Text/Yu Yueming
The ceramic industry well-known comprehensive building materials distribution group - Singapore Hafary Group , founded in 1980, and listed in Singapore in 2009, is the leading enterprise in the Building Materials Industry and Tile Industry in Singapore, and the sales of tiles account for more than 70% of the national tile market in Singapore.
However, who would have thought that the development of Hefali in the first 20 years was actually unremarkable, not only failing to rank in the Singapore domestic market, but even in the poor operation around 2000 (affected by the Asian financial crisis in 1997).
In 2000, Low See Ching (hereinafter referred to as his English name Eric), who graduated from Nanyang Technological University in Singapore for only one year, was commissioned to take over the business founded by his father and open the road of the Hop Fat Lee Group. After Eric took over the Hefali Group, he carried out a series of reforms, not only knowing and optimizing the global supply chain system, but also playing several classic business battles that were enough to enter the business textbook. A series of measures quickly helped Hefali reverse the decline, expand the local market at the same time, and establish a tall brand image of Hefali Group. So much so that later the Singapore ceramic market popular a sentence: "If you can't find a good product in Hefali, then there may be no good product in the industry." ”
Here's a classic example of a business battle that's widely celebrated in Singapore:
Shortly after taking over the family business, Eric carefully selected a batch of high-quality and exquisitely designed tile products in China to sell back to Singapore, which was loved by the local market, consumers and designers. But then a company ranked high in Singapore also saw the business opportunity, directly in China snapped up the same products back to new sales, but also said to the outside world: Hefali has these products, we floated a 10% discount promotion.
Readers, how do you deal with such a situation?
Eric's approach at the time was: the price of all these products increased by 10%! Then the 20% difference is all returned to the customer's service and the brand building of Hefali. At that time, competitors plundered a large number of orders at cheap prices, resulting in logistics faults (Singapore logistics is extremely expensive), shipments could not keep up with the normal date delivery, and Hefali provided 24-hour arrival service, logistics and services were well arranged.
The effect of Hefali putting 20% of the price difference on the service was immediate, and under this circumstance, it not only recovered the loss of customers, but also won the respect and recognition of the market, and also added many important customer resources. There are many similar business war cases, such as when the market is good, the marketing expense budget of Hefali sales is the lowest in the industry, and when the market is not good and peers begin to cut marketing expenses, Hefali does the opposite, allocating large marketing budgets to business and sales. Due to the length of the article, I will not list them here.
After several years of development, Eric not only helped Hefali counterattack the listing and became the largest integrated building materials distribution group in Singapore, but also co-founded another real estate company with other investors: Oxley Holdings. In 2010, "Dark Horse" Howley Real Estate was listed in Singapore, and Eric became the head of the two major listed companies.
In 2017, under the matchmaking of Chen Zaifeng, general manager of Hefali (China), Eric Huiyan invested in Wei Beizan, senior product manager of the ceramic industry, and founded the Elimont brand. Today, the Ellimont brand is like a dark horse, rising against the trend in the era of the epidemic. The "Edmont phenomenon" has thus aroused the attention of the industry.
What kind of magic does Eric have? From a college student who graduated less than a year ago to a business legend who helped Hefali successfully counterattack and promote the listing of two companies, what was the reason for investing in Wei Beizan to create the Edmont brand?
Through the introduction of Chen Zaifeng, general manager of Hefali (China), and Wei Beizan, chief product officer of Ellimont, the author successfully connected with this Singaporean business legend Eric and conducted an in-depth interview with him.
Liu Shijin Eric, head of Singapore's Hefali Group
The people who participated in this video interview were:
Eric Liu, Head of Singapore Hefali Group
Ellimont Chief Product Officer Banson
General Manager, Hefali (China), Singapore, Chan Jae Fung (Island)
General Manager, International Trade Division, Ellimont, Zhou Liangfeng (Doreen)
General Manager, Brand Strategy Center, Ellimont Jason
Chief Operating Officer of Ceramic Information Yu Yueming (Michael)
Before this interview, the author made a long preparation, because the content of this interview is worth careful consideration and reading by readers and friends.
It's easy to be calculated
It's hard to step back and think about everything
Yu Yueming
Yu Yueming: I am very pleased that you can accept our interview today. This is not a simple interview, it is also a good learning opportunity for me personally, and I hope to bring new vision and inspiration to the Chinese ceramic industry.
