Question

Topic: Strategy

Urgent: How To Compete Chinese In China?!

Posted by Anonymous on 9/20/2011 at 9:45 PM ET 500 Points
My friend told me this is a really good forum for marketing advices. So I’m coming here.LOL.

Well, my friend co-fund a crystal craft manufacture in China, which is the largest manufacture focusing on crystal trophy, award and crystal gift in that area---most famous crystal manufacturing base in China. His target is the largest crystal award, crystal gift wholesaler or distributor around the world. The problem he faced currently is B2B positioning strategy. Cos he never involved with any marketing knowledge before, he feel puzzled and don’t know how to position and differentiate the manufacture in the fierce local competition.

A little early time ago, I was going to suggest him to differentiate his manufacture as “Streamline your supply chain”, cos I think what the largest crystal wholesaler and distributor cares is their stable and high efficient supply chain, their back and if we take care their back and support them well, we can get premium pricing. This is our positioning. How’s that? One of friend recommend suing low pricing positioning. But I think it’s impossible cos Chinese manufacturers are so crazy sometimes they even use dumping to compete others. Does someone here can solve our problem and give us a excellent manufacturer B2B positioning strategy?
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RESPONSES

  • Posted by NovaHammer on 9/21/2011 at 10:29 AM Accepted
    Very confusing sorry;

    Please restate what you need us to do?
  • Posted on 9/21/2011 at 8:15 PM Author
    My friend currently had a big problem about how to positioning his manufacture in China. His factory is located in China, which is the largest crystal craft manufaturer in that area---most famous crystal manufacturing base in China. There are thousands of crystal craft manufacturers in that area, highly competitive. My friend''s manufacturer focus on producing crystal gift, crystal award and crystal trophy(Product similar in the below website. His target is the largest crystal award and gift wholesalers in the world. e.g The below wholesaler is our target.(https://www.crystalartusa.com/)

    So the most important thing for him is how to differentiate his own factory from others. Normally, Chinese people''s factories very like to use low price strategy. You name it, everyone like to say "My price is cheaper or reasonable" or "My prodcut quality is higher than others''. I think those two points are not the differentitors. But the thing is Chinese people are really really crazy, they even can use dumping prodcuts, they can sell prodcut in the price far way under the prodcuts cost just for getting desired deal. So my friends really conern about it. I''m here looking for advices to positioning his B2B factory.

    I gonna advice him to differentiate his manufacturer as “Streamline your supply chain”, cos I think what the largest crystal wholesaler and distributor cares is their stable and high efficient supply chain, their back and if we take care their back and support them well, we can get premium pricing. How’s that?

    Urgent! Really appreciate your contribution.
  • Posted by Peter (henna gaijin) on 9/21/2011 at 9:28 PM Accepted
    With so many manufacturers for every product in China, it does get hard for a company outside of China to know who to work with. Price is just one factor, but in many cases, finding someone who they are able to work with, able to communicate with, is trustworthy, etc. is more important.

    So, you need to figure out how you can differentiate yourself. Service (as in being easy to work with) is one way that may work. But just having a person in China who speaks English is not going to work. So this could involve expenses, such as having someone located in the US who the customer can work through to place orders. Or at least, someone with a local (to U.S.) phone number (such as by using Skype) who can answer the phone in good English would be a must, if differentiating on service is how you want to go.

    Quality is another possible way to differentiate, but this can take some time to prove you do have quality. Having a long return policy could help show your product quality push.
  • Posted on 9/22/2011 at 7:41 PM Author
    Thanks for your quick advice. It''s a good one. But i think i miss something. My friend just co-fund the factory and has 60% share of that company. The manufacture''s current manager (My friend''s partner) is a Chinese who is really capable for managing factory and do well. This facotry has become the largest crystal craft manufacturer focusing on crystal award and gift in that area. So is that possible we position our factory as largest crystal supplier of crystal award, crystal gift? Is it a good positioning? By the way, if we, in the meantime, position "Streamline your supply chain", how''s that?
  • Posted by Gary Bloomer on 9/26/2011 at 8:50 PM Member
    I've read this question now five times and I still can't fathom it.
  • Posted on 9/29/2011 at 5:28 AM Author
    Sorry to reply so late.. too much work currently.

    In brief, how to help the Chinese crystal crfaft manufacture (owned by my friend) to differentiate himself from his local Chinese competiors? Using leadership--largest crystal award, crystal gift supplier? Or using attribute--"streamline your supply as differentiator? By the way, 90% of Chinese manufacturers in my friend''s industry only advertise themself good quality or good price. I think those are not very good differentiors, according to marketing guru Jack Trout book "Differente or die". Besides, my friend''s factory is the largest in that area and his mainly target market is the largest crystal craft distributor or importor outside China.

    So the thing is how to help differntiate factory from others??

    Thanks very much!
  • Posted on 10/4/2011 at 8:37 PM Author
    Hey.. does anyone can offer me some useful hints? LOL Fast contribution appreciated
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