Compete outside the product

Global SourcesUpdated on 2023/12/01

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Philip Kotler pointed out that the customer's choice depends on the transfer value of the purchase. Assignment value = total purchase value - total purchase cost. Total purchase value = product value + service value + image value + personnel value, total purchase cost = monetary cost + time cost + physical cost + spiritual cost. Among them, the personnel value mainly refers to the value of the personal relationship between the internal personnel of the enterprise and the customer, and the spiritual cost mainly refers to the cost of worrying about the customer when shopping.

Kotler's theory has great practical guiding significance for Chinese export enterprises. In today's era of serious product homogeneity, the product itself can no longer obtain much comparative advantage. In addition to providing cost-effective products, enterprises also need to work on professional services, customer support and even mutual relations. Improving the purchase value, reducing the cost of purchasing, and maximizing the transfer value are the keys to the competitiveness of an enterprise.

For the exporting firm, what value is included beyond the product? Chen Yuxiu, manager of the international trade department of Fenda Electronics, believes that dealing with customers must first be professional. In addition to knowing the products well, it is also necessary to understand the background of customers in many aspects, and only on this basis can we provide professional services. Think about what the customer thinks, see the subtleties, and strengthen the relationship with each other. Huang Haiqing, deputy general manager of Sanxing Sporting Goods Co., Ltd., believes that companies must respond to the trend of diversified customer needs and provide customers with various supports, including channels, promotions and after-sales services.

Provide professional services

The cooperation with Walmart is considered to be an important pawn in the development of Fenda Electronics' export. Currently, the supply to Walmart accounts for more than 30% of Fenda's total exports. Not long ago, Fenda established a business relationship with French Guo_Love. In addition to strict product requirements, these large customers also put forward special requirements for services, especially the requirements on some documents. Fenda had to provide them with a lot of paperwork, and it took five months to prepare the Walmart paperwork. Without professional service attitude and level, it is impossible to meet the demanding requirements of these major international customers.

Professional service is inseparable from a professional team. Fenda International Trade Department has only a dozen employees, but it has achieved an annual export volume of 25 million US dollars. In order to make the service more professional, Fenda Electronics divides the global market into several regions and sets up several regional sales managers in the International Trade Department. For major customers, special personnel are required to follow up. For example, several employees are specially arranged to be responsible for the work of Wal-Mart, which ensures the quality of personalized and differentiated services. Sanxing company has 4 people who specialize in serving AVIA, a big buyer in the United States, who purchases more than one million pairs of sports shoes from Sanxing every year.

Some things that seem unrelated to you actually have indirect effects. Fenda Electronics has a Romanian customer, mainly engaged in home theater business. The audio part was purchased from Fenda, while the DVD and video were imported from another factory in the Pearl River Delta. Due to the quality problem of the latter's shipment, the customer suffered heavy losses, and the cooperation with Fenda was temporarily suspended. Later, after the negotiation between the two parties, the customer wants to buy the products of the home theater. If Fenda can't produce it, it will take the initiative to recommend other factories with good reputation and undertake part of the quality supervision work. In this way, everyone has business to do and maintains a good cooperative relationship.

Some customers are small in scale and unfamiliar with the market, which requires exporters to support each other through their own professional services, and prescribe a "one-dose prescription" according to the actual situation of the customer to achieve a win-win goal. Chen Yuxiu introduced that small customers with potential cannot be easily given up. First of all, you can recommend some products for trial sales based on your own analysis, and then you need to train customers for sales channels and slowly cultivate the market.

A small Korean client with only a few employees didn't even know which products to buy when he first came to Fenda. Fenda designs products according to the size and price requirements provided by the other party, plus its own understanding of the local market. Since the products catered to the market's appetite, coupled with the expansion of customer channels, after one year of cooperation with Fenda, the customer reached a monthly shipment of 20 small cabinets, which was an achievement that no one expected at first. small single market. Now the customer visits Fenda every two months to further communicate with each other on market information and the next cooperation with each other.