I've heard a lot about you from Island and Banson before, and you're an idol in their minds. As far as I know, around 2000, the Hefali Group was in poor operating condition, and you were ordered to take over the family business. What was your mental journey like at the time? How did you ultimately make this choice?
Eric: I was very young, just graduating a year ago. At that time, I didn't think much about taking over the business, after all, it was my own business. I was just thinking that if I could turn the situation around, of course, it would be good, and even if it really didn't work, there wouldn't be much to lose. Before taking over the business, I had been studying in school, and although I had good grades, I knew nothing about tile sales. But I have a belief: if there is nothing that cannot be done, it depends on whether there is a heart to do it.
I think there is nothing that cannot be challenged, as long as you think calmly and calmly think through the operation chain and operating logic of the entire business, you will eventually succeed and achieve the set goals. Especially when they were young, the newborn calves were not afraid of tigers, had strong fighting power, and were willing to toss and turn. I don't think anything can overwhelm us, so although it was hard at that time, there was joy in suffering.
Yu Yueming: Every time you cross different obstacles, you will have a sense of accomplishment and form a spiritual motivation.
Eric: Yes, every experience is a valuable experience, and more important than success or failure is the experience gained from it. It is impossible for a person to have not experienced setbacks in his life. But what about experiencing setbacks? Such a life is more meaningful. We learn the lessons of setbacks, and through these lessons we continue to adjust and try, and eventually we will overcome the difficulties.
Yu Yueming: Just as every tear is a process of growth, you should often go to the gym to see your figure. Every heavy-duty workout tears up our muscle fibers to make our muscle tissue stronger. Whether it is unsatisfactory in life or business setbacks, it will make us stronger.
Eric: Yes, but don't take setbacks as a habit, the consequences are serious. (Laughs) I often tell the team that people who fail find reasons, and successful people find ways. So when my executives have problems, I will let them keep trying, unless they try until they can't think of any way to do it, and then ask for help, and definitely can't start with all kinds of excuses and find a way out for themselves.
Yu Yueming: When I was a child, my father often said to me: "It is as easy as calculating with your heart, but it is difficult to regress and think about everything." You have mastered a "Tao", and this "Tao" is the ultimate truth and logic of each industry. So in your opinion, as long as you do it with your heart, you can have good results.
Author's Thoughts:
Eric is easygoing and smiling, and has affinity. Although this is the first video call with him, it is like an old friend I have known for many years. Eric can be said to be a blank piece of paper before entering the industry, and he is in danger of being ordered to take over under adversity. With a sense of not being afraid to be afraid, and the belief that "if there is nothing that cannot be done, it depends on whether there is a heart to do it".
Carefully combing through, we will find that success is no accident. The teams of Hefali Group and Ellimont have such a momentum and the spirit of "but do good deeds, do not ask about the future":
When Wei Beizan first visited bologna in Italy in 1998, he planted the seeds of devoting himself to creating a diversified product structure system, and devoted himself to product research and development for decades; In order to excavate a good product, Chen Zaifeng has measured the ceramic production area of Guangdong with his feet for more than ten years. These are the embodiment of doing things with heart.
Therefore, although Eric only downplayed the creed of success, it was actually countless days and nights and details of practice behind it, and finally accumulated the results from quantitative change to qualitative change.
Management should be made good by people
Love and persistence are the cornerstones of success
Yu Yueming: It's a great way you've partnered with Island and Banson, and I can feel their passion for this business and their ability to solve problems in their respective fields, Island in the supply chain field, Banson in the product field are the top talents in the ceramics industry. Hefali Group's supply chain management covers a global scope, and you can find outstanding local leaders in various countries and regions to share your management approach?
Eric: First, the most important thing about management is to know people and make good use of them. Bosses should cultivate the strengths of talents and let them concentrate on playing in the areas they are good at, and they will become stronger and stronger in this field. We can't put him in a management position, and we can't ask him to do a good job of sales.
When these talents are found, they must be delegated. The boss can observe, but make the manager feel like he is also the boss. Take sales as an example, give them the right to exercise discounts, commissions, and marketing expenses within a certain range. Once they have these rights, customers will have confidence in them, and basically in this business, so this is our most basic management model.
