Walking into the workshop of Heng Xing Furniture Co., Ltd. (hereinafter referred to as "Hengrui Yixing") in Shunde District, Foshan City, a series of production processes such as cutting, pressing, edge banding, drilling, assembly, and packaging are proceeding in an orderly manner. , Trucks come and go to transport batches of office furniture to all over the world. "There are currently more than 80 orders received, and the construction period has been scheduled to November." said Long Wei, head of Hengrui Yixing.
Last year, Hengrui Yixing’s average monthly sales were only about 600,000 yuan. This year’s monthly sales began to exceed 1.5 million yuan in June, and at its peak it exceeded 2 million yuan a month, a three-fold increase over the same period last year. The company's growth against the trend in this major examination of the epidemic has benefited from the guaranteed quality, the motivation of employees and the direction for development.
Grab quality, new customers become "repeat customers"
In spite of the impact of the epidemic this year, Hengrui Yixing has a steady stream of customers. Old customers recommend new customers, and orders are changed into whole orders. "The quality of the goods is very good, and we are very satisfied." An African customer praised it after receiving the goods. Foreign trade supervisor Chen Yuting revealed that this is a new customer who has established cooperation during the epidemic. The order was placed after a month of talks. It is expected that the second order will be placed at the end of September.
Product quality determines sales. Hengrui Yixing was founded in 2010 and was mainly engaged in furniture trading in the early days. In 2016, the overall market situation of the furniture market was not good. Many furniture companies abandoned their factories, but Hengrui Yixing rented workshops and bought equipment to build its own production lines. President Long said frankly that looking back now, this is a correct decision.
How does your own factory guarantee quality? Mr. Long said that in order to check the quality of the source, he is responsible for the purchase of raw materials, which is also the advantage of small enterprises. The quality control of the production line is controlled by the business manager instead of the factory manager. After communicating with the customer, the business manager directly asks the workers to produce according to the customer's requirements, reducing intermediate links and improving production efficiency.
Motivate employees to enhance order advantage
Hengrui Yixing’s customers are mainly from Africa, the Middle East and South America. The biggest impact on foreign trade is maritime transportation. The speed of customs clearance has slowed down, resulting in orders not being delivered in time, a backlog of finished products, and at the worst, all workshop aisles are full of goods. In addition, the substantial increase in ocean freight has also discouraged many customers and delayed placing orders.
Delay in placing an order increases the communication cost of the salesperson. Zhang Jinlan, the foreign trade supervisor, said that some talked about four months before finally placing an order, and some talked about customers who did not place an order for six months. During the period of working from home in February, the company quantified daily work such as emails, development of new customers, and product updates into bonuses in order to relieve employees' life pressure and encourage employees to work. The employees expressed that they liked the practice of working more, earning more money. The incentive measures allowed them to find their job status at home and ensure continuous contact with customers.
After the resumption of work, the appearance of the employees was completely new. Chen Yuting said that quantitative rewards during the epidemic helped her develop the habit of making work plans every day, such as uploading 15-20 products, sending 150-200 emails, and developing 3-5 new customers every day. This reward policy has improved the work efficiency of colleagues, which she believes is also one of the important reasons for the increase in the company's orders.
Clear direction and long-term vision to develop office furniture
At the end of 2019, Hengrui Yixing cancelled its large exhibition halls and shops in Lecong Furniture City due to the poor furniture market. Affected by the epidemic this year, major furniture stores in Lecong have entered a cold winter, and many stores have closed. The keen and decisive decision to cancel the store has saved the company a lot of rent and labor costs to hedge against the cost burden caused by the epidemic.
Being able to be stable in the epidemic is also related to Hengrui Yixing’s non-domestic sales. Domestic orders are generally small in quantity, large in variety, short in delivery, and require a lot of inventory. Hengrui Yixing mainly exports customized furniture, which is low-cost, suitable for mass production, and not suitable for bulk orders for domestic sales. In 2018, Hengrui Yixing gave up after trying domestic business once. Chen Yuting said: "That kind of approach can only solve a temporary need, not Hengrui Yixing's long-term solution."
In their view, furniture is a traditional industry and cannot be taken too far. Especially for office furniture with low entry barriers and low profits, we must put our minds on a level, down-to-earth, and steady progress. During the epidemic, several factories around climbed up on the ground and then crashed down. "These companies are like setting off firecrackers. After a sound, there is nothing."
As a small and medium-sized enterprise, Hengrui Yixing's ability to survive the epidemic is not accidental. It is inseparable from the maintenance of product quality, the unity of employees and accurate decision-making, and ultimately achieve a breakthrough against the trend.