What are the three revisions of Global Sources?

The ancients have long said, "Those who chase two rabbits must not have one", which vividly pointed out the danger of inattentiveness. Like this guy who didn't get a rabbit, many businesses miss out on excellence due to lack of focus.

Faced with too many opportunities, these businesses waste time and resources on businesses they shouldn't be in, customers they shouldn't serve, and opportunities they shouldn't pursue.

In contrast, a focused business can always catch the rabbit—achieving its goals. Focused companies know that in today's global market, there are so many opportunities that it is impossible to seize all of them;

A more modern analogy: A focused business is like a laser beam. Lasers can concentrate energy into a beam so powerful that they can even cut diamonds.

“When a business is focused enough, it can have the same effect,” said Al Ries, co-author of the classic marketing book “Positioning.” “It’s like creating a powerful laser-like ability, Enough to dominate the market. That's the essence of focus."

Focus is also the essence of Global Sources. Through sustained focus, the industry-leading Asian company has maintained its dominance in the business-to-business (B2B) media market for the past 35 years. This focused strategy has also enabled Global Sources to successfully play the role of a major facilitator of trade between Asia and the West, much appreciated.

Specifically, Global Sources focuses on three business elements: Mission, Customers and Execution. These three elements are critical to any business model. They depend on each other and magnify each other. Most importantly, the three are balanced against each other.

Focus on mission

Many companies don't have a vision or mission statement when they start out, and they develop such a statement only after a certain period of time. Often their purpose is to reinvigorate a business, or to retrace the trails of the past after getting lost. Some businesses even add such a manifesto as an afterthought—as if the mission statement was an optional add-on.

For Global Sources, the mission has been clear from the very beginning. On the cover of its first issue, Global Sources (then known as Asia Sources) presented a bold "mission statement":

"We believe that only by Enduring and reciprocal trade relations promote material abundance, thereby realizing the ideal of world peace."

Some might think this manifesto is nothing more than an idealist's dream. However, for Merle Hinrichs, founder, chairman and chief executive officer of Global Sources, the manifesto is absolutely realistic. The manifesto provides the guiding principles and main motivations for the business. "We all feel like we're fighting for something greater than our own self-interest," he said.

In addition, Global Sources has outlined ways to achieve this goal in its mission statement. Global Sources will "enhance" the "market potential" of Asian exporters "through strong, professional advertising messages". For Western buyers, Global Sources will "gather information on the Asian supply market, analyze its development and forecast its direction" to help buyers make purchasing decisions based on reliable information.

It is worth mentioning that Global Sources adheres to its purpose and has never wavered.

Over the past 35 years, the global economy and the functioning of global trade have changed dramatically (see "Standing on the Tide of International Trade"). But no matter what great changes it has gone through, Global Sources still sticks to the mission it set for itself when it was founded.

How do leaders keep their businesses focused? The answer from management guru Jim Collins: Make sure your business remains a hedgehog. The so-called hedgehog refers to those companies that completely focus on their own strengths and achieve "good to great".

Global Sources' passion for fulfilling its mission has made it a quintessential hedgehog. Global Sources is well aware that the challenge for hedgehog companies is not how to create opportunities, but how to select them.

Collins says hedgehogs follow a simple formula: "We don't do anything that doesn't align with our philosophy. We don't launch businesses that don't align with our philosophy, we don't acquire businesses that don't Will not do joint ventures that have nothing to do with our philosophy. If it is inconsistent with our philosophy, we will not do it. Full stop."

Collins is literally quoting Hallis. The Global Sources helmsman is known for taking the company's course to stay true to its business philosophy. If an executive came up with a promising opportunity but had no real connection to the business, Hallis would say, "Maybe it's a good idea to do it now, but we won't do it because we have to focus on the goal.

In addition to its dedication to its mission, Global Sources also has a strong ability to correctly predict future trends. To some onlookers, Global Sources always seems to be in the right place at the right time. This view is only half right. It would be more accurate to say that Global Sources has always positioned itself in the right place, and when the right moment comes, it can perform its functions immediately.

