Professional traders break through

This is the era of game, this is the era of win-win.

Lang Xianping wrote in the article "The Direction of the Industry and Our Happiness": For the healthy development of China's manufacturing industry, it must move towards the front end of the industrial chain, not only to be the "one" manufacturing in the chain, but Advance to the "six" that generate core value, namely product design, raw material procurement, warehousing and transportation, order processing, wholesale operation, and terminal retail. Only companies with pricing power can digest rising costs and achieve long-term development.

On this point of view, Yu Lidong, chairman of Shenzhen Outerui Industrial Co., Ltd., and Zhao Suhua, general manager of Shenzhen Dayang Industrial Co., Ltd., were deeply moved. The one-stop service has attracted large orders from Walmart in South America.

From factory to customer. In the era of flattening channels, how can companies in this link of the supply chain survive? Yu and Zhao gave a common answer: to break through the manufacturing link of the industrial chain, and transform from the comparative advantage brought by price to the comprehensive competitive advantage of high added value.

Outerray: OEM + self-owned brand dual engine

13 years ago, when Shenzhen Outerray, which positioned itself as a premium car manufacturer, was first established, it was not easy to find overseas customers. At that time, overseas customers were skeptical about Autry's ability to operate. Today, 13 years later, there are an endless stream of overseas customers from Aoteray, and the situation has been reversed because they have a professional sales team, and they have won the trust of customers with professional quality and service. The main customers include Walmart, Costco, Dunlop, Carrefour and Auchan, with more than 100 customers all year round.

Otery's customers are mainly divided into two categories: one is the top overseas importers in the automotive boutique industry, and Outerray has formed strategic cooperation with them to complete manufacturing, packaging, and integration to obtain certain OEM profits; The first category is international retailers and supermarkets. Outerray gradually moves to the terminal market and sells Outerray's own brand products.

In the automotive boutique industry, LAMPA, the No. 1 importer in Italy, had a small order volume for AUTRY when it first contacted AUTRY 13 years ago, but today it has become a quality customer of AUTRY. The order amount exceeds 4 million US dollars. The immediate reason for the transformation of LAMPA is the growing ability of Ottray.

Today, Autray has been able to provide 20,000 kinds of high-quality automobiles, and has established cooperative relationships with 500 factories. Its 75-person professional service team can instantly select products suitable for different markets and grades from suppliers. The company also has a special design department, which can quickly design new products according to customer needs. From R&D, design, manufacturing to transportation, Autray can quickly respond to customer needs in different regions by virtue of the rapid integration capability of this supply chain.

OEM orders alone are not enough, and the profits of OEM orders are getting meager day by day. As early as 2005, Yu Lidong started to build his own brand. "The profit of self-owned brand products with pricing power is more than 2 times that of OEM products, which can support the independent development strategy of Aotra in the future." According to the characteristics of consumers in South America, Outray selected five categories of products, and provided brand products in Spanish packaging to the auto center of Walmart in South America. The successful cooperation between Outray and Wal-Mart in South America has also led other countries and regions to pay attention to Autra products. The sales of its branded products have gradually expanded to countries and regions such as Brazil, Chile and Mexico.

In 2011, the establishment of the Outerray R&D Center has been put on the agenda. Based on the analysis of the needs of overseas importers and retailers, Outry started the development of three new product lines. "There is strength to be attractive," Yu Lidong said with a smile, "In 2010, the sales of Outray reached 45 million US dollars. In the next two years, Outerray will implement a steady and expanding strategy, focusing on Southeast Asia, Argentina, and Russia. At the same time, they will also gallop in the domestic market, and will strengthen cooperation with automobile manufacturers and channel dealers. While ensuring the steady growth of OEM orders in Europe and the United States, they will increase the sales of their own brand products.”

Dayang: Transformation from OEM to ODM

During the six years of joining Shenzhen Dayang Industrial Company, there are two things that impressed Zhao Suhua deeply. In 2005, the speed-reading machine designed and manufactured by Dayang Company was popular in the European and American markets; in 2009, Dayang delivered 12-month supermarket promotional merchandise orders to Nordic customers on schedule, and 12 different products designed according to festivals all passed the customer's acceptance. Both of these events indicate that Dayang's unique products "stick" to customers, not only stabilizing the market, but also bringing high-profit returns.

In March 2005, the British "The Times" began to publish crossword puzzles in the newspaper. At that time, a customer of Dayang came home to find that his wife was not cooking, but was playing crossword puzzles, and continued this state throughout the week. . Later, he found that there were people playing crosswords on subways, trains, and planes, but all the crosswords were in newspapers, and there was no electronic version of the product. When he communicated with Dayang's sales consultant, he asked if Dayang could develop this product. The staff of Dayang gave feedback in three days: it can be done, and they came up with a clear plan.

In September of the same year, Dayang Speed Reader was successfully developed. When exhibiting overseas, Dayang's booth was crowded. "At that time, customers' orders were calculated by containers. We had never made such a product before, and it was at that moment that Dayang decided to develop a new product," Zhao Suhua said. "The market taught us the most vivid lesson. "

The success of the speed reader opened the prelude of Dayang's transformation from OEM to ODM, but it was only a small scale at the beginning, and it has not yet formed the mainstream. In the financial crisis that broke out in 2008, customers lowered the profit of OEM orders, threatening the living space of traditional traders. Dayang decided to take the initiative to change and expand its own profit model.

In 2009, the board of directors of Dayang Industrial Group invested in a factory in Hunan to enter the LED industry, and at the same time set up a new domestic trade company to explore the domestic market. In the field of foreign trade, Dayang has increased the construction of the R&D team, formed a team of 8 software and hardware engineers, and a team of 4 designers; set up a major customer department, dispatched excellent business elites to serve overseas major customers, and ensured that they can deeply understand Communicate with customers, capture new products that can generate ideas, and regularly send sales managers from Dayang to visit the European, American and Japanese markets to observe new market demands and quickly feedback to the company to form creative products.

That year, Dayang signed an order with a Nordic customer. "The customer asked us to provide 12-month electronic promotional products for supermarket display, and at the same time provide 12 promotional plans for different solar terms and holidays, including product positioning, packaging, display methods, and product pricing. This is a pair of Dayang designers. The requirements are very high." Zhao Suhua analyzed, "However, we found that when we got involved in more creative designs, we had a relatively strong plan for the entire program, and the control of product quality and delivery was also strengthened. Therefore, the profit margin brought by the order will increase."

After tasting the sweetness, Dayang has more and more products designed by itself, and these products constitute the company's largest profit source in the past two years. Assuming that OEM's profit is 5 points, ODM can achieve 2 times or even 3 times. After going deep into customer channels, Dayang found that creative products enhanced their ability to negotiate with customers, and this ability made them more confident about future business development.

With the ODM capability, Dayang's criteria for selecting customers has also changed. Those customers who only do business with Dayang without discussing design and creative products, even if the order amount is high, they are regarded as ordinary customers. In the trade department, the company's professional sales elites are gathered in the key account department to serve those ODM customers.

Focusing on creative products, we are constantly looking for suitable suppliers and customers to expand our profit model. This is a way to control destiny that Dayang has explored.

Interactive Questions:

1. What core competencies do professional traders need to have to break through from OEM to ODM?

2. How do traders build their own brands?

3. How to establish an effective market strategy when traders turn to the domestic market?