Many people may be wondering:
1. What exactly did Lingyue do to make its transformation so successful?
2. What did they rely on to break through and achieve remarkable business growth?
3. How did they respond to the industry’s rapid changes and meet the needs of consumers overseas?

In fact, Lingyue’s successful cross-border selling is rooted in the company’s built-in “real strength + real courage”: firm resolve, smart use of resources, and the courage to plan ahead. Through today’s interview, let’s see how they started from scratch, fought this tough cross-border selling battle, and became the Lingyue they are today!

A winning strategy: deeply analyze market demand, make full use of industrial cluster resources, and forge your own path in cross-border selling!In 2013, while many local factories were content with the OEM contract manufacturing model, Lingyue had already begun exploring the new path of cross-border e-commerce.

Mr. Liu said: “Lingyue started out by manufacturing motorcycle parts. At the time, one of our suppliers also happened to supply another company engaged in cross-border e-commerce. It was through our conversations with him that we learned exports could not only involve supplying large overseas buyers, but also selling directly to end consumers through online channels. We felt this held tremendous growth potential. “

Afterward, we began conducting multiple on-site studies to gain a deeper understanding of local lifestyles in the United States. We found that compared with motorcycle parts, auto parts have a broader and more sustainable market. What surprised us most was: “There is no vehicle retirement system in the US.” This shows that accessory products designed for a model can have a long life cycle. In terms of both potential and demand, auto parts are a sustainable option. In 2015, Lingyue officially shifted to cross-border selling, entered the US auto parts industry, and started its cross-border e-commerce journey. Although auto parts and motorcycle parts are similar in their production processes, auto parts clearly have a much higher barrier to entry. Because different vehicle models have different requirements and standards for parts, each part is model-specific. Combined with the rapid yearly iteration of new vehicles, this results in a very large number of auto parts SKUs. For Ling Yue, who was starting from zero experience in auto parts, this was nothing less than a long, tough battle.

Jeson said, “Our confidence in transforming and entering the auto parts industry comes not only from market demand, but also from the DNA of our traditional manufacturing business and the strong advantages of Changzhou’s auto parts industrial cluster!”"

To “take on” this tough battle, Lingyue did two things:
1. Improve product selection accuracy through data analysis tools:
For product selection, Lingyue used many professional data analysis tools to analyze popular vehicle models currently on the market, identify auto parts with high ownership levels and strong demand on Amazon, and then develop and test those products.

Rengar said, “Data analysis tools and market research have helped us uncover many new business opportunities. For example, through research, we found that a certain vehicle model is very popular, and its users often drive it on special outdoor terrain, so we estimate that this vehicle’s “shock-absorbing” parts need to be replaced frequently, and market demand will also be high. Then, we used product selection tools and data analysis tools to further validate our findings, analyze the strengths and weaknesses of competing products, address pain points, and help Lingyue iterate and develop better products. "

2. Backed by the strengths of Changzhou’s auto parts industrial cluster, we made up for our technical shortcomings:
Menghe Town in Changzhou, where Lingyue is based, is nationally known as the “hometown of auto, motorcycle, and electrical parts.” The automobile and motorcycle parts industry cluster here started in the 1960s. After decades of development, it is now also one of the pillar industries in the region. Because a large number of outstanding small and medium-sized auto and motorcycle parts factories are concentrated there, Lingyue gradually completed its transition from motorcycle parts production to auto parts production through the effects of industrial clustering. At the same time, as Lingyue grew, to meet more market demand and ensure the R&D quality of each product, it also brought in many nearby companies with strong production capabilities to make up for its own technical shortcomings and achieve its goal of producing more high-quality products.

Jeson said, "Many users now prefer customized LED car lights that have a long lifespan, bright illumination, and strong personalization, but we lack experience with car light materials, technology, and other areas. Thanks to the strengths of Changzhou’s local industrial cluster resources, we quickly found professional vehicle lighting manufacturers to custom-design products for us, provide professional R&D solutions, and become our dedicated suppliers, which helped us better ensure product quality and create products that are more popular with overseas customers. Later, we also drew on many resources from the auto parts industry cluster. At present, the independent R&D rate of our products has reached 90%!"

Making products together, building word of mouth together, and working together wherever we’re weak—this is the advantage that industrial clusters bring to business growth, and it is also an important source of momentum for Lingyue’s cross-border selling journey “from zero to one.”

Winning strategy: invest heavily in cross-border infrastructure to create a new path for sustained business growth!Since 2015, Lingyue has accumulated thousands of SKUs. Although the number sounds huge, there is still a big gap compared to the market demand in the auto parts industry. The special nature of the auto parts industry determines that companies need to have a huge number of categories in order to meet growing market demand. Because vehicle models and parts standards differ, most categories are designed for specific applications, so they are not very universal. To meet growing market demand, auto parts companies need to keep speeding up the efficiency and pace of new product development and launches. Therefore, for auto parts companies, developing and selecting new products each year is a very challenging task.

Mark said, “Over the past few years, our new product growth rate has stayed at around 20%, while our product phaseout rate has been kept within 3–5%. This year, as conditions improve, we’ve also set a modest goal of ‘doubling’ the pace of new product launches and lowering the phaseout rate even further.” "

To achieve a higher new product rate and a lower phaseout rate, Lingyue is taking a “heavy-asset investment” approach to tackle this “tough battle.”
1. Build core “equipment” and improve R&D “soft power”:
To strengthen the team’s professional capabilities, Lingyue not only uses a mentoring approach to train many outstanding employees hands on, but also sends the team to the United States every year for study and advanced training, and even invests heavily to recruit top talent from across the country to build a professional team spanning product selection, R&D, and management, steadily strengthening its R&D “soft power”.

