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Ningbo Daily: Foresight Behind the "Short-sighted"

Date: 2012-08-21      Hist: 2190

 

" Ningbo daily " report ( reporter Liu Huimin, correspondent Gan Quan ): In 1997, Xu Pingju etc. 6 young people established a foreign trade company, named " Sellers", in the bonded zone. They never have imagined that Sellers has been growing by 40%-50% annually since 1997, and been one of the leading companies in Ningbo. In 2010, the leaders established “Sellers Union Group”. In 2011, Import and export volume of Sellers Union Group is nearly $0.2 billion, is expected to reach $0.3 billion in 2012. Also employee will be more than 700 in 2012. In 2013, the target of company is that import and export volume reaches $0.4 billion; the number of employees reaches 1000. President Xu Pingju is very modest in the interview, but always with confidence in his words, he says: we believe that, Sellers Union will continue to maintain an average 50% growth in the future 3-5 years. "
"Everyday 100 New Products -- Our Products without Boundary”
As an import and export company of daily commodities, the products range is big and complete: quantity is big and category is complete. This product range is unique because most foreign trade company’s product range is serialized and specialized. When the business scale is not big, big and complete product range do not have price advantage, which seems not promising. Due to the competition of the foreign trade business, trade companies and industry and trade combined enterprises develop separately in deranged form, the advantage of products variety and mixed products flexibility is showed gradually.
After the product range is confirmed, Seller Union begins to source products and factories in Ninghai Yuyao Cixi Fenghua etc. in order to enlarge the variety of the products and suppliers. Soon they develop close relationship with the suppliers. And in early 1999, they established purchasing office in Yiwu. They choose new packing, competitive price, and good quality products around Yiwu Commodity city which enrich the products and realize the diversity of products. Moreover, the company sets up a large product showroom in 2002, in display of millions of products from thousands of factories, which facilitate customers’ one-stop purchase. Then the company builds a 5000 square meters logistics distribution center in 2004, in order to solve the problems of cargo assembly and delivery of small, medium and big supermarket customers, which soon absorbs another group of customers. After several expansion, now the company has 5000showroom with more than 50000 kinds of products in Ningbo and Yiwu. Everyday, average 10 batches of guests come to visit our showroom. Now we have established stable trade relationship with more than 1000 customers from more than 100 countries. Moreover, our own logistics distribution center is nearly 20000 with more than 30 warehouse administrators. Everyday, there are about 50 to 60 containers loaded in average.
Xu Pingju said: “our products are without boundary. As a trader, we are providing service essentially. What customers need, what we provide. We are not confined to the present fifty thousand kinds of products; we hope to add another 30000 products, approximately everyday 100 new products. "
From " Sell Products" to " Sell Service " – Advance in Transformation
Since 2008, the international market lasts fatigued and weak, many foreign traders feel more and more difficult to do business. But Sellers Union maintains more than 50% growth. Compared to last year, the import and export volume grow by 55% from Jan to July this year. Xu Pingju explains: " we just developed some big terminal customers." Through the depth interview of journalists, they feel that the real reason is that Sellers Union is advance in transformation from “sell products” to “sell service”.
For better transforming from “sell products" to” sell service”, Sellers Union starts to change the management. They change the company model from the manager directly control to “cooperation + team+ organization " process and tries to build a big trade service company which are team cooperate, department flexible, decision-making rapid and operation efficient. They try to show and think as a big company, meanwhile, act and operate as a small company. Every team is the business decision-making center and also order fulfillment center. Every team is the origin of cost, profit and business incentive. This kind of business structure and team combination makes the company more flexible. The company becomes a business fighting fleet that advance and retreat together, and compete each other.
Meanwhile, Sellers Union has noticed the new emerging market, mainly exploring the new market of Russian, Brazil, Mexico, South Africa, India, Indonesia etc... And they try the best to reduce the intermediate links, and build direct business with the importers and retailers by improving the service of foreign trade which include insurance, purchasing, package, logistics, import and export custom clearance etc... And they improve the market share through the agent that is familiar with the local culture and mode of trade. The business in Brazil and India increase 80% after 2008. The Russia market is one of the most important international market now while is almost blank in 2008. Moreover, the business develops stably in Mexico. More than 30 customers locate in Mexico’s major markets and purchase hundreds of thousands of dollars annually. Xu Pingju introduces that the sales of new emerging markets has occupied 40% of the company’s total sales and will reach about 50% next year as the new markets develop well.
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