How does baofeng company do monthly sales of 500,000!
How does baofeng company do monthly sales of 500,000!
The Virgin Mary in the sky and the blessings last forever. This statue of Mazu Niangniang, which is set up in Changfu Village, Xiamei Town, is always seen by friends who go to Baofeng Electronics, and contributes a lot to the construction of the statue Baofeng Electronics. In the past five years, Baofeng Electronics has achieved rapid development, and the monthly production and sales volume has reached an astonishing number, but it also attracted a lot of controversy, and it is impossible to get rid of the "low-cost dumping" hat. In any case, Bao Feng has indeed changed the competitive landscape of the low-end market, so how does it do it? Look at the analysis from another angle.
In Changfu Village, Xiamei Town, Nan'an City, Fujian Province, you can often see such a family-based Taobao shop model, youth shop, responsible for store operations and other series of work; wife statistics orders, and fill out the courier; while parents are responsible for package delivery . A family of three, three generations of the same family, very busy.
In recent years, e-commerce has brought about earth-shaking changes to Changfu Village, and this change has been subtle. Unlike some Taobao villages that rely on agricultural products or various types of native products for sale, Changfu Village Taobao stores are sourced from the same company, namely Baofeng Electronics Co., Ltd., which is famous for producing walkie-talkies in the town.
A company that drives one industry. Although it faces homogenization competition in the supply of goods, through reasonable planning and driving, the Taobao merchants in Changfu Village have achieved differentiated and healthy growth, and through the joint promotion of local government, e-commerce association and leading enterprises. To achieve steady progress in the development of e-commerce. Although the Taobao Village model of Changfu Village has its particularity, it also has its universal significance for reference.
First, the leading enterprise online search
Speaking of Changfu Village, I have to mention Xiamei Town, Nan'an City, where it is located. As the birthplace of China's walkie-talkie production, it has the reputation of “the hometown of Chinese walkie-talkies”. According to incomplete statistics, there are currently more than 100 walkie-talkie companies operating in the local and national areas by Xiamei Town. Baofeng Electronics Co., Ltd., located in Changfu Village, is one of the leading enterprises. According to Chen Canhua, the company's business director, 90% of the walkie-talkies in Changfu Village are from Baofeng Electronics, and the sales through e-commerce channels have exceeded 100 million yuan.
Founded in 2001, Baofeng Electronics was developed from the original team that only made walkie-talkie patches. Later, after the independent production and assembly, to the process of flow production, the sales model also went from the initial self-production to the distribution model. At the same time, it also led to the local walkie-talkie industry.
In the interview, Chen Canhua told the E-Commerce Reference reporter that since the company introduced automated production earlier, it reduced labor costs and had certain advantages in price. In addition, mechanical production can guarantee product quality, so until now Baofeng Electronics invests a lot of money in production equipment every year.
As a equipment manufacturer, Baofeng Electronics' sales group mainly focuses on civilians such as industrial parks and factories and enterprises with a wide audience, rather than military groups with high technical requirements and high thresholds. Based on the above strategy, the walkie-talkies produced by it can penetrate all parts of the country.
In the process, we also cultivated a group of supply and marketing forces that knew the products and bravely went out of the house and sold the products. It is also this group of people who have been exposed to the emerging e-commerce model in Jiangsu, Zhejiang, and the Pearl River Delta. They can sell their home goods to all parts of the country through the Internet, so there is no need for young people to go out to work.
On the other hand, although Changfu Village is a county-level village, it has a certain geographical advantage. It is located at the junction of southwestern part of Quanzhou City and Fujian Province in Fujian Province. It is backed by Quanzhou Mother River Jinji Jinshui, and the “Quansan” Expressway and Fuxia High-speed Railway pass by the village. Such convenient transportation and logistics conditions have also laid a certain foundation for the development of e-commerce.
Thus, in 2011, the Nabo who first went out to work, brought the e-commerce model back to his hometown Changfu Village. It also coincided with the e-commerce dividend period. Relying on local supply advantages and deep-rooted understanding of product performance advantages, they have become the leader of local e-commerce. In the operating mode, some have sold the products in the online distribution mode after obtaining the authorization from Baofeng; while others have their own brands and purchased the goods from the local factories.
Undoubtedly, the development of the e-commerce model has also boosted the sales of Baofeng Electronics and other surrounding factories, which further promotes the local employment and the settlement of surplus labor. Taking Baofeng Electronics as an example, young and knowledgeable people can be responsible for technical work such as mechanical operations, and older people can be employed in the production and packaging department. Inside the family, as described at the beginning of the article, “One person opens an online shop and the whole family supports it.” Today, Changfu Village is one of the more representative of 7 Taobao Villages in Nan'an, and many experts and scholars in the industry have gone through the field. After the inspection, it also said that the formation of the Changfu Village model and the local leading enterprises such as Baofeng Electronics have a great connection between solving the problem of supply and solving the employment problem.
