Seller story

Selling 200 million US dollars a year, how can traditional furniture factories “prosper” on Amazon?

January 3, 2025
Reading time about 6 minutes
Large pieces of furniture need to face multiple challenges when going overseas to do cross-border e-commerce. Enterprises need to improve and optimize packaging to reduce transportation costs and logistics damage rates, properly address issues such as cash flow management and supply chain integration, and meet the diverse preferences and needs of consumers in different countries and regions for furniture selection...
As a pioneer who dared to try and break through, Changzhou Olft International Trade Co., Ltd., located in the Changzhou Furniture Industry Belt, grew step by step from a furniture manufacturing factory to become a leader in the cross-border e-commerce storage furniture category. From bravely taking the first step in cross-border e-commerce in 2015 to now, it has achieved brilliant achievements of up to 200 million US dollars in annual sales on Amazon, and is still growing rapidly year by year.
At the recently concluded 2024 Amazon Global Store Cross-border Summit, Cao Yanheng, the founder of the post-90s, won the “New Generation Business Leader Award for Overseas Business Leaders of the Year” with his strength, ushering in another glorious moment since starting his business. Today, let's take a look at Olft to learn the wonderful story of how they overcame many challenges and achieved impressive records.
Reshaping the way to lead
From OEM manufacturing to a brilliant transformation of cross-border e-commerce
In eastern Changzhou, hundreds of wooden flooring and furniture factories are concentrated, mainly for OEM and OEM processing for overseas brands. Once upon a time, Orft was an ordinary member. But the vision of gaining initiative and voice has always inspired Orft to take a more difficult but desirable path — the path of its own brand.
Since 2015, Mr. Cao, the founder of Olft, has been actively planning and laying out the cross-border e-commerce business section, and has specially dispatched a core team to Shenzhen to conduct in-depth research and study. In 2016, the company officially entered Amazon's US website to begin a cross-border e-commerce transformation journey.
Cross-border e-commerce has opened up valuable opportunities for brand autonomy. By directly connecting with consumers, we can more accurately understand market needs, and then accurately guide the direction of product design and development. Furthermore, it has greatly enhanced our pricing autonomy, making the brand's development path more flexible, varied and full of possibilities.
—— CEO Cao, founder of Orft
01 Product selection: facing consumers, accurate iteration
The first hurdle of transformation is product selection. Unlike traditional foreign trade, which is produced according to customer design arrangements, end consumers of cross-border e-commerce have higher requirements for product design and function. When it first joined Amazon, Orpheus faced such challenges. The differences in business logic forced management to start thinking about new questions: How to actually discover and solve needs from the user's perspective?How to replan the input-output ratio?How to push the company to learn and launch product innovation?
Guided by a thorough corporate culture, Orft carried out extensive and in-depth market research, carried out accurate professional analysis of user needs, and carried out accurate product selection based on this, and continuously optimized product iterations.
Take chest products as an example. American users prefer to choose models with larger specifications and designs incorporating American red and blue tones due to spacious home space; while Japanese users prefer compact furniture, which has extremely high requirements for the storage performance of the chest, and at the same time prefer a simple and cool style in terms of color. It is through this meticulous market insight that Orft has made a precise leap from traditional to cross-border e-commerce product selection.
02 Quality: from the factory, strictly controlled
Derived from its factory background, Olft has extremely strict requirements for production and quality. Currently, the company has two specialized factories, which focus on the production of metal furniture and panel furniture, and are equipped with independent technical research and development teams to strictly control product quality from the beginning. From creative design and fine manufacturing of products to environmentally friendly packaging, Orft strives to achieve standardized operations in every step to ensure excellent and stable product quality.
In terms of product design, Orft strictly follows international standards to ensure that products meet various market certification requirements such as FDA and UL. The quality inspection process is also a top priority for the company. In the middle and final stages of product review, Orft invests a lot of manpower, time and money to carry out comprehensive, multi-stage product quality assessments and audits to ensure that every product can meet the highest quality standards.