Second, choose partners who recognize each other and share the same values. Especially abroad, if there is a mutual trust and a partner with the same values, the development of the cause will be more effective. For the international market, it will be very difficult if everything needs to be done by hand.
We have trusted partners like Island and Banson in China, and very strong partners in Vietnam who are indispensable to our group.
Left - Ellimont Chief Product Officer Wei Beizan (Banson), Right - Singapore Hefali (China) General Manager Chen Zaifeng (Island)
Finally, and most importantly, is to truly love the industry, and without that love, you will find it difficult to stick to it. So finding a partner should also see if he really loves the industry. You just said I'm Banson's idol, but they're actually My Idol, don't turn it upside down. [Laughs]
I heard about Banson's name in 2001, but he didn't know me at the time. (Laughs) In fact, around 2000 to 2005, China basically did not make good tile products. It is the persistence of some people in the later period that makes the Chinese factory truly exert its maximum potential.
To design a good tile product not only requires a lot of time to accumulate precipitation experience, but also requires great enthusiasm. Now China's ceramic tile products are making rapid progress, because there are many young generations who are willing to communicate and learn and love the industry, and they realize the importance of products earlier.
Banson should be the first person in China's ceramics industry to bring overseas antique brick awareness into China, and they have made outstanding contributions to promoting the development of China's ceramics industry. In the early days, China's tiles imitated Italy, in fact, many people did not imitate the essence, and some people even thought that they had imitated the essence and were complacent. Banson, on the other hand, strives for excellence, and all the details are not spared. Carefully learn, imitate with heart, and finally form their own style and system, and create original products that conform to the Chinese local market.
In this process, the prophets and foresights of this industry also began to be affected by it, and slowly China had a group of outstanding talents rising, and after such a process, China's pottery began to become stronger and stronger.
In fact, ceramics is a very difficult industry to do, compared to other industries I have invested in, the ceramic industry is particularly difficult.
Yu Yueming: "Ceramic Information" recently launched a special topic: "China's ceramic industry lacks a " Tao Lixi? "We found that some companies do not have money to do research and development and innovation, but make more money in other fields, but it is difficult to sink their hearts to develop in the ceramic sector."
Through the exchange just now, what I heard was a kind of love and persistence. You have been very successful in real estate, logistics and other sectors, and the ceramic industry is so difficult that you are still investing. You didn't give up on other industries because they made good money. This is the most precious place I have ever seen.
Eric: Love and persistence are important, and if you start a career from the perspective of making money, you won't necessarily be happy even if you succeed in the end. But if you do it with an idea, an interest, and a love of the industry, many things will be done with less, and they will gain everyone's respect and recognition.
Of course I have a lot of brothers and friends in this industry. I haven't been to China for a long time after the pandemic and I miss them a lot. We have been operating for so many years, and our current reputation in China is OK, because we have not messed up, and everyone recognizes us more. We have an annual meeting in Singapore every year and next year we welcome you to come and experience our team, our products and our style.
Author's Thoughts:
Eric's knowledge of people and the courage to decentralize power are important factors for the development of Hefali's global layout. In the article "Hefali (China) Chen Zaifeng: Empowering Ellimont to Build a Specially Selected Supply Chain Brand Management Platform", the author compares the story of Chen Zaifeng and Wei Beizan to a combined enhanced version of the combination of Sangu Maolu and Xiao Heyue chasing Han Xin. Eric's intellectuals are good at using and daring to delegate power like Liu Bei and Liu Bang, who are thirsty for talents, looking around for xiangliangcai, and he is only responsible for the overall direction. If it is not to know the good use of people and dare to delegate power, due to the interruption of the epidemic in recent years, Ellimont is likely to shrink its hands and feet and expand today's situation.
From the conversation, I can also hear Eric's sincere love for the industry, even if it is easier to make money investing in other areas, he still continues to invest in the ceramics industry. In addition, he emphasizes that Banson is his idol, so that the author should not reverse it, indicating that the values in his mind are not measured by material things. Banson has previously mentioned a similar point in an interview with this author: "We must not only harvest, but also consider the results from all levels, and profitability is only one of them." We will also consider the positioning of our product structure system, customer team, company operating model, our business values and other aspects. ”
Grace does not expect retribution
Gratitude does not forget to repay
Yu Yueming: I've heard about your business saga in interviews with Banson and Island before, and I've heard them say that you fought a few representative business battles. Previously, the market share of Hefali Group in the Singapore market was not high, but now it occupies more than 70% of the market share in the Singapore market, which must have many wonderful stories, and I hope to hear your sharing.
