Explode!“Crafty in the East: China Pride” is officially launched. Amazon takes you to witness the rise of China's industrial belt!
December 8, 2022
In the past, China's manufacturing strength was hard core, but it was difficult to surpass Guanshan; now, the Chinese manufacturing industry has risen strongly, and strong companies have gathered and integrated “groups”, and mature industries are scattered all over the place, making a strong voice of Made in China to the world!
Today, let's first walk into the two major industrial zones of Yongkang Hardware and Anji Chair Industry.
Legend has it that in ancient times, Xuanyuan Huangdi built a fortress in Shicheng Mountain in the south of Yongkang to cast bronze and weapons. Some craftsmen stayed and lived here with their casting process. This is the “root” of Yongkang's hardware culture.
Forging swords in spring and autumn, Chinese crossbow machines, Tang casting bronze guns... Hardware techniques have been passed down from generation to generation in Yongkang, forming an enduring “craftsman culture” and incorporated into the bones and blood of Yongkang people. “Burning fire is blazing with sweat, walking the streets and lanes in every direction” is a true picture of Yongkang hardware craftsmen.
It has a rich heritage of craftsmanship and a long history. This handmade culture, which has been passed down for thousands of years, nurtured excellent prerequisites for the birth of the Yongkang Hardware Industry Belt.
At the end of the 80s of the last century, there were 40,000 Yongkang craftsmen engaged in small hardware techniques. However, although there are many “famous craftsmen,” it was difficult to achieve scale. It wasn't until 1992, when Yongkang withdrew from the county city and began construction of the China Science and Technology Hardware City. The focus of development shifted to industry. This is an opportunity for Yongkang Hardware.
In 30 years of development, “modern hardware”, which mainly focuses on eight major industries, including power tools, cup industry, door industry, electrical appliances and kitchenware, equipment manufacturing, and new materials, has been introduced one after another. Wave after wave, the economy has accumulated a strong heritage for Yongkang's hardware industry. The industrial belt advantages are becoming more and more prominent, and Yongkang has also completed the transformation from the traditional hardware industry to the modern economic system.
After 100 years of refinement, perfection is achieved, and “old trees” “sprout” for life. As of April 2021, Yongkang has 41,000 hardware companies, more than 400,000 people working in the hardware industry, covering more than 10,000 kinds of products. The hardware industry concentration ranks first in the country, and is the largest hardware product production base in the country 1.
The transformation of going overseas is imperative. Seize the opportunities of transformation and go overseas with the “factory+cross-border e-commerce” model. Currently, Yongkang Hardware has become the largest export base for hardware products in the country, and its products sell well in 193 countries and regions around the world. With outstanding industrial belt advantages, 11,300 Yongkang cross-border e-commerce enterprises are active all over the world. Yongkang is moving step by step from the “Hardware Capital of China” to the “Hardware Capital of the World ” 2.
Hals and Crown Group are the pioneers of Yongkang's overseas enterprises
As a leading manufacturer of cups and pots, Hals upholds the spirit of craftsmanship to polish products, accelerate the cultivation of its own brands, and explore and expand new markets.
Since the launch of Amazon Enterprise Purchase, Hars' B-side business has grown dramatically. Products are sold directly to terminal enterprise purchasing users. B-side customers value the seller's production and R&D strength, product cost performance, product quality stability, and longevity of supply, which is more conducive to Hars' dual track layout on the C-side and B-side at the same time.
Crown Tools, located in the same Yongkang Industrial Belt, is an enterprise that has been deeply involved in the hardware tool industry for 25 years. It started as an OEM in the early days and then began a brand transformation. In a situation where the European and American offline hardware tools market is basically monopolized by foreign brands, Crown has built an online global brand through Amazon, opening up new opportunities for development. Crown has also fulfilled its promise to “be the Chinese's own power tool brand.”
In the process of overseas development, through Amazon data reports, Crown was able to accurately locate the consumer base, and optimize and adjust products based on consumer needs and preferences on different sites and Amazon user feedback. In order to meet the differences in consumer demand for power tools in different usage scenarios, Crown expands diversified categories to provide users with better product services and consumer experience.
At present, Crown is at the top of the Chinese tool industry, and its products sell well in more than 30 countries and regions in Europe, Asia, America, and Australia.
Before the advent of the chair industry, Anji County in Zhejiang Province was still a mountainous county where bamboo was grown and cultivated with bamboo, and the industrial base was very weak. In 1981, Anji Science and Education Equipment Factory made the first five-wheel swivel chair in China, then declared a new national product and passed the certification. The market response was overwhelming for a while. Many Anji people joined the chair industry one after another, and the Anji chair industry officially took root.
However, the scenery outside of “Any Gate” is unknown, and the new road is not just an easy one. In order to improve brand competitiveness, manufacturers blindly expanded their prices, which eventually led the Anji chair industry to show shortcomings such as small enterprise size, no well-known brands, and a single product variety. This caused the Anji chair industry to fall into a trough in development in the 1990s.
In order to improve the competitiveness of the industry, only by adjusting ideas, breaking away from the “scattered small and low” industrial model, building brands, innovating products, and expanding channels can we promote the transformation and upgrading of the chair industry. The government took the lead in establishing a swivel chair industry association to unify standards to guarantee quality, and provide policy convenience to technology-based, large-scale, and brand-type enterprises, and soon put the industry on a healthy development path. In 2011, Anji County proposed a transformation and upgrading route based on “World Chair Industry, Intelligent Manufacturing in Anji” and adhering to the five-in-one transformation and upgrading route of R&D, processing, management, channels, and brands. By 2021, the total number of Anji chair industry enterprises had reached more than 1,000, with revenue exceeding 50 billion yuan, of which 270 were regulated enterprises and 91 enterprises with an output value of more than 100 million yuan 3.
