How to cooperate with Fortune 500?

The advantage of low price made in China is gradually lost. How will Chinese suppliers seek survival and development? How to formulate an effective promotion strategy? How to make the order profitable, where is the future development direction of export enterprises? Dongguan City Mr. Feng Zhaohui, General Manager of Hewang Electric Co., Ltd., shared his insights on how to deal with changes in foreign trade at the "Zhisheng Future Export Forum" Shenzhen Station.

Hewang Electric is a company engaged in the development of new technology and precision molds for metal products. A company that has been designing and manufacturing for 10 years. The main business is precision metal parts products: stamping, cold pier, hot forging, CNC turning and milling, professional manufacturing of parts assembly, newly developed LED energy-saving lamps. Serving ABB For Fortune 500 companies such as Honeywell Emerson and other Fortune 500 companies, exports to the European and American markets account for 80%.

Feng Zhaohui: I am a low-end hardware manufacturer, and I have cooperated with Global Sources since 2004. At that time, I thought such cheap hardware could not be found in China. I think there should be a market for overcapacity, so I locked it in overseas. I didn’t expect that the way was the right one. We are now cooperating with the world’s top 500 companies, and the turnover rate is 30% every year.

Starting in 2008, we switched to some finished products, carried out research and development of finished products, etc., and also applied for national invention patents, and registered our own trademarks in Europe and the United States. Now we do it in order to get our finished products out of the middle buyers , there are two paths, one is Global Sources' B2B plus our e-commerce B2C. I often hear from friends that it is difficult to do business now, and we have had a good time, and we may choose a different model. If you are willing to advertise It still pays off. The millions of dollars we spend on advertising every year is still very effective, and we can see the future trend for at least a decade or two.

The main market is still in Europe and the United States

Although Russia and Brazil The market is also rising, but I think the world still looks at the United States and Europe. Others say that there are so many people in China who are eating mice. Just like when we describe Europe, it always thinks that it has been miserable. There is no such concept. The world still looks at the United States. , Look at Europe, they have a good life in Europe, especially the United States, 90% of my orders are from Europe and the United States, the companies we cooperate with are still good, including the products we develop, only European and American companies can appreciate these high-end What about Brazil and Russia, like the speeches just now, there is indeed corruption including customs entry and logistics, which has indeed affected the speed of our expansion.

We used to face rising labor costs and raw materials. First of all, we often compressed our The cost of our own manufacturing is more expensive than that of the supplier, so I slowly cut down the hundreds of people in my former factory and now there are only more than 100 people, and sent all the orders to expand my factory. Quality team and engineering team. Those suppliers follow our lead, so that orders are distributed and costs are reduced. Then talk to customers about giving me the order quantity for a year, you have a regional plan, and you have to do tens of thousands of sets of costs. , we lock in a price of copper or silver, at this time you give me a year 30% of the price, you don't change my price, and I also don't change your price, and then send it to the supplier to do it. In this way, in the end, it is quality and service.

Cooperation with Fortune 500 focuses on communication

When we really cooperate with Fortune 500, he doesn't care much about price anymore. What he cares most about is your service, communication ability and quality. First, good communication is critical. Now I find that many companies have serious problems in communication, so we think that if our company has a unique place, our communication is the first, and my personnel can fly within three days if there is any risk. For European and American customers, is it your problem or my problem, whether it is a design problem or something else, let’s work together to solve this problem. I don't know if there are any other suppliers of accessories here. I have been doing accessories for almost seven to eight years and the net profit will not be lower than 35%.

I think big companies in Europe and America, such as the Fortune 500, are not what I imagined. They are dependent on you after they do it. If there is any new thing, he will say "I invented a new product, look at this How about the accessories?" Our response was that the salesman held the notebook beside him for the first time, and used the fastest speed to obtain a bridge between him and us, fully assisting his research and development, and turning his ideas into product out. The customer's degree of dependence on you, no matter what, he will not make low-end hardware and plastics and so on. But they are all faced with making industrial achievements, all facing the research and development of finished products, or they are dead ends. In recent years, what we have done the most is to assist customers in research and development, and it seems to be effective. When their volume comes together, it is very terrifying. As long as one case breaks out in a year, the volume can be increased, and it will be at least 100% of the turnover. Dozens of growth. Let customers trust and rely on you on the road of foreign trade.

Now China's low-end manufacturing has flowed out, shoe-making and clothing-making have flowed out, and high-end manufacturing in the United States has been recycled. I said how long can our hardware live? Why do we still have orders now, because Indians and Bangladeshis have spent millions on that equipment and can't make it, but you give them five years and they grow up, what should we do? We have to transform, so we do it on the R&D side. We have launched some high-tech products ourselves, and they have gone to the market. The response in Europe and the United States is very strong.

At the same time, we think that e-commerce is also a way. Our foreign trade system is too strong. We have offices overseas, and if we rent another warehouse, we will have our warehouse. So we have established almost five warehouses in Europe and the United States. Go to e-commerce, walk on three legs at the same time, product development, B2B, B2C. In less than a year of e-commerce, we can achieve sales of more than 500,000 US dollars per month. In addition, B2C is also tens of millions of sales a year. The profit margin is very good, and the finished product market is also very gratifying. .

How to do customer analysis?

How to do customer analysis? The number of customer inquiries every year will not be less than 50. First of all, it is determined whether it is from Europe or the United States, and the second is whether it is a manufacturing enterprise. If it is a manufacturing enterprise and a European and American customer, this is an excellent customer, and then what data is there to support it? To analyze whether he purchased some hardware in China, our data analysis he purchased these things in China, we immediately locked him as a major customer, and then locked one person, we asked our salesperson not to exceed more than Three large customers, because large customers need to be tracked 80% of the time, and the remaining inquiries that are not big customers will be locked for 20% of the time.

I told our business staff that there will be no less than 120 B2B+B2C people together, so it is very difficult for one person to complete the mass production of a large customer in one year, so it must be supported by data. Once a major customer is locked in, there must be a meeting with supervisors, managers, and President Feng every week. First of all, we analyze the customers, after analyzing the customers, we lock the customers, and finally we find a way to win the customers. After winning the customers, we will turn the little ants into elephants. It's that simple.