In order to reduce the risk of customers, for those customers who do not understand the market, Fenda Electronics generally adopts a strategy of small quantities and many varieties, and increases the number after the customers understand the market. When we first cooperated with a new customer in Russia 3 years ago, Fenda installed 12 models in a large cabinet. Although the company increased the cost, it reduced the customer's risk, and more varieties are more beneficial Test an uncertain market like Russia. Shipments to this customer are now up to 60 large containers per month.

Maintain full communication

Sanxing's Huang Haiqing believes that it is very difficult to make sports shoes in the international market today, and the low-price competition of small and medium-sized enterprises has disrupted the market order. Sanxing, a large-scale enterprise You can't just fight the price, you can only find a way out from other aspects. Therefore, the company changed its business strategy, emphasizing communication and close cooperation with buyers, and winning orders with more professional cooperation.

The orders from American buyers are relatively large, but because the prices are too chaotic, Sanxing, which is reluctant to deal in low-end products, has turned its focus to Europe. Huang Haiqing introduced that the European market is relatively mature, customer orders are relatively fragmented, the demand for styles is large, and the quantity is small, so the requirements for communication and service are higher. Before confirming the order, it is necessary to proof many times, some need to be tried on, and some even need to be tested. Different from ordinary small factories, Sanxing has always won the trust of customers with a warm attitude and close cooperation.

In addition to the cooperation before the order, the level of after-sales service is also the focus of customers' attention. Perspective export companies will give customers a certain percentage of free spare parts supply to ensure the quality of products after sale. A few months ago, Sanxing Company sent a batch of goods to Romanian customers. Due to the problem of workmanship, the PU bottom was not firmly bonded and it was easy to fall off. According to the 3-month quality guarantee, Sanxing can shirk its responsibility, but finally compensated the customer for 90,000 US dollars. "The after-sales quality guarantee for export is clearly stipulated for 3 months, but we will handle it flexibly according to the specific circumstances of customer strength and cooperation." Huang Haiqing explained.

Major customers generally require high service levels and strict requirements for delivery time and after-sales service, among which communication is the key. In order to determine the order, production, shipment, payment and other aspects of export, in addition to buyers and sellers, it also involves many institutions such as banks, insurance, shipping, etc. In this process, no matter how well prepared, there will always be problems like this and that . At this time, it is necessary to maintain sufficient communication with the buyer. If there is a problem, explain it to the other party in time, and propose a solution. Most of the buyers will give understanding.

Due to the time difference between overseas and overseas, Fenda's international trade department has become a "flexible team", which can arrange time according to needs. In order to be in a hurry, Chen Yuxiu often works until the early morning when shipping. Chen Yuxiu's own mobile phone is open 24 hours a day, responding to customer inquiries at any time and handling various problems in time as needed. No wonder Walmart sincerely praised Fenda as "one of the most responsive Chinese companies."

Support agents

Find powerful agents, or cultivate agents, or even develop exclusive agents, and become a weapon for export enterprises to expand channels. Perspective exporters believe that the interests of the company and the agent are tied together, supporting them, and ultimately benefiting the company itself.

The first is promotional support. Sanxing Sporting Goods Co., Ltd. started its export business in 1994 and is the earliest footwear exporter in Quanzhou. Since 2000, due to disorderly competition in the international market and declining profits, the company began to build a domestic brand. Due to the unique positioning of the brand (fashionable sports shoes) and the attractive spokespersons (Nicholas Tse, TWINS), the "Xtep" brand launched in the domestic market was an instant hit. The "fashion, avant-garde, individuality, freedom" it advocates has firmly captured the hearts of young people. In just a few short years, "Xtep" products have achieved impressive results with a comprehensive market share from zero to 13.81%.

