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Specialised in the development and production of aluminium and aluminium alloy welding wires
Why are welding material distributors unwilling to代理小品牌? How to identify the 'dark horse' among small brands is the key to profitability.
Release time:
2022-04-08
In the welding materials industry, the brand levels are distinct, and there is a significant difference in brand scale.
In the welding materials industry, various brands are distinctly categorized, and there is a significant difference in brand scale. Small brands may not sound as glamorous as large brands. However, when it comes to development, small brands may not necessarily be inferior to large brands. Both large and small distributors should not underestimate these small welding material brands. The editor of the welding interconnection platform will discuss how distributors should view small brands.
Large distributors are unwilling to represent small brands.
Large distributors are those who have strong strength and large scale in the market, possessing high visibility and strong influence within the industry circle. Due to their early entry into the industry, rapid growth, or strong capabilities, they often have advanced business philosophies, possess their own advantageous brand products, and have the conditions, strength, and ability to control downstream customers.
Firstly, they have become 'key figures' in this market and are well-matched with the manufacturers they cooperate with; representing small brands would affect their own brand image.
Secondly, small brands are limited by their own conditions and find it difficult to grow strong, lacking influence among the products they represent.
Thirdly, operating small brands is challenging and labor-intensive; a slight misstep can lead to significant losses.
Large distributors should pay attention to small brands.
Large distributors representing small brands is necessary for further development, which can be reflected in several aspects.
The need for profit.
A considerable number of large distributors are taking on more and more large brands with increasing sales volume; however, the accompanying funds and costs are also rising, while profit margins are shrinking. Therefore, low-cost high-profit small brands are not only a necessity for profit but also a need for their operational model transformation.
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