Agriculture & Food

Mr. Xu of Liaocheng, Shandong, runs a monosodium glutamate factory. Because of the fierce competition in the domestic condiment market, he chose to develop the international trade market first, and then look for a breakthrough in the domestic market. In just one year, his net profit in foreign trade exceeded ten million yuan, and he also opened up a new business of customized packaging of MSG in domestic high-end western restaurants. Let's have a look at his story of creating wealth!

With the continuous progress of transportation and logistics, the yearning for food encourages people all over the world to pursue various condiments unremittingly, and promotes the vigorous development of international trade import and export business of condiments and the growing market volume. China is a large country of condiments, with a wide variety of condiments and more exports. In 2021, the import amount of Chinese condiments will be 240 million US dollars, with a year-on-year growth of 38.7%; The export value was 2.08 billion US dollars, up 32.2% year on year.

From the perspective of market scale, output, import and export of condiments, the demand side is increasing, and the consumption frequency and amount are also increasing. In recent years, the global epidemic has shifted catering consumption from eating out to home cooking, increasing the demand for condiments. As a newly needed product for people's livelihood, the demand for condiments is growing continuously in the post epidemic era.

Avoid fierce domestic competition and open up international trade market

Mr. Xu's factory is located in Liaocheng, Shandong Province, mainly producing MSG. At present, the market competition of the domestic condiment industry is fierce, the racetracks of the main categories are crowded, the production capacity is relatively saturated, and the centralized improvement continues. The domestic condiment market is basically dominated by big brands such as Haitian, Li Jinji, Xinhe and Taitaile. The development space of small brands is severely squeezed, and it is difficult to make enterprises bigger.

Faced with this dilemma, Mr. Xu thought of developing the international trade market first, building the brand, and then going back to fight for the market share of domestic condiments.

Mr. Xu decided to carry out foreign trade business, but he did not have relevant experience. He learned from his friends who are engaged in foreign trade that professional software can help newcomers to foreign trade and take the first step in developing customers. So he screened several popular platforms, contacted the staff of Huacheng Chuangzhi, and reached a cooperation with Huacheng Chuangzhi after a careful understanding.

First order twists and turns, product iteration and upgrading

It took Mr. Xu less than half a month from the beginning to the first order. This customer is from Sri Lanka. As it is the first time to cooperate, he first placed an order of 30000 dollars for water testing. The profit of this order is 173% higher than that of domestic orders, which makes Mr. Xu very happy.

However, after the order was completed, the customer received MSG, was not very satisfied with the product quality, and pointed out the problem. Mr. Xu did not expect that the requirements of foreign customers should be so high. If the product fails to meet the customer's requirements, either give up the order and customer, or face the difficulties and upgrade the product.

At the beginning, he complained to the after-sales service that foreign customers were difficult to serve. Encouraged by the after-sales service, he regained confidence and chose to face the difficulties. If you want to be a big brand and make money, you need to jump out of the comfort zone, more accurately and effectively meet the needs of foreign customers, polish products, and improve the core competitiveness of products, otherwise you will only be gradually eliminated by the market.

Mr. Xu spent more than three months continuously adjusting raw materials and debugging equipment, which was an extremely difficult process. There is no wasted effort in the world. The MSG produced by the factory finally met the customer's requirements in terms of transparency and integrity.

The smooth delivery of the newly upgraded products has not only won the recognition of Sri Lankan customers, but also won the trust of customers. The customer immediately placed a large order of more than 500000 US dollars, and then placed the order regularly every month to establish a long-term cooperative relationship with Mr. Xu.

Great success in foreign trade, feeding back new domestic business

It is a good thing for factories to do foreign trade and force them to transform and upgrade. The substantial improvement of product quality has greatly broadened the market, and is also of great help to brand building.

In addition to orders from Sri Lanka, Mr. Xu also received orders for 200 tons of MSG from Nigeria, US $120000 from South Korea, and US $30000 from Peru... In one year, the net profit of foreign trade business alone was close to 10 million.

With great success in export sales, Mr. Xu began to strengthen his efforts to layout the domestic market. On the basis of maintaining the original sales channels, he developed new businesses and provided customized packaged MSG for high-end western restaurants. It is precisely because of the successful experience accumulated in opening up the international trade market that he can quickly develop a new business of customized condiments for high-end western restaurants.

If we change to the previous situation, Mr. Xu can't imagine that he can directly connect with high-end western restaurants to achieve customized condiment cooperation. Now, he has opened up overseas markets with high-quality products, as well as numerous cooperation cases of western restaurants, which can also play a role in the fierce domestic market competition.