One example is that Global Sources decided to focus on the Chinese market long before "China" became a buzzword for companies around the world.

Global Sources CEO Craig Pepples recalls the company's early forays into the Chinese market.

“A year after the Chinese government announced the implementation of the opening-up policy, Han Leishi began to discuss business in China. At that time, all exports from China were handled through import and export companies. These import and export companies were the only channel for Western buyers to obtain Chinese products. This It means that we recognized China's potential very early."

In 1980, Global Sources began publishing a magazine called China Sources.

This is the first magazine dedicated to the Chinese market. Less than three years after the publication of the magazine, Global Sources has published the magazine "International Electronic Business". This is one of the first foreign publications to report the development of overseas electronic technology, which has promoted the rapid start of China's electronic industry.

Since then, in 1988, Global Sources began to publish "International Industry and Trade Business", which mainly provides economic information and reports on the development of international trade, which is the predecessor of "CEConline". The magazine has rapidly increased its content in the field of management, attracting Chinese managers who are hungry for Western business information amid the tide of reform and opening up.

"The company's series of actions shows that we have long understood China's huge potential and special information needs," Pei Kewei said.

Another example of being in a position earlier than others is Global Sources' early adoption of electronic media.

In the early 1980s, 10 years before the business world first heard of the Internet, Hallis had begun taking steps to prepare for an infinite future in which electronic media would become the primary communications vehicle for global business transactions.

In 198_9, Global Sources acquired a controlling stake in a software company that developed order processing software. In 1995, Asian Sources Online was established. In addition, Global Sources has released CD-ROMs that complement each of the company's trade magazines. One industry-leading innovation after another is brought to market.

Harriers said: "Whether it's innovation in technology, the provision of new areas of procurement, or the specialization of publications, websites and trade shows, we've always been at the forefront of the industry. For decades, we've been imitated by many companies. object."

Customer focus

One characteristic of Global Sources that competitors have difficulty imitating is its passion for listening to customers.

Many businesses claim to focus on listening to their customers. Some even claim to have dedicated salespeople who are good at focusing on customer needs. Yet few companies dare to say that top managers also visit customers regularly — and truly enjoy it.

In fact, visiting customers is one of Hallis' most cherished responsibilities.

Pei Kewei said: "It's rare to see someone in a high position like him willing to take the time to visit customers in person and listen to their problems and needs like a normal salesperson."

When Harris went to visit customers He may indeed act like an average salesperson, but his view of the sales function is decidedly different. "Salesmanship" believes that sales is the salesperson's effort to sell something to the customer; the best salesperson is the one who can make the customer buy what he doesn't really need.

Harrison takes a very different view. "I'm not selling something," he said. "All my customers have needs, and all I'm trying to do is make sure I'm offering them a product that actually solves their existing problem. Of course, there are definitely a lot of companies that don't. My help is needed, but more companies do. My personal job is to find those companies that need it and make sure that the solution I offer is the best possible solution for them."

Visit customers regularly More than just chairman and CEO.

Other members of Global Sources senior management also go with the sales staff to "double-visit" customers, a practice that has proven effective in promoting an understanding of a customer's unique selling point. Do customers just want to increase sales? Or do you really want to improve cost management? Do they want to improve their brand positioning? Do they want to secure the company's image as a leader in the industry? Does the customer's product have target customers? Are target customers divided by region? What is the customer's real goal?

Herries said, "It's not selling, it's understanding. First, you understand what the customer's problem is, and then come up with a solution. The customer will either accept your solution, no matter the price, or reject it."

Clearly, Global Sources customers are willing to pay for these solutions. In 2004, Global Sources revenue reached $105.8 million, an increase of 15 percent over 2003. 2005 revenue is expected to be between $111 million and $112 million.

In addition to obtaining sales contracts, another benefit of being familiar with customer needs is that the company does not get too far ahead of the customer.

A management motto is: You must be ahead of the customer in order to lead the customer, but never too far, or you will lose the customer. In e-commerce, the stakes are even greater: technology is changing so fast that it has to catch the right wave of technology.

