Reflections on the '2010 China Welding Industry Sales Forum'

        Looking back at 2009, the Welding 21st Century Network hosted the "First Welding Industry Dealers Forum" during the Tianjin Welding Expo. This event was initiated with the idea of doing more practical work for everyone. Although it was the first edition, the participation was quite substantial, mostly consisting of our long-time clients and friends. We are deeply grateful for their support. Everyone is usually very busy, so being able to gather together to share their career journeys and experiences was quite meaningful. This year, our platform continued to build on the enthusiasm of the attendees by inviting some thoughtful and like-minded dealers to gather in Nanjing again. In addition to old friends, there were also some new faces. Compared to the first forum, this one was more formal, larger in scale, and the topics discussed were more relevant to reality, prompting deep reflection. I observed that, besides the invited dealers, some manufacturers also actively participated and showed a high level of interest, which is worth reflecting on for industry dealers. The "Welding Industry Dealers Forum" aims to provide a platform and opportunity for communication, gathering everyone's wisdom to offer advice on the problems and difficulties faced in industry development; it aims to integrate industry resources to seek more cooperation opportunities between enterprises and explore more market potential; it aims to allow manufacturers and industry professionals to gain a deeper and more authentic understanding of dealers... The topics discussed at this forum can be broadly categorized into: (1) the relationship between manufacturers and dealers and the existing issues; (2) exploring the future development of dealers from their own brand building, business strategies, service concepts, etc.; (3) how the welding industry should respond to the impact of the hardware industry; (4) alliances among dealers; and so on. In the current welding industry, a significant portion of dealers start as individuals or in partnership with relatives and friends, generally at a lower starting point, operating small stores and being self-sufficient. However, agents who have been culturally influenced, possess their own ideas, and keep pace with the times are generally seeking more and better development opportunities, hoping to grow stronger; no one willingly accepts being part of a so-called disadvantaged group. The concept of "disadvantaged groups" exists in various industries, not just in welding, but it is a relative concept. Some dealers may feel they are not strong enough and are chosen by manufacturers, feeling they are in a disadvantaged position; while others who perform well can choose better manufacturers, which is a market rule and a survival principle. Those who claim to be in a disadvantaged position mainly attribute it to several factors: their brand is not their own, they are making "wedding dresses" for manufacturers; not every dealer can obtain brand agency rights; whether dealers who obtain brand agency rights can receive "fair" treatment, etc. These are some objective issues that exist in reality, so to shed the label of "disadvantaged group," it mainly depends on self-awareness and a shift in mindset. The relationship between manufacturers and dealers has always been a sensitive and concerning topic. Some people vividly liken the two parties to a marital relationship, sharing honor and disgrace; others compare manufacturers and dealers to a symbiotic relationship, where neither can do without the other. In fact, the form is not important; what matters is how to maintain a long-term stable cooperative relationship and progress together. The attention this forum received from so many manufacturers is a positive sign, indicating that these manufacturers care about the development of dealers and are willing to hear their voices, thus further understanding themselves and enabling more harmonious development between them. Secondly, the importance of dealers to manufacturers is evident; the purpose of the products produced by manufacturers is to sell to customers. Currently, the industry generally replaces the original direct sales model with an agency model, and dealers play a crucial role as the terminal link in the sales of manufacturers' products. Thirdly, manufacturers want to use this platform to understand and find suitable dealers, seeking those with certain ideas and development potential. This is something we learned from visiting some manufacturers, especially when manufacturers are developing new regional agents, they place more emphasis on their ideas and intrinsic qualities. With the continuous application of modern technological means, many enterprises are developing rapidly. Some manufacturers and dealers involved in online marketing have tasted success, and their mindsets are slowly changing. Consequently, traditional marketing models in the industry have been impacted, with noticeable changes in exhibition marketing, direct sales by manufacturers, etc. When the differences in product structure and performance are not significant, the return on substantial investments in manpower, material resources, and financial resources is decreasing. Online promotion is also a topic of discussion, which should be categorized under business strategies for enterprise development. The internet emphasizes resource sharing, allowing access to valuable information at a low cost and without leaving home. However, online promotion does not guarantee maximum returns simply through simple investment; this requires a proper mindset. To leverage the internet for enterprise development, it requires not only financial investment but also human effort to actively utilize online resources to seek opportunities. Secondly, there is a need for awareness regarding the return on investment; the effects of online promotion are not immediate and require a process of external recognition and understanding. Building a brand also requires a long-term systematic construction process. Thirdly, some dealers still hold the belief that since manufacturers are already promoting, dealers do not need to, and that customers have regional limitations, etc. This mindset stems from not positioning themselves correctly, viewing themselves merely as a link between manufacturers and consumers, which makes it difficult to grow. To achieve liberation, a change in mindset is necessary. Although dealers sell manufacturers' products, they are also independent legal entities with their own corporate culture. Therefore, it is more important to promote their own corporate image and brand. If customers recognize your enterprise, who you sell products for is not the most important thing. In the face of the impact of the hardware industry on the welding industry, the key lies in how to view this issue. There are both challenges and opportunities. The hardware industry has some aspects worth learning from for the welding industry, such as how the hardware industry breaks through difficulties during downturns; how hardware dealers unite for mutual development, etc. These are lessons the welding industry needs to learn and discuss. The welding dealer alliance has both advocates and opponents, as this model indeed has certain difficulties and requires more detailed and thoughtful exploration. A single drop cannot form a sea, and a single tree cannot form a forest. Individual wisdom and strength are limited, while collective wisdom and strength are infinite, making resource integration particularly important. It is better to unite than to fight alone, leveraging each other's strengths. For example, the e-commerce project discussed is something we at Welding 21st Century Network are actively pursuing, which fully utilizes modern technological means to gather everyone's strength and wisdom, complementing each other's advantages and helping one another, thereby promoting the development of the welding industry. The "Welding Industry Dealers Forum" aims to bring together a group of individuals with different wisdom and ideas to spark discussions, allowing everyone to extract the essence, absorb nutrients, find suitable methods, and break through difficulties, thereby enhancing the status and influence of dealers in the industry. At the same time, we hope that such forums can inject new energy into industry development and play a role in promoting progress. The true role of the "forum" should be reflected in the actions taken by everyone after returning. We hope that the "China Welding Industry Dealers Forum" can carry more advanced concepts and wisdom, bringing new thoughts and hopes to our industry.