Interestingly, Sanxing's customers also learned about the great success of the "Xtep" brand. There was once a Turkish customer who ran a chain store. Seeing Sanxing's experience in brand promotion, he hoped to use the help of Sanxing to promote his brand in Turkey. Sanxing introduced the promotion process and plans of the "Xtep" brand to customers in detail, and put forward suggestions for brand promotion according to the characteristics of the other party. Due to the success of brand promotion, the buyer has now become a long-term cooperative customer of Sanxing, with an annual shipment of 60 large cabinets.

The product catalog design of Fenda Electronics is very professional. If customers need, the company will print more for them to facilitate their use. At the same time, in order to promote Fenda's brand, if customers or distributors use the "F&D" brand abroad, Fenda will provide assistance in advertising, design, etc., and provide a 2% discount as an advertising subsidy. In terms of exhibiting, Fenda Electronics and local distributors jointly designed booths and provided samples for free. For exclusive agents, if the F&D brand is used, the company and the other party will share the booth costs.

In cooperation with agents, we must pay attention to long-term interests. There is a clear responsibility plan between Fenda and the agent, and the exclusive agent cooperates more closely with each other. After an exclusive agency is established in an international or regional area, its interests are strictly protected. Once other customers in the area contact Fenda, they will be politely declined and the local agent will be informed. There was a buyer in Eastern Europe who was a competitor of Fenda's exclusive agency, and then tried every means to find it, hoping to buy directly from Fenda. Despite the client's higher bid, Fenda asked him to contact a local agent. Protecting the interests of the agency is to ensure the long-term interests of each other. This is the consensus of the visionary export enterprises.

Fenda Electronics and some customers go beyond the scope of general cooperation. According to Chen Yuxiu, some larger buyers have fully trusted Fenda in the long-term cooperation. In order to ensure the quality of their supply, delivery time and other special requirements, they jointly invested with Fenda and opened up a special assembly line to produce only for them. At present, a Korean customer even has the "F&D" logo on the business card, and the effect of brand promotion is more direct.

Maintaining business relationships

As a country of etiquette, the Chinese people's ability to "pull relationships" is also outstanding in the world. This relationship capability is often valuable in exporting businesses. The total purchase cost of customers is the sum of monetary cost, time cost, physical cost and spiritual cost. If a good relationship and mutual trust are established with each other, the time cost, physical cost and spiritual cost of customers will be greatly reduced.

Chen Yuxiu of Fenda Electronics believes that the first contact with customers is very important. Customers do not know much about the company, and the impression of the first meeting directly affects future cooperation. Fenda generally asks customers to visit the company. In addition to the advanced production lines and well-organized workshops and other hardware facilities, customers must also see the company's professional and warm soft environment. "If a customer recognizes you, he will have more confidence in the product. Excellent employees will inevitably produce good products."

Chen Yuxiu introduced that before the arrival of new customers, Fenda Electronics will conduct a comprehensive analysis of the customer's background. Understand, including the strength of customers, channels, customs and cultural background, etc., the details can not be ignored. The company hangs welcome slogans, and employees will greet each other warmly when they meet. Regardless of the size of the customer, the company will fly the flag of the other party and receive it with diplomatic etiquette. According to needs, the company will help the other party to book the hotel, and arrange special translators and vehicles for the other party to use.

"In addition to products, we also pursue personalized service." The company sends a car to pick up and drop off customers, play music familiar to the customer's country in the customer's language, and make the other party feel at home. On major festivals for customers, the company will send congratulatory letters and always keep in close contact with customers.

The cooperation between Fenda Electronics and Jia_refu has gone through a long process. The company has been in contact with Jia_refu's purchasing manager for a long time, and has shown the cooperation information with Wal-Mart, but the other party has been hesitant. Fenda is not discouraged and has always maintained a good relationship with each other. Later, I seized the opportunity and sent a set of small speakers to the manager, asking him to use it first. Finally, the manager was convinced by the high cost performance of Fenda's products, and finally began to place an order. "A good relationship is very beneficial to each other's business, and how to manage a business relationship is very knowledgeable." Chen Yuxiu was deeply touched by this.

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