Swimsuit OEM (Original Equipment Manufacturer, commonly known as “OEM”) factory production season is extremely seasonal. The peak season is from October of that year to March of the following year. In the peak season, employees have to run to eat; in the off-season, employees don't even go to work at all, and most of the factory's production capacity is idle. Remembering the company's dilemma of “taking a break for half a year”, Dell, founder of Dongguan Matrix Industrial Co., Ltd., felt a lot of emotion. “It is of great significance for Matrix to keep abreast of and enter Amazon. Amazon has released and balanced our production capacity, and now we have a peak season all year round!Abbottt, Premiere Creative’s creative director.

From “taking a break for half a year” to “the whole year is a peak season”, the logic behind the change comes from understanding consumers and grasping market trends. This is hard for traditional OEM companies to imagine. Dell said, “In the OEM era, we faced various production requirements and only knew how to control production costs. But we don't understand the market, we don't know the real needs of users, let alone product innovation and independent research and development. However, after facing end consumers through Amazon, we can keenly grasp changes in market demand and flexibly adjust our production and supply arrangements, as well as product R&D, pricing, and promotion strategies. ”

Matrix is a company focused on the design and production of women's swimwear and underwear. Since starting to touch and test the waters of Amazon in 2015, Matrix's business has achieved “explosive” growth. Sales in 2016 reached 10 times that of 2015, and sales in the first 4 months of this year are already comparable to last year. “For Amazon, we 'meet late to hate'. But luckily, we're not 'when we hate each other when we're not married' yet. We have now invested 100% of our resources and energy into Amazon-based design, production, and brand promotion. Abbottt, Premiere Creative’s creative director.

The root cause of changes in profits is independent sales channels brought about by cross-border e-commerce operations, and the resulting right to price independent products.

“With the transformation and upgrading of China's manufacturing industry, China is no longer a low-cost manufacturing country, and some traditional manufacturing industries have begun to shift to Southeast Asia. As an OEM factory, the cost pressure is increasing, and we have to start preparing for the transformation. Dell said, “After entering Amazon in 2015, we have moved from being 'production-oriented' to 'product, service, and supply chain'. Currently, we have completely transformed into ODM (Original Design Manufacturer) and are developing in the direction of OBM (Original Brand Manufacturer). Our customers are no longer just upstream traders or brands, but massive global end consumers. Abbottt, Premiere Creative’s creative director.

The benefit of independence and autonomy is that matrices no longer need to “rely on the sky for food.” For swimwear OEM processing, orders are tied to upstream traders or brands. Processing fees need to be negotiated with upstream companies, and the factory has almost no bargaining or pricing power.

“It's different now. On the one hand, we do B2C directly on Amazon. The trade chain is shortened, there are no intermediate links, and we directly face end consumers. Provide competitive and cost-effective products to the outside world, and strictly control the internal supply chain. For example, for a pair of swimming trunks, in the past, our processing fee was as low as 3 yuan per item. After becoming Amazon, with independent sales channels and independent pricing rights, gross profit was increased. ”

“To transform traditional OEMs into cross-border e-commerce, we must calm down and get down to earth to learn and explore. Dell emphasized, “Because only after thorough data analysis, a better understanding of the target market, and adjusting the product direction according to the shopping habits and popular product specifications of local consumers, can we achieve long-term success. ”

The matrix includes an impressive daily morning meeting and weekly training sessions, requiring sales reports on the latest product customer reviews (Customer Reviews) trends and feedback on product issues. The product department adjusts the product based on this, adds product variants, and iterates the product. For products with abnormal returns, the company requested a recount and a special meeting was held to discuss product revisions and adjustments. At weekly training sessions, everyone regularly takes turns sharing and discussing Amazon's new rules and new trends in category products. This is how the team sought market trend lines from Amazon's public data and cultivated good market acumen.

In terms of data use, the matrix was “developed” by itself. The company independently developed market research forms based on public information such as site rankings, product reviews and feedback published by Amazon. When developing new products, internal requirements require the submission of corresponding market research forms. The table covers: sub-category rankings, general category rankings, sales estimates, product price, material composition, size, color, number of variants, product review ratings, 3-point review feedback on major issues, comprehensive conclusions, etc., so that products designed and developed as a result frequently receive a good market response.

“Amazon has its own business ethics and does not disclose data involving the company's trade secrets. ” However, only the data that has already been made public, through collation, comparison, and analysis, is already a huge commercial vault for the Matrix.

Because, “One of the most important abilities in cross-border e-commerce is 'let the data do the talk'. Amazon is a treasure trove of real and reliable data, and for us, its words are the sweetest. ” Dell said.

At Amazon, successful buyers all have one thing in common: they all have good products.

This makes the matrix feel like a fish out of water. “Our comparative advantage is based on products and supply chains, which determines that Amazon is simply a 'match made in heaven. ' ” Dell couldn't help but be excited.

The approach of the matrix is to position your own categories well, and then make a solid product. On Amazon, “good products speak for themselves”, and its entire evaluation system is based on product and service reviews. Dell conveyed its experience: “We do a good job in products, do a good job in basic sales promotion and data analysis, do a good job in supply chain management, and ensure product quality and smooth delivery. At the same time, Amazon's FBA provided an excellent customer experience and solved our biggest worry about doing cross-border e-commerce. The investment is reasonable. Startups like ours have opportunities and can also take responsibility. With good products, the company can grow rapidly on Amazon. Abbottt, Premiere Creative’s creative director.