[Shanghai, China October 11, 2018] On October 11, the second day of HUAWEI CONNECT 2018, the first Huawei Global Distributor Forum took place in Shanghai. Organized by Huawei Enterprise, the forum was attended by approximately 150 guests from more than 70 distributor companies in 45 countries. They came to discuss how they and Huawei could better support each other and succeed together.
Distributor Forum Full Vision
This was the first time Huawei Enterprise has brought together its global distributors at a single event. Huawei Enterprise's business through distributors has grown strongly. In the last five years, distributor sales have increased at 45% per year, and now account for 72% of Huawei Enterprise's channel revenues. In Huawei's channel structure, distributors play an indispensable role providing logistics, financing, services, sales, and branding support.
In order to grow its distributor business in a healthier and more sustainable manner, Huawei set up a dedicated Distribution Business Department in 2017, and developed a strategy called "Bringing Together Leading Players". It is redesigning its global distributor network, limiting the number of distributors in each country to ensure a good business environment for its partners. Huawei carefully manages distributor profit margins and offers rebates to distributors to help ensure their profitability. The company is also improving its IT systems and processes. Better systems and channels for communication are making it easier for Huawei and its distributors to do business with each other. Since last year, Huawei has phased out many underperforming distributors, and works more closely with leading partners around the world, creating an increasingly stable and sound global distributor network.
In his opening remarks, Huawei Enterprise BG Vice President Ma Yue said, "Huawei Enterprise's huge breakthroughs and sustained fast growth in so many areas would not be possible without the help of our partners. To better address the challenges of this new ICT era, we hope that you will make two changes. First, we hope you will be more than just channels for reselling. We hope that you will also provide value-added services, and become solution providers. Second, we hope you will move beyond traditional IT sectors and into cloud computing, big data, IoT, and other emerging sectors. Of course, we'll offer strong support to help you achieve these two shifts. We will be offering new policies to help you develop new capabilities, train your people, co-market solutions, and providing initial financing."
Mr. Ma Yue Delivering Opening Speech
Chen Yue, head of the Huawei Enterprise's Distribution Business Department, clarified the global distributor strategy. Huawei has developed a more global structure for its distributor network since 2017. Going forward, Huawei will be more cautious when selecting distributors, will bring in high-quality distributors, and will help them expand their capacity. At the same time, Huawei will prioritize profitability for its partners. The company will ensure shared success by improving its channel policies and streamlining business processes. Huawei also expects to address market challenges alongside its partners through digital transformation.
Mr. Chen Yue Introducing EBG Distributor Strategy
Another speaker at the forum was Han Zhimin, vice president of Digital China Group, one of Huawei's global distributors. He talked about how his company has partnered with Huawei to achieve fast growth, and how the two companies have supported each other to find the best partnership model. To date, Huawei and Digital China have generated sales of nearly ten billion renminbi.
Mr. Han Zhimin Introducing Digital China Cooperation with Huawei
Huawei will continue to invest in its channel partners, offer more support, and embrace new challenges in the market with them. Together, Huawei and its partners hope to transform their services and succeed together.
