This is how small businesses usher in spring
Just as their peers were struggling, a small enterprise received over 20 orders every day, maintaining a monthly sales growth of "20%" and a synchronous increase in net profit. The 'Ouyi Miracle' tells us:
Reporter Wang Xiangfei/Wen Xiang Wenjun/Photograph
So far, when calculating industrial growth data in each region of Lishui, the following sentence is often added: growth is mainly driven by leading enterprises.
As of May, among the 4124 enterprises in Lishui, 2811 have annual sales below 5 million yuan, and at least over 3000 have annual sales below 10 million yuan.
These small and medium-sized enterprises constitute the vast majority of Lishui's industrial economy. Compared to industry leaders, they do not have strong economic strength, huge scientific research capabilities, or economies of scale. However, even behemoths may suffer from hunger and cold during economic crises; Similarly, there will definitely be small businesses that can welcome the bright spring scenery.
Ouyi bearings can be counted as one.
Spring here is quietly approaching without attracting too much attention. But it should never be ignored. Being small and dignified, surviving and gradually developing is the hope of the "largest majority" of Lishui Industry.
The Miracle of a Small Business
Wang Huawen has been living a very fulfilling life recently, and it is getting more and more fulfilling because there are more and more orders for Ouyi bearings.
In May, our sales broke through seven digits. In the first half of the year, the sales of Ouyi bearings were able to catch up with the entire year of 2008, quadrupling before the financial crisis in 2007. Compared to 2008, doubling the sales of Ouyi bearings in 2009 is definitely not a problem. As the chairman, Wang Huawen is very confident: "Of course, compared to 2008, net profit also needs to double
Since June, Ouyi Bearing has received an average of over 100 customer inquiries and over 20 orders per day. Since the beginning of this year, the sales of Ouyi bearings have maintained a monthly growth of over 20%.
It's too late to produce, it's really too late. "Mr. Wu, the deputy general manager in charge of production, looked happy and then showed anxiety." Now these orders, we have to wait until three months for full production
Under frequent overtime, the employees' wallets of Ouyi Bearing quickly swelled. The first thing to do when working overtime is for the company to issue overtime pay first. You can earn several hundred yuan in overtime pay per week, "said production worker Lao Cao
Even more rare is that the double-digit growth in sales is achieved on the basis of a stable profit margin. From Lishui to China, many bearing enterprises have started to fall into a vicious cycle of price wars due to a lack of orders. However, Ouyi Bearing is not. If reasonable profits are lost, even if orders are received, what benefits are there for the development of the enterprise? "Wang Huawen said.
Ouyi Bearing, which can create this "miracle under the economic winter," is not yet a large enterprise at least. This bearing enterprise located in the Tianning Industrial Zone covers an area of only about 20 acres and employs less than a hundred people.
But it was during this economic downturn that this "small" enterprise gained a great reputation: throughout the Yangtze River Delta region, Ouyi Bearing is well-known in the industry. Many customers specify the use of Ouyi bearings when purchasing mechanical equipment, "said Wang Huawen." Within one day of June 8th, we received three such orders. "In the field of woodworking machinery, the largest domestic manufacturer, Xinma woodworking equipment Co., Ltd., has been cooperating steadily with Ouyi bearings for over two years.
At the end of May, Wang Huawen established the enterprise website of Ouyi Bearing. On the homepage of the website, there are two particularly eye-catching slogans: "Selling well in China, going global".
Lishui Bearing Meets Test
In stark contrast, under the ravages of the financial crisis, the domestic bearing industry has actually suffered a considerable impact.
As an intermediate industry, bearings are sandwiched in the middle, facing fluctuations in upstream raw material prices, price reductions in downstream industries such as automobiles and machinery, and a decrease in exports. According to relevant statistical information, since 2009, the sales of world bearing supply giants Sweden, Germany, and Japan have decreased by more than 20% respectively.