Second, innovative products to achieve differentiated competition
However, while e-commerce is being developed in every household in Changfu Village, it is also facing the increasingly fierce competition for homogenization. Since almost all of the goods come from the same manufacturer, some vicious competition is inevitable, and on the other hand, online sales have also caused a certain squeeze on their traditional sales channels.
In response to such a dilemma, Baofeng Electronics has taken its source and borrowed some methods from its peers to avoid vicious competition. The specific approach is to control the price order and differentiate the sales by means of a product line.
First of all, the brand authorized distributors to develop a minimum sales price with a certain profit margin to ensure that the market price mechanism is not disordered; secondly, innovative product design and research and development to provide dealers with more choice of goods, thus forming differentiated competition . For example, the product line is differentiated in function, and more colors are available for selection in the design. Therefore, each distributor has its own main product for sale.
In addition, Baofeng Electronics distinguishes between online and offline products. Chen Canhua introduced that there are currently more than 500 product categories in Baofeng, which basically can make the product lines of online and offline not coincide.
In order to improve the overall operational capability, the company adopts an appraisal system for distributors to strictly control the overall ability of the distribution team to give consumers a better user experience. Before authorizing a distributor, the company will understand and evaluate the distributors, and whether the team is professional during the inspection period, in order to eliminate the existence of professional teams. On the other hand, Baofeng Electronics has set up flagship stores in e-commerce platforms such as Tmall and JD. As a benchmark for online operations, it will guide distributors on how to conduct pricing and service strategies. The role of these flagship stores is also promoted by brand image rather than sales.
Of course, in addition to the distributors of Baofeng Electronics, Changfu Village also has a number of Taobao shops with their own brands. For this part of the business, due to the lack of experience in creating their own brands, and the related awareness is weak, the government is also actively guiding. For example, help merchants apply for trademarks, register brands, and carry out relevant training on brand building. Huang Jinxing, vice president of the Nan'an E-Commerce Association, said that the association is actively communicating with the government to provide “green channel” and fast service for trademark applications for those who want to be their own brands and want to have their own intellectual property rights.
Third, the government guides and builds an e-commerce development platform
Driven by such an atmosphere, the e-commerce of Changfu Village has become increasingly prominent, and in order to improve this process, the government and enterprises have joined forces to provide a better environment for entrepreneurs. For example, improve the logistics environment, conduct e-commerce training, entrepreneurship support and other projects.
Due to the wide area of Changfu Village, the road in the village is not very smooth, so it will cause a certain loss of personnel or vehicles during transportation. In this regard, Baofeng Electronics purchased a building in the industrial park in the village last year, which is dedicated to the online distributors, and at the same time set up a warehouse to achieve rapid linkage between sales and delivery.
As the leader of the village, Baofeng Electronics also actively exerts its own advantages and plays the role of “passing the band” to encourage excellent distributors to share their experiences with the villagers. In this regard, Chen Canhua said: "Only if everyone's ability is improved, Taobao Village's model will be better and better, and they can also drive the growth of corporate sales."
On the other hand, the government's functions are mainly reflected in the construction of infrastructure. Not long ago, Fujian Province issued an e-commerce support policy, which was issued to all counties and cities. In the future, it will allocate 10 million yuan to Nanan City for special funds for e-commerce development. The money is mainly used for the introduction of e-commerce teachers, the docking of high-quality resources, the development of e-commerce training and salons. In this process, the Nanan E-Commerce Association will also play a call for role, convene local businesses for demand aggregation, and unified training to address the needs of local businesses.
Lin Licheng, head of the Nanan E-Commerce Center, said that this year, the city government will take e-commerce as an important task and promote e-commerce development from four aspects. First, hire professional institutions to do a three-year action plan for e-commerce development. Second, it conducts online operations with large platforms such as Alibaba. Third, do a good job in electrician training. Fourth, cultivate the Nan'an E-commerce Industrial Park, and start from the project to promote the upgrading of the park's functions, and then expand the scale of the e-commerce park.
Through a period of practice and operation, he found that in the current e-commerce development process, the main problems reflected are: lack of training mechanisms, lack of awareness of group operations, and fierce competition for low-cost homogenization. Therefore, the association plans to do some resource integration for some Taobao villages with development potential and integration space, but also respect the market rules and the wishes of the villagers.
In this year and for a period of time, with the help of the Nanan Municipal Government, the local e-commerce association, and the tripartite cooperation of the leading enterprises, Changfu Village will enhance the e-commerce operation capability of the whole village through professional training, resource integration and project support. . In order to realize the professionalization and large-scale development of the local e-commerce industrial park, and radiate to the city to become a municipal-level e-commerce public service platform, the e-commerce park will become a gathering and upgrading center for electric merchants. (Source: "E-commerce Reference")