Win the favor of buyers with R&D and design capabilities

Global SourcesUpdated on 2023/12/01

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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? Mr. Zhang Xuejun, General Manager of Ningbo Hengrun Import & Export Co., Ltd., who has 12 years of experience in foreign trade, shared his insights on how to deal with changes in foreign trade at the Ningbo Station of the "Zhisheng Future Export Forum".

Ningbo Hengrun Import and Export Co., Ltd. was established in In 2002, it mainly sells socks and pantyhose, as well as gloves, scarves, hats, underwear, has its own design and development team, the main export countries are the United States, Britain, Ireland, Japan and other countries, the current customers are Primark, Tesco, Marks & Spencer, Target, Family Dollar, K-Mart and Dollar Tree, etc. The company has a production capacity of more than 1.8 million pieces per month, and the factory has passed BV and ISO9001:2000 certification.

Design is the core competitiveness of the company

Zhang General: The main markets of our company are the United Kingdom and the United States, and the main customers are retailers. I feel that the company's biggest competitive advantage is product design. Since 2005, I have been to Ireland and the United Kingdom myself, and have visited A lot of customers, they also wanted to come to China for development at that time, he asked me if you have a warehouse in Ireland, he wanted you to send the goods to the store. The second asked me if I had a design. Since that year I started to have my own design, we The company designs and sells it by itself, and the basic models are rarely made.

The R&D design is favored by buyers

Since the financial crisis in 2008, under the pressure of domestic and foreign situations, many foreign buyers, especially large-scale Retailers go to China to find intermediary trading companies or factories to cooperate. As a result, in the process of doing so, everyone will find that orders are flooding in all of a sudden, which also brings many opportunities to many companies.

By 2011, this phenomenon will change Now, this year is also changing. This is what I observed. What changes? Many customers, especially those from Europe and the United States, gradually moved their orders from 2011 to Turkey for production. I am a textile manufacturer, and the original production base was in 2008. It was in Turkey, Italy, then transferred to China, and then transferred back. In 2011, the business in this area will be very poor. What is the reason?

It is caused by the inability to keep up with the service and quality of some of our factories. Our company It should also be said that there was a decline in 2011 and 2010, because the customer's orders went to the factory. This year, it is obvious that old orders are increasing. This increase is not traditional products or products with low added value, but Those with higher added value, or orders with design, come here. Why is there such a change? I think it is inseparable from the services of foreign trade companies. The service needs to be strengthened, that is to say, after we experience this curve, we hope that our peers and colleagues will Can strengthen the management within the company, improve the level of salesmen, This is the most important.

The market is very difficult for some new companies and new salesmen. I don't think so. I think there are many opportunities now. Especially this year, large buyers have returned to China and returned to trading companies. He hopes to get better deals. Serve. The so-called service, I think it is this: the speed of the first reply, including your understanding of the product, to understand the performance and manufacture of the product, so as to facilitate communication. Second, we must think for the customer, what he wants, so that we can serve the customer well. To give you an example, now large retailers do not just give you a product for you to talk about, but give you an idea and a color for you to design. I think the improvement of a company's business should be based on design. Promote the company's different products in different seasons, let it run with your ideas, and your price will be very good.

If you always compete with low prices, it should not be a pursuit for us, why? China's productivity is already declining, and a large number of orders will be hot in the future. If they cannot be produced, it will bring great losses to the company. It is better to improve their product design to increase the added value of products, and corporate sales may further increase. .

Explore the Latin American market: enter the market with small orders

For the Latin American market, I remember that in October 2011, there were many customers from Brazil, Chile, Mexico, and Russia, but there were almost no customers from Europe and the United States, because it happened to be his The business returned to Turkey and Canada, so many people were asking about it at that time, but most of them couldn't do it. Why? First, the prices in their country should not be very good. Second, their order quantity is relatively small, and the price may be low if the quantity is small. Domestic factories have the habit of producing large quantities and good prices, so there are contradictions. My personal suggestion is this, you have to work hard to do small orders, because only if you do them will you succeed. If you don't want to do small orders, you will end up with nothing.

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