Forty years of exploratory development have made the Anji chair industry a modern industrial cluster with a complete industrial chain and a clear division of labor. Today, the chair industry is the number one pillar industry in Anji. In the global chair market, “made in Anji” chairs can be found everywhere in every country and in various usage scenarios. “Out of every three chairs in the world, one comes from Anji”, which shows that Anji chairs are exported all over the world and are famous all over the world.
In recent years, Anji has stepped up the pace of going out to sea. In 2012, the export value of the Anji chair industry was less than 10 billion yuan, and by 2021 it had reached more than 25 billion yuan 4. The global office furniture market is vast, and many Anji chair companies are building their own brands and getting rid of the OEM model. What is left to the Anji chair industry is a wider space for development.
Zhongyuan Home and Wanbao Smart Home are typical examples of Anji companies going overseas
Like many traditional foreign trade enterprises, Zhongyuan initially worked in key overseas markets such as the US, Europe, and Asia, mainly doing OEM sales and OEM business. The low added value of the product is a pain for all Anji chair industries, and it is also a shackle that Zhongyuan Home Furnishing must abandon.
The link between traditional foreign trade methods is too long. Not only are profits being cut at various levels, but market information and user needs are not obtained in a timely manner, and they are unable to respond quickly to changes in demand on the overseas market side, which has become an obstacle to enterprise innovation and development. In 2009, when using new materials for production, Zhongyuan was unfortunately returned due to lack of information feedback, due to hidden mold hazards.
These practical problems, which need to be solved urgently, prompted Zhongyuan to find opportunities in a difficult situation, so they chose Amazon as a direct channel to connect overseas users. It eliminated intermediate links such as wholesalers and retailers, had a deeper understanding of the needs of overseas consumers and B-side enterprise users, was able to more accurately grasp trends in overseas markets, and achieved a leap forward in “de-centralization” and “lightweighting” in cross-border transactions.
Wanbao, which has good R&D capabilities and industrial advantages, developed the idea of doing cross-border e-commerce as early as 2012, but it has been slow to implement it due to lack of channels. Until 2016, Marlboro landed on Amazon and began a cross-border overseas trip.
Appearance determines whether customers buy their first chair; comfort determines whether they buy a second chair. ” In the early stages of product design, Marlboro will understand competitors, analyze user needs, and make different adjustments to function, appearance, and comfort based on Amazon's back-office data. We also optimize products based on customer feedback, such as using Simmons springs as inspiration to solve the industry pain points of chair cushion sponge collapse.
In 2021, Marlboro Smart Home launched Amazon Enterprise Purchase. As a result, in addition to large orders and high-quality global B-side buyer resources, corporate purchasing account managers also provided comprehensive operational guidance to help Wanbao achieve advanced operations.
Currently, Marlboro's annual sales have reached around 40 million US dollars4. KILLABEE, its e-sports chair brand, is leading in sales in the Amazon e-sports chair category.
A high-quality industrial belt with concentrated resources, a complete supply chain, and enterprises, has increasingly become a fertile ground for Chinese manufacturers to go overseas!Craftsman started in the East and has more and more industrial belts, bravely breaking through overseas markets with the craftsman spirit of striving for excellence and daring to innovate, and overcome obstacles in the global market with a trend of thousands of sails.
Amazon corporate purchases will continue to penetrate the high-quality industrial belt, support high-potential cross-border enterprises from zero distance, enable the digital transformation of Chinese manufacturing plants, and help the Chinese industry go overseas.
Amazon Business Buying is leading a new type of foreign trade DTB (Direct To Buyer), creating a new direct procurement channel for global enterprises. Currently, the nine major sites have been launched, and there are more than 5 million high-quality enterprise and institutional buyers, covering the four vertical fields of healthcare, government agencies, educational institutions, and commercial users, which can help sellers directly meet the huge global commercial procurement needs. China's industrial belt has strong manufacturing and supply chain capabilities, which can meet B-side procurement needs. Large-scale sales fed back to the production side can also help enterprises increase production capacity and expand the scale of the industrial belt.
Online commercial procurement has become a trend, and cross-border procurement for enterprise end users is growing strongly. It is a good opportunity for Chinese sellers to use their industrial strength and go overseas. Combining scenario-based commercial procurement analysis, overseas procurement demand research and industrial resource advantages, Chinese sellers have identified five strategic categories of MRO industrial products, office supplies, commercial furniture, and commercial IT, as well as the four high-potential categories of commercial kitchen, scientific research and medical care, hotel supplies, and auto maintenance.
Industrial belts give sellers the advantage of high quality and price, and are priority targets for B-side customers. Amazon Business Buy has a deep insight into the trading habits of B-side buyers and sellers, and has launched corporate discount pricing tools and batch procurement tools to help sellers set B-side exclusive prices and quantity discounts as appropriate to win bulk orders. It can also allow buyers and sellers to complete customized procurement projects directly online to reduce costs and increase efficiency.
Open Amazon Business Purchase. One seller account can target individual and business buyers at the same time. One inventory, single operation, and the cross-border e-commerce B2B and B2C markets are all covered. Amazon Business Purchase also provides sellers with guidance on various aspects such as online consultation, operation advice, commercial product selection, brand building, and traffic conversion. Exclusive support+exclusive operating resources to increase B-side sales, expand business opportunities while enhancing brand influence, and help brands go overseas.
Looking at the overall situation, the new cross-border trend DTB is on the rise. We are looking forward to seeing more high-quality industries join the overseas army, take advantage of the momentum, write overseas stories made in China, and shine on the world stage!
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