In addition, Orft attaches great importance to intellectual property management and has more than 20 overseas registered trademarks and more than 30 patents. These intellectual property achievements not only highlight the company's innovative strength, but also greatly enhance the product's market competitiveness. At the same time, the company is also committed to convenient disassembly of products to meet the convenience needs of logistics distribution and user assembly.
It is particularly worth mentioning that many of Orft's products have obtained Amazon's Climate Pledge Friendly certification (Climate Pledge Friendly) and sustainability logo, which fully demonstrates Olft's unremitting efforts and outstanding achievements in environmental protection and sustainable development. In the future, Orft will continue to promote product innovation and environmental upgrading to bring consumers a greener, more standardized and high-quality home living experience.
03 Global layout: build local teams and gain recognition
In the process of going overseas, Chinese companies often face many challenges in understanding the mentality and needs of overseas customers. Taking Japan as an example, customers have high requirements for product quality and detail. They not only pursue excellent product performance, but also focus on the perfect presentation of the details. For products such as 3-in-1, perforated furniture, etc., Japanese customers will want every hole to be equipped with hole stickers to protect the surface of the furniture from damage and maintain its beauty. In order to respond quickly to market needs and provide more detailed products and services, Orft has set up a Japanese localized operation team to ensure that every product can meet the “strict” requirements of Japanese customers. This move not only significantly reduced the after-sales complaint rate, but also won wide recognition and trust from Japanese customers, laying a solid foundation for Olft's brand building in Japan.
It can be seen from this that only by thoroughly understanding the culture and consumer needs of overseas markets can we accurately position and launch products and services that meet the needs of the local market, thereby standing out from fierce international competition and successfully building a truly global brand.
In order to achieve more refined operations in Japan, we have specially recruited an elite team composed of people with a professional background in Japanese and rich study abroad experience. Through in-depth market research and meticulous user needs analysis, we have successfully developed an innovative product specially designed to solve customers' lumbar support problems. This product not only incorporates cutting-edge ergonomic concepts, but also fully takes into account the unique needs and preferences of Japanese consumers.
As soon as the product was introduced, it quickly won enthusiastic responses and widespread praise from the market. Among them, a female customer had obvious relief from her lower back problems after using our products. For this reason, she handwrote a sincere thank-you letter and personally sent it to our Japanese warehouse. This sincere feedback from users is undoubtedly the highest recognition and praise for our team's hard work and excellent product quality.
—— CEO Cao, founder of Orft
04 Branding: marketing first, building a global brand
Orft has always been firmly on the path of sustainability and steady development, and its grand vision is to become an omni-channel furniture brand leader. In order to achieve this grand goal, the company attaches great importance to brand building and is committed to continuously broadening the target customer base by deepening the brand moat to lay a solid foundation for the long-term development of the brand.
In terms of marketing strategy, Orft adheres to the core concept of “marketing first” and makes full use of the rich brand marketing tools provided by the Amazon website. The company carefully constructs a marketing system within the website. Through accurate positioning and efficient promotion, the company reaches and attracts a wide range of user groups in a more accurate and efficient manner, and continuously enhances brand awareness and reputation.
In terms of brand promotion, we mainly focus on SB (Sponsored Brands), SP (Sponsored Products), and BP (Brand Push Notifications) advertising tools on the Amazon website. The effective use of these tools has enabled our current traffic conversion rate to perform well.
At the same time, Orft has always maintained an open mind and actively sought support from external wisdom. We maintain close partnerships with many excellent strategic consulting firms and brand consulting experts to jointly face and solve various problems and challenges in the brand building process. This internal and external integration method has injected a steady stream of impetus into the development of our brand.
Looking forward to the future, Orft will continue to work hard in the brand field and is committed to building omni-channel brand influence. With excellent products and services as the foundation, we will continue to win wider market recognition, and let Olft's brand shine in every corner of the global market.
—— CEO Cao, founder of Orft
Advanced development trajectory
Build a talent pool to drive a sustainable leap forward
As the cross-border e-commerce industry enters the latter half of a more mature stage, we know that to ensure that a company's growth is both stable and sustainable, it is necessary to take a step ahead in building organizational capabilities. Achieving this goal is inseparable from the full support of experienced and well-structured talents from all walks of life and business segments. The professional knowledge and rich practical experience of these talents will provide us with an indispensable solid foundation for building strong organizational capabilities and inject a steady stream of vitality and impetus into the long-term development of the company.