Mr. Liu said, “Whether they are entry-level employees or managers, every member of the team is an intangible asset of the company and a cornerstone of its sustainable development. "

Rengar said, “Previously, shortly after one product was listed, it received a piece of negative feedback from a user. After the R&D team promptly identified the cause of the issue, they used the management system to quickly carry out an urgent recall of products from the same batch across different warehouses, proactively handled after-sales issues, avoided many losses, and showed users the after-sales “speed” of Lingyue.” "

Refined management can not only effectively improve how quickly information is obtained through automated management methods, but also use input-output ratios to make more scientific predictions for product selection, so that thousands of SKUs can effectively fill gaps in the market and gain market share instead of becoming redundant inventory that does not generate value.

Mr. Liu said, "A classic vehicle model never feels too old, even after 100 years. “

Because of the special nature of the auto parts industry, especially when a car forms a “model culture”. Even though this car has been discontinued for many years, there will still be many loyal fans, and continuous refurbishment and maintenance work will be carried out in order to preserve the appearance of the model they like. Therefore, for auto parts, it’s hard to produce bestselling products with sales in the thousands or tens of thousands like in other categories. By the standards of other categories, most auto parts products may be considered “long-tail products.” For Lingyue, “long-tail products” do not represent failed products. Instead, they show that the company has a long-term vision and the ability to carry on classic models. This is also reflected in Lingyue’s development journey: rather than focusing on short-term gains, it places greater emphasis on long-term returns and market share. Only by planning its development direction in a more scientific way can it build a strong long-term foundation for future growth.

2. Build overseas warehouses to strengthen warehousing and delivery capabilities
For cross-border auto parts businesses, the biggest headache is product shipping and warehousing. Because auto parts are large and often irregularly shaped, they are difficult to transport and store, which leads to high storage costs, less predictable shipping times, and a risk of product damage. To solve these problems, Lingyue made major investments, not only by building multiple overseas warehouses in the United States to achieve “warehouse coverage across the entire US,” but also by putting a great deal of effort into last-mile delivery.

Jeson said, “Our goal is 3-day delivery across the US. Logistics timeliness directly affects the user experience and can also effectively speed up capital turnover, allowing funds to be invested in new product research and development and accelerating the launch of new products. So, in the long run, the benefits of investing in warehouses and increasing logistics investment go far beyond simply making management easier. “

Lingyue’s warehousing space in the US has now reached 40,000 square meters. Although building its own overseas warehouses may seem like a high-pressure investment, in the long run, the willingness to undertake infrastructure projects on this scale represents a kind of “hard power” that many cross-border selling companies find hard to match.

Winning strategy: increase marketing efforts, strengthen R&D, and expand your global footprint!

Mr. Liu said: “Our next goal is to expand globally. "

From 2015 to now, in less than eight years, Lingyue has not only achieved its goal of expanding across the US, but has also brought categories such as fenders and bumpers into Amazon’s top three, securing a place in the US online auto parts market. This year, Lingyue’s goal is to expand into marketplaces in Europe, Japan, and Canada to meet the needs of more international customers!

Mark said, “To adapt to the e-commerce era, if we want to meet growing demand, we must be bold enough to try more innovative models that disrupt tradition. “

To achieve its goal of expanding globally, Lingyue needs broader capabilities. Right now, Lingyue is working hard on the following:
1. Accelerate R&D:
Although Lingyue already has thousands of SKUs, that is still far from enough for the specialized auto parts category. Therefore, accelerate the development and launch of new products, improve marketing capabilities at the same time, give products more distinctive value features, and increase the success rate of product selection.
2. Build a bigger, stronger supply chain:
It is precisely because of the advantages of Changzhou’s auto parts industrial cluster that Lingyue has been able to keep “recharging” as it grows. Perfecting the supply chain and connecting more capable related companies has always been something Lingyue does. Expand the industrial park, bring in more and more outstanding auto parts companies, help everyone grow quickly together, and also build momentum for its own new product development.
3. Increase logistics and warehousing appropriately:
Continue to strengthen the development of overseas warehouses in a planned, steady way, build core capabilities, continuously improve service capabilities, and make it possible for the business to reach customers around the world in the future.
In recent years, Amazon sales have continued to account for a rapidly growing share of our business. Keeping pace with Amazon and expanding globally is a strategic priority for Lingyue. To support this strategic direction, Lingyue has continued to invest in building its Amazon team and has also started working with an Amazon account manager, strengthening its own capabilities while also using Amazon’s official support to grow more effectively.

Rengar said, “Our account manager gave us a lot of advice on strategic positioning and operations. I remember that during a monthly analysis meeting last year, the manager saw a strong growth trend in a category we had prepared to abandon based on data analysis, and suggested that we increase R&D and production in this area. We acted on that, and after increasing our investment, sales of this product category in a single category increased fivefold in the fourth quarter of last year. "

Starting from zero in auto parts and growing to its current scale, Lingyue’s success comes not only from its own strengths, but more importantly from its ability to recognize opportunities and seize them. And this ability comes from Lingyue’s leaders’ open-minded thinking, their willingness to follow market trends, and their courage to actively embrace new things, as they have led Lingyue with steady planning and strategic positioning all along. Lingyue is an outstanding example of the cross-border transformation of the Changzhou Menghe automotive and motorcycle parts industry cluster, and its transformation journey also reflects the cross-border path taken by hundreds of industry clusters across China. Moving forward, Made in China is speeding up the world. We look forward to more companies like Lingyue, rooted in China’s strong industrial clusters, embarking on the path of transformation and bringing quality products, services, and brands to consumers around the world through cross-border e-commerce!