The bearing industry in Lishui cannot be left alone.
There are approximately 300 bearing production enterprises and related companies of all sizes in Lishui.
In 2008, the estimated output value of the bearing industry in Lishui was between 600 to 700 million yuan. In the industrial field of Lishui, this is not a small number. Many people in Lishui are familiar with the annual output value of the bamboo and wood processing industry and the mechanical and electrical industry, which is only equivalent to or even below it.
However, the bearing industry in Lishui does not have much popularity, let alone a good reputation. This is mainly because the Lishui bearing industry has not formed a leading enterprise, and the overall development order of the industry is not very good, "said the person in charge of a member unit of the Lishui Bearing Industry Association.
A more disorderly phenomenon began to emerge. Starting from March this year, some Lishui bearing companies have started a vicious price war. Some bearing companies sell a set of bearings for 16 yuan, which is more than one yuan from the cost price. Some bearing companies sell bearings for 1 million yuan and their profits are not as good as last year's sales of 500000 yuan, "said the owner of a small bearing company.
In June, two Lishui bearing companies faced bankruptcy. In the eyes of many industry insiders, this may just be the beginning.
Where is the Breakthrough for Small Businesses
In the cold winter of the economy, how can Ouyi Bearing live a more nourishing life? Can the successful experience of Ouyi Bearing be replicated?
The method can be learned, but the core needs to be understood by the enterprise itself, "said Wang Huawen.
According to Wang Huawen's own summary, the "secret" for Ouyi Bearing to open up the market in the financial crisis is no more than three methods: participating in more exhibitions, promoting through the internet, and opening up new markets.
In fact, in addition to these three "secrets", there are two additional points to summarize the experience of Ouyi bearings: being enthusiastic about small orders and maintaining stable product quality. And this may be closer to the essence of its success.
At the end of May, Wang Huawen did two things to shake the entire company for a set of bearings. Because a set of bearings was returned by the customer, Wang Huawen was furious and immediately stopped production. He held a company plenary meeting and said, "How could such a thing happen to Ouyi? We have some bearings that cannot be produced, and we cannot say that the current product quality is world-class. However, as long as it is the product we sell, it must be of stable and reliable quality, Wang Huawen announced: stop production and rectify until the problem link is identified!
Afterwards, Wang Huawen deliberately instructed the salesperson to immediately send "one set of bearings" to each of the two foreign trade companies and one mechanical enterprise, and stated that "like orders worth several hundred thousand yuan, they must arrive within a week, and a follow-up call will be made one week later, ready to provide technical support at any time
We cannot despise small orders. Today's small customers may be big customers in the future. Now that we have helped them, a good cooperative relationship in the future will definitely benefit Ouyi Bearing. "Wang Huawen said," Compared to big enterprises, small enterprises definitely have no disadvantage in playing emotional cards. The key depends on how you do it
In mid April, Wang Huawen led his business team to return from the Shanghai exhibition, followed by a $30000 order flying from Europe. On the 19th, a representative of a Korean company will also make a special trip to Ouyi Bearing for inspection.
We didn't expect these businesses before we went. But even if we couldn't get a single dollar order, Ouyi Bearing must attend this exhibition. Now, all four major exhibitions in the domestic bearing industry, Ouyi Bearing, are participating, "said Wang Huawen, To participate in the exhibition, Ouyi needs to pay around 100000 yuan per year. From the perspective of most bearing companies in Lishui, this is not a small amount and may be risky. However, if you cannot let others know about you, how can you get an order
Accompanying the exhibition is Ouyi Bearing, which has started comprehensive "electronic marketing and promotion" on domestic e-commerce websites, bearing industry websites, and top search websites. This is another cost exceeding 100000 yuan per year, but the effect is very obvious. At present, a significant portion of the 15 foreign trade companies and hundreds of mechanical manufacturing enterprises that have long-term cooperation with Ouyi Bearing come from these two channels.
