First year’s foreign trade revenue was 620,000 yuan. Rooted in the High-tech Zone to lay a solid foundation.
In 2007, the local fitness equipment company Beian Company in Zhengzhou established itself in the High-tech Zone, adopting a dual-track model of “manufacturing + foreign trade” to embark on its entrepreneurial journey. In the first year, it achieved a foreign trade revenue of 620,000 yuan, laying the foundation for its subsequent development.
In the manufacturing sector
In the manufacturing sector, the company leveraged the foundation of the hardware machinery industry in the High-tech Zone and rented a 500-square-meter factory to start with a light asset model. Initially, it focused on the production of basic equipment such as treadmills and dumbbells, quickly establishing a production chain. Although the local component rate was only 58%, the core bearings needed to be purchased from Hebei, and the R&D investment was less than 2%, the company’s manager stated that this move was to prioritize ensuring stable and efficient production and concentrating resources on capacity integration.
In the trade sector
In the trade sector, the company set up an 80-square-meter office in the High-tech Zone, drew on the marketing experience of Zhengzhou Aorite, and relied on the Canton Fair to undertake low-end OEM orders from Europe and America. The “light brand, heavy production” strategy reduced initial costs, and the first-year foreign trade revenue reached 620,000 yuan, with a profit margin of 6%, verifying the feasibility of this business model. At the same time, it accumulated customer and foreign trade experience.
In addition, the company also joined the High-tech Zone Industry Association to obtain policies and industrial resources; it established cooperation with 3 local component factories to pave the way for enhancing the autonomy of the supply chain. The company’s manager stated that in 2007, it achieved a breakthrough from 0 to 1, and in the future, it will use the High-tech Zone as a base to enhance research and development and product added value, and move towards the high-end market.