Eric: Everything starts from the needs and interests of customers, and thinks from the perspective of customers, there will be different results. If I were to give an example now, I wouldn't really remember for a moment and a half. Because every time we encounter a problem we need to think about different solutions, there is no fixed pattern.
In fact, I have always been very grateful to China's ceramic tile industry, because in large part of the reason why we were able to win the battle in our most difficult period was because of the strong support given to us by Chinese factories. Around 2000, the Singapore market was more repulsive to Chinese tiles, and many people still stuck in the old cognition. But that's when I found that Chinese tiles were on the rise. So we excavated excellent factories and brought good designs to them to explore together, which brought great value to both of us.
Later, we achieved success, and I have always taken this kindness to heart, so as long as my Chinese friends develop new products, regardless of whether there are sales or not, I will give them orders to express my encouragement and support to them.
At the same time, I hope that more and more talents in China will come out and build this industry better. This outbreak is a great opportunity for China. At present, the ceramic industry in Italy and Spain is not very good due to energy and other issues. My idea of working with Banson is simple, I hope that There will be a group of excellent talents in China who will insist on making good products. Of course, it is better to make money, and if we don't make money, we will stick to it for a long time, because I hope to see the day when Chinese ceramics stand on the top of the world.
Today I am very happy because there are a lot of good products in China now, and they are getting better and better, and I am proud of it. So I hope Banson will always stick to this path and never give up, and that direction is important. Because now many large-scale enterprises in China still focus on production capacity, like to chase market hotspots, and finally cause the phenomenon of oversupply.
Yu Yueming: This year's rise in raw materials and real estate thunderstorms have led to a sharp increase in pressure on large-scale enterprises. In the past, we had to pursue production capacity, and after experiencing this crisis, we must be heavy in the future. There is also the rise of a new generation of dynamic brands like Elimont, which will inspire our industry to move forward and bring thinking to our industry from some levels.
Eric: I think now the Chinese ceramic industry should really stop and think about it, whether it is a large factory or a small factory, it should think clearly about the current problems of the industry. Why do many companies that have been brilliant in the past go into decline? Does it confirm that the pursuit of production is ultimately the wrong direction?
Wait until you really think clearly, and then calmly think about which direction and which strategy is the most suitable for your own development, readjust or open up a new path. In fact, China's potential is much greater than Singapore's, because china's market is very large, and Singapore's market is very small. There are ten ways to do it in a huge market, and Singapore may only have one way to do it, and I think this is the place where China has the most opportunities.
Author's Thoughts:
Eric's investment in China's ceramics industry does not pursue profit returns, but hopes to see Chinese ceramics stand on the top of the world on the day, and will be proud of it. I think that if readers and friends see here, it will be a little touched, an overseas Chinese still looks forward to our industry every day to raise its eyebrows, should we fight for a breath ourselves?
Eric's relationship with china's ceramics industry and his original intention to invest in Edmont stem from his gratitude to China's ceramics. The author believes that it is precisely because Eric always has a grateful heart, so he usually gets more help in life and in the business field. People who are good at gratitude tend to be more popular and will be supported by more people. A yale university study shows that gratitude is a core competitiveness, and people with this ability tend to have more prospects.
Good products should go global
R&D should be long-term
Eric: Around 2018-2019, I was a little disappointed in the Chinese tile industry. Because I found that everyone is more willing to follow the trend of plagiarism, what products are easy to sell will copy what, homogenization is very serious, the market is very limited. In the short term, this can indeed seize a certain market and earn certain benefits, but if you look at the long term, you will find that the industry will go backwards, because everyone is avoiding risks, and no one is willing to spend money and energy to develop new products. Then the hard-won distance with Italy and Spain will be pulled away again.
Of course, this is my understanding of China before the epidemic, after the epidemic I have not been to China for three years to communicate, through the exchange just now, I see that China's ceramics industry is also beginning to change. I hope that through this interview, I would like to appeal to everyone to calm down and think about how to operate and develop our industry in this difficult period.
