Success Strategies of Chinese Billionaires: How to Profit in Import-Export Business

Surprisingly, a young Chinese export entrepreneur achieved an annual sales of 140 million yuan with just 10 clients. How did he manage this feat? This article will delve into the success strategies of Chinese billionaires: How to make profits in import-export business？

Daring to Transform and Expand the Supply Chain Business

About ten years ago, Gu Qi embarked on the entrepreneurial path. At that time, he chose to operate on platforms like AliExpress and Amazon, primarily selling items such as toys, women's accessories, and headbands. Back then, the entrepreneurial environment was relatively relaxed. He opened four online stores without needing to pay a deposit or fulfill other requirements. All he had to do was upload product images to start selling.

In the beginning, he processed dozens of orders every day, personally packaging and shipping them, often opting for postal parcel services to save costs. However, as platform policies became increasingly stringent, he found himself needing to stockpile inventory continuously. He also faced the risk of infringement, which could result in frozen funds and refunds to buyers, adding significant pressure on him.

After careful consideration, Gu Qi decided to pivot his business and expand into the upstream supply chain, focusing on plush fabric products. As one of the first entrepreneurs in Changzhou's plush fabric industry to venture into foreign trade, he started with small consolidated orders, steadily accumulating experience, and eventually being able to handle large 20-foot container orders. Between 2017 and 2018, when a cooperating factory in Southeast Asia failed to deliver on time, it presented an opportunity for him. Since then, his business has seen substantial growth, leading to a leap in the company's development.

Shifting Market Strategies: Exporting to European and American Markets

In recent years, the export situation in the plush fabric industry has become increasingly challenging, especially with a noticeable downward trend in profits. Take Golden Doll Company, for example. Although it experienced rapid growth during the pandemic, starting from the spring of 2023, the growth rate gradually slowed down, failing to meet Gu Qi's expectations. By 2024, the actual order volume was even only about seventy percent of previous years. In order to drive business development, Gu Qi decided to personally visit Pakistan and Indonesia in February and March this year.

Gu Qi believed that for the long-term development of the company, attention must be focused on high-profit markets, with the European and American markets becoming his top choices. Instead of directly competing with large corporations, he chose one or two promising products as breakthrough points, aiming to open the doors to the European and American markets through them. His strategy wasn't about casting a wide net but rather concentrating on a specific area, gradually gaining the trust of customers and establishing a good reputation among them. As the products gradually gained popularity, Gu Qi planned to expand more product lines through these customers, gradually establishing a foothold in the European and American markets.

Gu Qi was well aware that even a slight increase in profits by raising the share of products in the European and American markets could significantly contribute to the company's revenue growth. Taking the company's current annual revenue of 140 million yuan as an example, if the profit could be increased by 5 percentage points with the same capital scale, the annual profitability would see a substantial improvement.

Engaging in Import-Export Business: Market and Customer Analysis are Key

When discussing the secrets to business growth, Gu Qi emphasized the importance of market analysis and understanding customers. "To ensure steady business growth," he said, "we must understand the performance of our products in global markets. For example, knowing which distributors in Thailand have partnerships with us is crucial information for us."

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Seizing Every Moment: Timely Analysis of Trade Show Customers

When it comes to international trade shows, Gu Qi is also an active participant. He plans to personally attend plush toy industry trade shows in Nuremberg, Germany, and Las Vegas, where the exhibitors are his potential customers. Gu Qi aims to establish connections with these potential customers through face-to-face interactions. His goal is not only to secure one-time orders but also to establish long-term and stable partnerships with them.

At the trade shows, upon receiving customer business cards, Gu Qi simply takes a photo and sends it to his sales team. Utilizing Tendaowaimao Tong's data, the sales team can send relevant information to his phone within minutes. This allows him to quickly understand which companies in China have business dealings with the customer, as well as this year's transaction volume, proving their genuine purchasing relationship with domestic factories. This provides Gu Qi with strong data support and helps them mitigate risks.

Maintaining Existing Customers: Ensuring Repeat Orders

"No matter what business you're in, integrity is paramount," emphasized Gu Qi. "I never allow any counterfeit goods from our company. If there are any defective items among the 800 pieces of fabric in a high container during loading, I would promptly remove them to ensure that every product meets the highest standards." He understands that while counterfeit goods may bring short-term profits, in the long run, they would tarnish valuable reputation. As the old saying goes, "A good reputation is more valuable than silver or gold." With this commitment, he attracted Southeast Asian customers who were drawn to his integrity, eagerly seeking collaboration.

Focusing on Major Clients, Pursuing High Profits

Gu Qi's success didn't happen overnight. His export business started from scratch, with every client being personally developed and maintained by him. Today, his performance has reached an astounding 140 million yuan. Throughout this journey, he gradually phased out smaller clients whose needs and principles didn't align with his. As his business expanded, he became more focused on major clients capable of generating higher profits. These clients, with annual procurement amounts reaching millions of dollars, are the result of his careful selection and cultivation, forming a crucial part of his business success.

Maintaining Existing Customers, Promoting Long-Term Cooperation

Gu Qi's customer base is stable and loyal, with most clients having an annual procurement amount exceeding a million dollars. One of his largest clients alone generates over $2 million in business for him annually. This client, one of his initial partners, has now grown into a major distributor. Communication between them primarily occurs via WhatsApp, eliminating the need for frequent phone calls, video chats, or emails, yet this streamlined communication is built on a foundation of deep trust. When new orders arise, they simply confirm prices and issue directives directly.

Promptly Addressing Issues, Providing Emotional Value

Gu Qi understands that timely response to customers is key to maintaining relationships. When customers encounter problems, he patiently explains the situation, alleviating their anxiety as much as possible and promising to resolve the issue promptly. He knows that respecting customers' feelings is crucial for maintaining long-term cooperation. He believes that doing business is not just about trading goods but also about providing emotional value.

Developing Precise High-Quality Clients

Firstly, it's important to understand one thing: major clients aren't short of suppliers. Therefore, rather than directly soliciting orders from them, a better approach is to become one of their alternative suppliers.

In the pursuit of major clients, we have adopted a proactive strategy. With the help of SaaS platforms like Tendata, we can access accurate information about potential clients and competitors. This information includes import-export records, customer emails, phone numbers, etc., enabling us to pinpoint target clients more precisely. Our business team proactively reaches out to these potential clients, engaging in communication and dialogue through various channels such as phone calls, emails, and social media.

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