At the end of 2008, unlike the vast majority of Lishui bearing enterprises, Ouyi Bearing began to make every effort to open up two new markets: the northern market and the Vietnamese market. Up to now, Ouyi Bearing has become the only domestic bearing enterprise to use its own Chinese trademark in Vietnam, and through the promotion of its first customer in the northern market, Ouyi now has more than 20 customers.
Recruitment, listing, Ouyi Import and Export Trading Company has just officially opened for business.
For this new business, Wang Huawen has great expectations: "This will be the biggest growth point of the company, and at least it can increase the turnover by about 1 million yuan
The international market demand is shrinking, but for companies like us that target small and medium-sized orders, it may actually be an opportunity, "said Wang Huawen.
Unlike domestic sales, for bearings, there is a 13% export tax rebate rate for foreign trade. For the bearing industry, which can now maintain a profit margin of around 20%, which is considered a miracle, this clearly has great temptation.
For the bearing industry in Lishui, the more important significance of this move lies in "opening a new window". If this path can proceed smoothly, the trend of vicious competition in the bearing industry due to the shrinking market capacity may be effectively alleviated.
Small businesses can also have spring
one
There is no objection to the fact that large enterprises are all developed from small enterprises; Under the financial crisis, small businesses must be more difficult than large ones? Everyone has different opinions on this point. However, if the latter prediction is true, the conclusion drawn from further logical reasoning will be very bad: then, when the financial crisis comes, why bother starting a business?
Faced with increasingly fierce market competition, it is difficult for small businesses to grow. Under the financial crisis, it is more difficult for small businesses to grow. But in the financial crisis, small businesses may not necessarily be able to make a difference.
Large enterprises have technological advantages, while small enterprises have price advantages. Large enterprises have economies of scale, while small enterprises are more flexible. Large enterprises have market discourse power, while small enterprises only need smaller market space. Large enterprises have industry influence, while small enterprises also have their own network of contacts.
Moreover, small businesses may not necessarily be unable to create their own product features. Large enterprises will definitely have advantages in technology research and development, innovation, and product variety. However, focusing on their own production field, small businesses can also produce high-quality and reliable products.
In a context of sluggish market demand, such products with stable quality and affordable prices will naturally be popular, and may be even more popular than before the crisis.
This is the foundation for small businesses to welcome spring.
two
Large enterprises cannot abandon foreign trade, otherwise the pressure of foreign trade will shift entirely to domestic sales, and one shoulder cannot bear it. Small enterprises also need to take a share in foreign trade business.
In fact, many small enterprises have already gained strength when entering the threshold of foreign trade. The reason why many small businesses have not taken this step now may be because they are not familiar with or completely unaware.
This requires relevant active guidance. The reason is very simple, and it is the same for both large and small enterprises - the larger the space, the less crowded it will appear. With more participation, there are naturally more opportunities.
Moreover, in terms of participating in foreign trade, enterprises of all sizes actually have equal status. Everyone follows the same rules and enjoys the same export tax rebate rate.
It's just that big enterprises aim for big orders, while small enterprises aim for small orders. Moreover, for small businesses, a small order may be enough to satisfy them. From this perspective, the role of orders of different sizes may not necessarily vary in size.
Who can welcome spring? There are no fewer windows open to small businesses than to large ones.
three
Supporting the big and promoting the strong is a major measure in current economic work. This is certainly a market choice for maximizing resource allocation efficiency, but while "supporting the big", "helping the small" is also necessary.
The growth and even stability of small businesses may not make a significant contribution to driving output growth and promoting tax growth. However, helping a large number of small businesses means helping the vast majority of the industrial economy, at least for Lishui.
Moreover, helping small businesses is sometimes easier because it does not require significant resource utilization.
Supporting universities is beneficial for maintaining stability. Helping others is for tomorrow.
Don't forget to help the young when helping the big. Because small businesses can also have spring.