In fact, when we were operating in Singapore, we found a phenomenon: sometimes it seems to be taking more risks, and the road is much more difficult than that of competitors, but if you look at the long term, you will find that even if it will be difficult at the beginning, as long as you insist on it, you will achieve overtaking.
Therefore, in recent years, even under the epidemic environment, our development has remained at a good level, we have built a new exhibition hall, and we have a new layout. As the largest ceramic tile distributor in Singapore, we are not sorry for consumers in Singapore. Because we always bring the best products to consumers and bring the best material resources to designers.
We paid a great price for that. Italian tiles are not cheap, but we still have a lot of inventory and make frequent purchases in line with the frequency of new ceramic tile updates around the world. We continue to bring our latest products to the Singapore market, which places very high demands on cash flow.
Sometimes even if we know that some products cannot sell in quantities, we still spend money to prepare inventory, and even if only one customer needs such a product, we will do our best to meet their needs.
In the early days, our competitors were very simple and rude, observing what best-selling products we purchased, and then buying the same products back to the local market in Singapore to sell. Some opponents even take our best-selling products to the factory to imitate, the cost is 30% or even more than half cheaper than us.
At that time, their operation was very easy, and we were more difficult. But if you think about it in reverse, over time, customers will be more eager to find the latest products in our place for the first time; Second, as our product library is comprehensive and represents Singapore's latest trending market, designers and engineers alike prefer to deal with us. We provide them with valuable design inspiration and the best materials to help them land in their design space. So even though we chose a more difficult path, we chose to stick to it.
I also want to work with Banson to produce the best ceramic tile products to bring to consumers around the world, and then hope to stay ahead of the curve in the industry. My idea is a good product, it's not just selling well in China, it needs to have a way to go global and get buyers around the world.
So the products we develop are products that can really go global, which is the goal we pursue. When I was young, I often wondered: Why can't China make good bricks? I am eager to see China make good tile products, but also sincerely hope that the technology and design of Chinese tiles are favored by the world, I don't know if we can complete this mission.
Author's Thoughts:
In a previous interview with this author, Banson mentioned the important original goal of Ellimont: to become a Chinese brand worthy of respect by the world. This coincides with Eric's eagerness to expect that the technology and design of Chinese ceramic tiles will be favored by the world.
When encountering problems, you should think about the essence
Bosses should explore the market personally
Yu Yueming: I think this mission should be completed soon, especially after experiencing this epidemic crisis. We also just said that setbacks can make us stronger. In fact, we see that the current Chinese ceramic industry has been reflected. You've chosen a tough but correct path for your business in Singapore, but what else can you share with us?
Eric: The ceramics industry in Singapore is a dealer model, and there are all kinds of links involved in the middle. In the past, many ceramic dealers in Singapore closed their doors every year. There are no ceramics factories in Singapore because we don't have enough resources here to support a ceramics factory.
There is a phenomenon in Singapore's ceramic dealers that when the scale is small, they can still live smoothly, and once the performance reaches 30 to 40 million Singapore dollars (150 million to 200 million yuan), it will collapse. I thought about this phenomenon for a long time before I found the problem.
There are two problems in doing ceramics dealers in Singapore that need to be thought out, first, we can't sell tiles as a single product, we have to sell tiles as a product in the concept of space design. Only when the design style is in front of the peers can it drive the market and lead the market.
By designing to increase the premium ability of the product, only in this way can a reasonable profit be obtained. If you just sell bricks, the profit can not be improved, and the more you sell in the end, the higher the cost, and in the end, not only can you not make money, but you may lose money.
Second, I found that the most expensive costs in Singapore are labor and logistics. If dealers do not build a sound and reasonable logistics system in the process of performance growth, they will face the risk that the higher the sales and the greater the operational pressure. This is one of the reasons why when dealers' sales grow to around S$30 million, they work harder and harder.
Therefore, as a tile dealer in Singapore, you must make logistics a top priority. In the face of increasing logistics costs year by year, we are learning from JD.com and establishing our own logistics system and team system. Only by doing a good job in logistics can the profit margins be reflected, so we now sell more than 100 million (Singapore dollars) a year and can still maintain a high level of profits.
Third, do business with a high degree of flexibility and understanding. Sometimes different solutions may be required for the same problem in different situations. The reason why we are still relatively successful today is because we always maintain insight into the market, especially the boss, it is particularly important to grasp the information of the market, it is best to be able to personally understand the latest situation and trends in the market, rather than simply listening to the report of subordinates. Because sometimes subordinates may make the boss happy without telling the truth.