—— CEO Cao, founder of Orft
Behind the rapid growth of the business, we are also facing the problems of talent development and continuous iteration of organizational structures. In 2023, Orft only had more than 100 employees, but by 2024, with the rapid development of the business and the advancement of strategic planning, the team size had doubled, reaching more than 200 people. Behind this number is Orft's tremendous efforts to recruit people, train people, and build a talent evaluation and training system.
01 Adhere to the long-term principle and improve the business sector
Orft has always adhered to the core concept of “long-term principle”. In the stage of rapid development, Orft was not fooled by short-term performance, but instead poured more resources and energy into building and improving organizational capabilities and improving the system of various business segments.
In order to improve the supply chain system, Orft set up a supply chain planning department to promote everything from front-end sales forecasting to full back-end delivery. The accuracy rate of sales forecasting was increased by more than 50% compared to the previous one, and the out-of-stock rate was reduced by 20% compared to the previous one. At present, Orft has successfully built a complete system covering various key areas such as products, marketing, brand, and supply chain, laying a rock-solid foundation for the company's long-term development.
02 Break down industry barriers and recruit high-end talents in an eclectic manner
People are right, everything is right. Rapid development means finding the right people quickly. Orft does not focus only on the relatively traditional furniture manufacturing industry and the cross-border e-commerce industry, which is still in a period of rapid development. Instead, it is looking for outstanding talents across industries to mature industries and benchmark companies.
In order to build an excellent management system, Orft spared no effort to bring in elite talents across industries from leading companies, and high-end talents from companies with perfect products and supply chain systems such as Apple, Midea, and Haier to provide them with cutting-edge industry and track support. When introducing these high-end talents, whether they have experience in building a system from 0 to 1 is what Orft is most concerned about. The large enterprise system and system are perfect, and Orft is still a rapidly growing startup. After these “big factory” management arrives, they will have a broad space to build a team, a department, or even a complete business segment, which is both a challenge and an opportunity.
03 Focus on colleges and universities to absorb the power of the new generation
In addition to introducing management talents, Orft also attaches great importance to school recruitment and develops talents on its own from scratch. This is very rare in the cross-border e-commerce industry. The reason behind this decision stems, on the one hand, from the scarcity of mature talents in cross-border e-commerce in Changzhou, and on the other hand, from Orft's long-term cultural and ideological support. At present, Orft has established cooperative relationships with many well-known universities in the region. Through various channels such as campus recruitment, professional skills competitions, and cooperation to jointly build university laboratories, Orft has continuously injected fresh vitality and innovative thinking into the organization.
Orft actively draws on the talent development methods of benchmark companies in the technology industry. It not only refines the job responsibilities and requirements of various levels, but also lays out clear career promotion paths for employees, thereby stimulating the internal potential of employees and promoting their continuous growth. At the same time, they have also carefully built the Olft Business University, where the School of Leadership tailors exclusive courses every month to focus on current hot topics, promote in-depth discussion and exchange of experiences, and continuously improve the team's core competencies.
04 Relying on the Amazon Seller Growth Service Team to fill the talent gap
At the same time, Olft has also joined the Amazon Seller Growth Service Program. Exclusive account managers can provide Orft with professional advice on product selection guidance, performance and operation planning, brand building guidance, logistics and inventory guidance, etc., to help Orft continue to build a complete operating service system, so that the company's products in the three core scenarios of bedroom furniture, living room furniture and office furniture can take root and grow efficiently in the US and Japan.
The key to “Fu”'s rise is a stable foundation. Only in this way can rapid replication and steady growth be achieved. In the journey of transformation and growth, Orft has always adhered to quality first, strictly controlled the supply chain, upheld the spirit of long-term principle, built a talent pool, and continuously refined organizational capabilities. Only then did Orft create a brilliant achievement of today's annual sales exceeding 200 million US dollars. Looking forward to the future, building a global brand of 10 billion yuan or more, so that China's intelligent manufacturing can serve every home in the world will be Orft's goal in the next phase.
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