That said, but how do you know which wave is the right one, and where it's going? "There's only one way: to communicate with the customer," Peikewei said.

Thus, even if top management does conduct global research and forecasts future developments, they must rely on customers to check reality and determine feasible implementation options.

Sarah Benecke, a longtime Global Sources executive and now executive director, said: "We often say that the only wrong decisions are those we make at headquarters. If you keep communicating with your customers, I'm sure you won't miss them. Too many opportunities, too many strategic mistakes."

This customer-centric approach to sales adopted by Global Sources is a key characteristic of companies that believe in "customer intimacy."

Fred Wiersema, a famous marketing guru, points out that such companies "sell productivity, not products." In his book "Customer Intimacy," Wismar explains, "Sales are dead. Today's salespeople have to be productivity experts for the customer. That's what they're really supposed to sell."

Focusing on the customer also makes Global Sources grows with customers. In today's economic environment, this means that Asian exporters must be truly global.

Global Sources helps these exporters realize that true globalization is more than "shipping a box". Globalization is a complex process, and the ultimate goal is for companies to solidify their foundations in the international market and achieve long-term success.

In fact, thousands of businesses in Asia have embarked on a truly global journey with the help of Global Sources. Often, the first step is to find the right buyer for the product. Global Sources helps suppliers connect with buyers through a variety of channels - magazines, websites, trade shows, and even arrange small face-to-face meetings. Since then, many exporters have gradually started to promote their own corporate brands after going through several stages of development.

Many companies in China have begun to promote their own brands, while others are acquiring brands. Global Sources can provide specialized services for these needs.

"All of this is not new to us, because other markets have gone through the same process," said Pei Kewei, "so we can respond quickly and teach Chinese companies the skills and know-how of other countries' success. "

This demonstrates another trait of businesses that maintain a close relationship with their customers.

Wesmar explains: "Businesses that maintain a close relationship with their customers have a powerful weapon that enables them to stay ahead of their customers: collective intelligence. By communicating with customers in different fields, these companies build a treasure trove of knowledge and experience from which to They can get supplies at any time."

Focus on execution

There is no doubt that if the plan cannot be put into practice, the above-mentioned so-called sticking to the mission and approaching the customer will only be on paper.

This is the third focus that Global Sources embraces: a relentless focus on execution. Global Sources is proud that the company represents the highest level of professionalism and uses it to execute plans as methodically as possible.

“Every time we set out to try something,” Peikewei said, “it starts with making sure we’re fully prepared. We put a lot of effort into building systems that can ensure success.”

Global Sources The rapid success of the serial procurement trade fair business is a prime example of its execution skills.

Global Sources has always wanted to break into the exhibition arena. Most suppliers obtain information through magazines, websites and exhibitions. So do buyers. However, Global Sources has been able to offer services on most of these platforms in the past - exhibitions are not among them.

Ms. Benecke has been helping companies develop and execute trade fair strategies for several years. "We have been following the development of the fair in China and decided to hold our first China Sourcing Fair for consumer electronics and electronic components in Shanghai in October 2003," she said.

Harrison selected Benecke to ensure the success of the first purchasing fair. But Benecke faces a big problem. She can get the resources she needs, but she can't move the current Global Sources staff. The company cannot afford to move its existing sales force up from the core business.

Benecke can only transfer one person - Tommy Wong - to lead the new sales team. "That is, we need to sell a large exhibition, but there is only one salesperson," Benecke said. "It's a good example of focused execution - once we decide that something has to be done, we take action and try to find a way to do it. Do it well. We advertised a lot, interviewed a lot of people. We went to the market to find the best salespeople who had worked at Global Sources. We asked everyone around us, 'Can you think of it? Who? Who was doing well?' We called everyone and asked if they would come back. We also scouted for salespeople from competing companies who would work for us." Quite a few salespeople expressed interest. Within a year and a half, Benecke and Wong Tan Wai hired 250 people.

Finding salespeople is only the first challenge. The next challenge for Global Sources is even tougher: selling exhibition booths. "We found these salespeople, but none of them sold booths. And our company has no experience organizing product-focused fairs."