"Vanity" is updated: Huawei's distribution market is booming

In the development history of China's ICT market, distribution business is the "last mile" for corporate products and services to reach end users, and is also one of the barometers of the success or failure of manufacturers' overall business.

As the wave of digital transformation sweeps across all industries, the digital transformation process of small and medium-sized enterprises is also accelerating . According to the "Research Report on the Development of Digital Transformation of Small and Medium-sized Enterprises", small and medium-sized enterprises account for 99 % of the total number of enterprises in the country . At the same time, the average proportion of investment in digital transformation by small and medium-sized enterprises in annual revenue is 29% . As Wu Zhenhua, director of the Distribution Sales Department of Huawei's China Government Business, said, there is great potential in the distribution market.

With its deep accumulation of digital and ICT technologies and a vast network of partners , Huawei has helped its Chinese partners in the distribution market grow SO (sell-out) by 20% in the past year, and channel inventory has dropped significantly by 2.2 billion. Huawei Kunling has launched 92 new products and its first online trading platform, and has developed more than 2,900 high-quality elite distribution partners...

Since the transformation was launched last year, Huawei's distribution market is booming .

A healthy and orderly distribution business partner system is the foundation for prosperity

" We focus on distributors, center on engineering companies, and take products as the king to build a healthy and orderly distribution partner system. "

Wu Zhenhua, Director of Huawei China Government and Enterprise Distribution Sales Department

At the Huawei Partner Conference, Wu Zhenhua emphasized the overall strategy of the distribution market. In the partner + Huawei system, Huawei not only provides excellent product portfolios and marketable products, but also spares no effort in establishing a healthy distribution system to match them.

In the past year, Huawei has implemented a series of reform measures in the distribution market, aiming to promote the transformation of the business model from traditional shipment (SI) to actual sales (SO). This transformation has significantly improved the efficiency and responsiveness of the distribution channels. At the same time, Huawei has optimized the structure of gold medal distributors, vigorously developed distribution elites, strictly controlled the market order, and meticulously managed product supply to ensure the stability and efficiency of the supply chain.

The effects of these changes are already evident. In 2023, the channel inventory of Huawei's distribution partners also dropped significantly by 2.2 billion , while the average actual sales achieved rapid growth. The number of distribution elites and the amount of goods picked up also increased several times, and the number of distribution orders has been successfully transformed from the previous large-order, large-scale inventory model to a small-order, high-turnover real distribution model. These changes not only improved the efficiency of the distribution business, but also brought tangible profit growth to distribution partners.

"Working with hundreds of gold medals, serving tens of thousands of elites, and reaching tens of millions of users" is Huawei's ambition in the distribution market. Through the establishment of a healthy and orderly distribution partner system , Huawei is creating a new era of vitality, symbiosis and win-win with its distribution partners.

Huawei Kunling is making steady progress by introducing new ideas

Huawei Kunling, as an important sub-brand of Huawei for the small and medium-sized enterprise market, has become the key factor for the success of Huawei's distribution business with its rich product line and accurate market positioning.

As a product targeting the distribution market, Huawei Kunling's design has always revolved around the "six easy" principle, namely easy to buy, easy to sell, easy to install, easy to maintain, easy to learn, and easy to use. The implementation of this principle has brought into play the combined advantages of multiple products, involving scenario-based solutions for the distribution market, which can meet the scenario-based needs of customers and partners in a one-stop manner and reduce the difficulty of sales supply and services .

Since its release, the "Huawei Kunling" product line has covered multiple fields such as data communication, SOHO, data communication network security, data storage, intelligent collaboration, optical network , industry perception, computing (Kunpeng, N Teng), etc., forming a comprehensive and diversified product matrix. From basic network equipment to the latest cutting-edge technology solutions such as cloud computing, big data, and artificial intelligence, it ensures that small and medium-sized enterprises can obtain all-round technical support in the process of digital transformation. Last year, 92 new Huawei Kunling products were launched in the distribution market . At the same time, Wu Zhenhua revealed that in 2024 as a whole, Huawei Kunling will continue to launch 110+ new products .

In addition, in terms of market demand docking, Huawei Kunling has established an efficient feedback mechanism through close cooperation with distribution partners. As an important force on the market front, distribution partners’ insights into customer needs provide valuable information for Huawei’s product iteration and optimization.

Create hundreds of millions of business opportunities together, "research, operation, supply, marketing, service and management" fully motivates partners

The success of the distribution business is always inseparable from the close cooperation and common growth of partners.

Huawei is well aware of this, and therefore has invested a lot of energy and resources in building distribution partnerships and incentive mechanisms.

The "Wan+Huawei Kunling Elite Program" officially launched at this conference is an important part of it. The program aims to help distribution elite partners improve their capabilities and enhance their market competitiveness by providing comprehensive support, including product development, marketing, sales development, service guarantee and management optimization.

• In terms of research and development, Huawei Kunling will launch more than 110 new products and provide systematic empowerment;
• In terms of supply, Huawei Kunling promised that the spot market accounts for 90%, and it is predicted that the gold medal will arrive in 7 days, and the gold medal will supply the elite locally at the fastest speed;
• In terms of marketing, Huawei Kunling will provide marketing materials/tools + 10 million yuan of elite marketing expenses, and Gold Medal will provide lecturers and demonstration material support for the elite salon;
• In terms of sales, Huawei Kunling will invest more than 400 distribution specialists in cities and provide more than 20 million yuan per year to encourage and support elites. Gold medals will be responsible for assisting elite expansion, such as pre-sales technical support, order placement, etc.
• In terms of services, Huawei Kunling will provide a 46+ person 400 distribution exclusive team, Huawei Kunling APP startup/operation and maintenance tools, intelligent customer service, spare parts. Gold Medal will guarantee elite installation and after-sales service support.
• In terms of management, Huawei Kunling will continue to manage the market order and stabilize prices. Jinpai will also assist in managing the order and matching purchase, sales and inventory.

In addition, Wu Zhenhua also revealed that the incentive policy of the distribution market will also be structured and standardized, so that partners can predict the incentives . The next step is to continue to increase investment in brand building , and help our partners carry out community marketing, operations, short video empowerment training, etc. through business district advertising , stores and salons , and build a complete exclusive distribution service system. " Huawei Kunling will work with partners to create hundreds of millions of business opportunities with more marketable products, a more down-to-earth network, more effective incentives, richer brand investment, and a more complete service system. "

Conclusion

From product innovation to market strategy, from partnership to incentive mechanism, every step taken by Huawei reflects its deep understanding and long-term planning for the distribution market. By deepening the transformation of its distribution business, Huawei not only promotes the growth of its own business, but also provides a reference paradigm for the distribution model of the entire ICT industry.