Forced Into Africa, It Unexpectedly Ushered In The Blue Ocean Market.

Speaking of Africa always makes people feel a bit mysterious, but for Ningbo businessmen, this is a market that has long been familiar with. Ningbo Jinsheng Haida import and Export Co., Ltd. is a Yongcheng enterprise that has been digging gold for more than 10 years in Africa. Their Spin Brand CheTex can be seen in every country in Africa, and more importantly, the price of CheTex in similar products can be 10% to 15% higher than that of peers. The gross profit of the new product developed by the Ningbo enterprise can reach even more than 50%.

In fact, Africa has become the "hot spot" for Ningbo enterprises to invest. As of April this year, Ningbo has approved 100 investment enterprises in Africa, with a total investment of US $99 million 40 thousand, and 5 new approvals in the first 4 months of this year.

Forced into Africa, it unexpectedly ushered in the blue ocean market.

"To go to Africa to set up a company was also forced out." Recalling the original intention of going to Africa, Shi Zengchao, chairman of Ningbo Jinsheng Haida import and Export Co., Ltd., is quite emotional. The main African textile fabric company was established in 1998. It was the main way for Hongkong to turn to Africa again after its establishment. "At that time, our goods needed 8 links from domestic factories to the ultimate customers in Africa. Now, in retrospect, it means that every part of the business needs to be divided into profits."

In 1999, as the transparency of information began to change the way of trade export of many Ningbo enterprises. "Trade exports also changed rapidly in those two years. With the transparency of information and no borders, many of them began to be abandoned, and a Hongkong trading company was closed at that time. It is also true that in March 1999, Ningbo Jinsheng Haida set up its first branch in Benin, Africa. "In retrospect, if it did not go out then, it would probably have been abandoned by the market now."

And the market forced to enter has become a blue ocean, and turnover has begun to grow exponentially. In 1998, the company's export turnover was US $1 million 800 thousand, and since its opening in Benin, Africa in March 1999, its export volume has exceeded US $10 million in the past few years. The number of exports has increased rapidly in the following years, and the export volume of the company has reached US $145 million in 2012.

"To do NIKE in Africa"

The Ningbo enterprise now has 7 branches in 6 African countries, mainly in West Africa and East Africa. At present, every country in Africa can buy textiles from its own brand, and the price of CheTex textiles is more than 10% higher than that of its counterparts.

Shi Zengchao believes that Africa is actually not as chaotic as expected. It is very important to implement localization strategy if we want to grow and expand locally.

"When Africa started to establish a company, because of distrust of locals, basically all the big and small things were done by Chinese people, but finally encountered many problems, and even caused confrontation with the locals. After that, local people were used to manage the local people, and the effect was good. Some of the contacts between the government and the local people were mostly done to the local people, not only to save money, but also to let the locals feel that the company was a local company, laying a solid foundation for the company to open up the market. " Shi Zengchao said with a smile.

Now, Ningbo Jinsheng Haida import and Export Co., Ltd. has 105 employees in China, 30 employees in Africa, more than 800 employees in Africa, and 2 African companies in the company headquarters. Designer 。

For the future, the goal of history enhancement is clear: "my goal now is to accelerate the establishment of a sales network and channel covering the whole Africa. My goal is to do NIKE in Africa, and master brand, design and channel."