plate to take part of marking market.
Need to adapt current marking plates for thermotransfer
printing with PxC printers.
There is a limited time of action – some Russian companies
are working in same direction.
22

23.

What we need in 2023? Medium priority
Post sales services – Warranty obligations
IT is needed to form reclamation procedure!
Customers want to get quick and skilled support in case
of any problems.
Also the customers want to get quick and free
replacement of equipment in case of manufacturing
defects
High quality service must be provided!
23

24.

What we need in 2023?
New devices development:
- SEN version in priority
- Push-in modification (not economical!)
- UCR complete portfolio (with 4CO modification)
- intrinsically safe barriers and analog converters
(Certification in process)
24

25.

Plans 2023
• SALES growth x3 times Year on Year
• New organizational structure with focus on key customer, regions and segments (sales representatives in
Ural, Volga and Siberia region)
• New customer service for better customer experience
• New purchasing and logistics department
• New warehouse with better processes and experience working with Spare Parts (General Motors)
• Webinars for key customers
• Expending marketing materials (presentations, brochures, video trainings and so on)
25

26.

Agenda
1
Highlights 2023
2
Organizational changes in Caishen company 2022
3
Performance of UPUN 2022 and plans for 2023
4
New customer segments development
5
Market development
6
Exhibitions in 2023
7
Product portfolio support – new product development status
8
Purchasing UPUN forecast 2023
Required Term for reaching planning results
26

27.

Caishen have good result of sales in 2022 and plan to grow in 2023 more
than 3,5 times
Caishen Purchasing from UPUN year on year , k USD
Thousands USD
2500
2000
1500
1000
500
0
2022
2023Forecast
Forecast
Actual
To succeed the growth we need UPUN to support us
27

28.

To reach planning values CAISHEN need support from UPUN
Main points:
#
Required Term
Why
Expected result
1
Price discount 30%
Well established market by
European suppliers,
Current price levels are on
customers books
Get x3 times volumes
2
Credit time 90-180 days
End Customers requires credit
terms
Get share in customers’ business =
bigger sales volumes
3
Exclusive distribution on the territory of the
Russian Federation
Protection of project deals and
brand development
Participation in big projects, strong
brand, increase in sales
4
Special prices for global customers (like
OTIS, GAZPROM, Yokogawa, etc)
Long term contracts with big
accounts
bigger sales volumes for several
years ahead
5
Marketing support
- Free samples of relays
- Catalogs printing compensation
- Exhibitions compensation
Promotion for new customers
bigger sales volumes
6
Stock at UPUN
Customers cannot wait 6-8 weeks
(production + delivery as EU
suppliers promised 2-3 weeks)
bigger sales volumes from first
days
28