Yu Yueming: This sounds like it's more difficult, because what you need to understand is the global market.
Eric: It's not so difficult for me, before the epidemic I would travel around the world to run the market, and now that I have the epidemic and can't go out, we will have more time to think, which is particularly important; The second is to communicate more with people outside the company to obtain more comprehensive information. For example, I have many good friends in China, like Lao Ding (Ding Guoxing) of Fasa quartz stone, although he is not in our industry, he can also bring me a lot of market information in different dimensions, which is very helpful for my judgment and thinking. Therefore, I think we should ask more questions, ask questions if we don't understand, and don't care about face. It doesn't matter if people treat you as a fool, it's the most important thing to really understand yourself.
Author's Thoughts:
Eric believes that tiles should not be sold as a single product, but should be presented as an aesthetic form to consumers as a link in the design concept. This philosophy is consistent with Elimont's philosophy of building a design-driven brand. Eric and Banson share the same philosophy and the same values, which is one of the reasons why these two people and two multinational companies can work together smoothly.
The second is to talk about the problem of labor and logistics, let the author think of a case he told when interviewing Island before: Ellimont's warehousing center began to plan 20 acres of land, and finally Island looked at a 62 acres of treasure land, far exceeding the original budget. As a result, Eric took a look at the road and decided to say, "Okay, Island, that's it." ”
At that time, when I heard Island share this case, I felt that this boss had courage. But this time I found a new perspective: Eric's decision at first glance was not a decision he made at the first glance, but a deliberate result of his experience in the Singapore market. Therefore, even though Ellimont was still a young brand at the time, he resolutely made that big decision from the perspective of long-term development.
Just take the ceramic road
100% support for Elimont
Yu Yueming: Now that Ellimont has gone through its fifth year, your original intention is to hope that China will make more and better products, has Ellimont met your expectations?
Eric: Elimont has been growing, and the new exhibition hall in Foshan has also landed, and I am very much in favor of the design concept of the exhibition hall. China's market is not very optimistic at present, in such a general environment, everyone's investment has begun to shrink. Then we will do the opposite, increase investment, and maybe stand out.
Different environments will have different opportunities, and it is difficult for the Chinese ceramic industry, which requires Banson to make great efforts, spend time, perseverance, and perseverance to persist in doing it. There is an old Saying in China that those who have lofty ideals can do things, and I believe that Banson's enthusiasm and persistence in tiles will be able to do better and better.
We will 100% support Ellimont, if we can't do it in one year, we will do it for two years, two years to do it without achievement for three years, as long as we are taking this road properly, as long as we firmly adhere to this concept, then hard work will have results.
Our market is changing rapidly, and we have been groping in response to changes in the market. Now we still have good opportunities, and I have been encouraging Ellimont to sell its products to overseas markets, the Chinese market is very large, but overseas markets can not be underestimated.
I hope that in the next three or five years we can make a little achievement in this industry, not for everyone to see, but to contribute a little more to this industry. We should not leave this industry in this life, so we should have our own mission and do our best to contribute to this industry.
Write the words at the back
Although this is my first time with Eric, we have maintained a fast-paced and efficient communication. Although the exchange is only more than an hour, the content is very compact, there is no fake big empty cliché, it is real dry goods. Eric stands in the perspective of the elite of the overseas ceramic industry, bringing us a different perspective and inspiration. But I can see that although Eric is an authentic Singaporean, his heart is always tied to the Chinese ceramics industry. Therefore, even if Eric mentioned the criticism and pain points of our industry in the process of communication, he also hoped that the industry could develop healthily and surpass Italy as soon as possible.
Good medicine is good for the sick, and advice is good for the ear. The author's nearly 10,000-word interview manuscript has hardly deleted any of the contents of this conversation, in order to preserve the original appearance of the exchange at that time, but also for fear of missing a star and a half may touch the words, sentences, views, and ideas of your readers.
Finally, once again, I would like to thank Island and Banson for bringing this wonderful interview and rich content to the industry. Although it may be that the overall content of this conversation will be like a trickle for the long-term development of the industry. However, the author believes that with the convergence of more and more fine streams, it will eventually bring overwhelming trends to the development of the industry.