From 2012 to 2013, the sports fitness equipment company in the northern part of Henan Province took advantage of the cluster benefits to achieve manufacturing upgrades, initiated the construction of its own brand, and took significant steps towards international market expansion. The company’s development entered a new stage of branding and globalization.
A milestone breakthrough
In 2012, the manufacturing sector leveraged the advantages of the cluster in Zhengzhou High-tech Zone, increasing the local component rate from less than 60% in 2009 to 85%. The production cost decreased by 22%, and the supply chain efficiency significantly improved. At the same time, the first welding robotic arm was introduced, and the production capacity of commercial equipment increased by 40%, laying a production foundation for market expansion. The trading sector achieved a milestone breakthrough, registering its own brand “Beian”, and said goodbye to the single OEM model. With the help of Alibaba International Station, it expanded into the Southeast Asian market, expanding its office space to 200 square meters, forming a 12-person professional foreign trade team, and deepening the domestic market into 12 fitness clubs in Henan Province. At the policy level, the company enjoyed export tax rebates, increasing its foreign trade profit margin to 9%, and significantly enhancing its profitability.
In 2013, the company officially intensified its international expansion efforts. By participating in international sports equipment exhibitions, it pushed its products to the global market and successfully established cooperation with customers in Europe and the Americas. Foreign trade revenue achieved significant growth, breaking the previous regional market limitations and establishing a “domestic + global” market pattern. The company’s director stated that the manufacturing upgrades, brand emergence, and international layout over the past two years have injected core competitiveness into the company’s long-term development.
