Small products also have a big market

The advantage of low price made in China is gradually lost. How will Chinese suppliers seek survival and development, and how to formulate effective promotion strategies? How to make the order profitable, and where is the future development direction of export enterprises? Mr. Wu Huaisheng, Operation Director of Guangdong Shuye Environmental Protection Technology Co., Ltd., shared his insights on how to deal with changes in foreign trade at the Shantou Station of the "Zhisheng Future Export Forum".

Wu Huaisheng: Our company is about to celebrate its 18th birthday. We have been making a small shopping bag every day for 18 years. Last year, we achieved a breakthrough of 300 million yuan. There is a big market for small products. I am still confident.

We are mainly based on the characteristics of environmental protection and circular economy as a product. The shopping bags are reused to reduce the distribution of the earth's resources, so our market mainly comes from Europe and America. Slowly after so many years of development, including Southeast Asia, including Africa, has also produced many new customers. In 18 years, we have moved from a very ordinary manufacturing enterprise to a solution-centric one, that is, what we are launching now includes the results of our years of practice, from materials to products, from design to production, we provide everything. solution, which is the direction we're going all the way down.

Every business has a cycle. I personally think it is similar to the laws of nature. So since 2008, because the market is now flat and many cultures are common, a problem often arises. I feel the deepest That is, the orders of major customers have become multi-batch and small-batch, especially after the refined management chain we advocate, including the cash flow that attracts everyone's attention, many of the product inventories are passed on to suppliers of different levels.

The original procurement cycle was twice a year. Now, due to the high degree of informatization in the development of the Internet, their products have a large choice of space, so they fragment the cost of product inventory, so they form a multi-batch, one-time Ten orders or six orders are placed, but each order is in small batches, and this change is relatively large.

As for how to deal with changes in foreign trade, our entire team often talks about this sentence. Sales are the leader, production is the guarantee, and innovation is the profit. I personally understand that innovation may not be a very narrow innovation, from the material innovation of products, process innovation and even requiring our entire team from production to sales, their usual behaviors require innovation. Personally, I often emphasize that there is no garbage in the world, it’s just that things are placed in the wrong place. Now there is a word called “cross-border”. I make eco-friendly shopping bags. I promoted it to my team at the time. There can be no sunrise or sunset in this industry, but what kind of things do we provide to our customers in different eras, is it what they need? When it comes to environmentally friendly shopping bags, our five thousand-year-old environmental protection concept in China is very, very deep. Older people know that when we bought cooked meat in Chaoshan area, we used cabbage as a container, and even used bamboo shells. is truly eco-friendly.

So I personally put more emphasis on innovation, because innovation is not only about materials or products, but even a behavior I just mentioned, especially the engineering department of our company, you have done many things before, and I personally feel that customers include us Many buyers, our salespeople, companies, and bosses require us to grow every day. In fact, our enemies and our buyers also ask their buyers to reduce their procurement costs for performance, which is obviously from the price. From this point I can understand his reasoning, why? I made this product for you for three consecutive years. Practice makes perfect for all your workers, and the production capacity will definitely increase. This is an old product. I will slowly ask you to reduce the price every time. I think it is reasonable. If our engineering department or even our material distribution is not well implemented, for example, the craftsmanship used to use hands, but can you vote with your feet? Because the hands and feet are used together, your production capacity may come out. So I personally pay most attention to the idea of innovation.

Just now, Mr. Zhuang also mentioned that his products are unique. I personally think that competitors may come in in three to five years. If your product is not sold to the society, it will be either 0 or 100 points. In the future, this ratio may change gradually. You may say that you have used it, and you may say that it is not good. You will slowly return to the original in the face of high-value things.

A bag of two cents, thirty cents, very low. Now that the manufacturing cost is so high, everyone is dreaming and trying to make high profits while standing and sleeping. When it comes to quality, I don't know right or wrong, but I have always implemented a policy that in our OEM-led manufacturing enterprise, the delivery time is the first, and the quality is the second. Why? You must pursue profits. If a company without profits is too big, it can’t go far, and it can’t go very far. Why do you say this? Blind pursuit of the so-called quality standards invisibly increases management costs or operating costs. How to balance the quality of products requires us to make great efforts in sales. For example, your product is sold to Brazil, which we just talked about. High quality requirements, or sold to the Middle East.

I remember that I stayed in Xinjiang for three months in 1999. When the purchasing group in Russia bought our clothes, they didn't understand this kind of light industrial products. After shaking a few times, I found that the sutures would not burst, so I felt very good. Under the standard of customer price, you blindly pursue your so-called quality, which invisibly reduces your market competitiveness. I think it is unnecessary. So for the OEM, the delivery time is related, and I say that anything is meaningless once it is separated from the time.

For example, I told my manager to give you a bonus of 10 million, and the manager was very happy, but I didn't tell you when I would give it to you. The price you promise to the customer is not a key factor, it is not a sensitive factor, and it will not play a decisive role, but if you tell him that the shipment on the 10th has been delayed to the 15th shipment, your reputation will be a problem, and the delivery time is the fatal and concern. Locally, this is often because you have increased the quality standard of the product. This problem may occur.