The umbrella industry, with the characteristics of not complicated manufacturing techniques and affordable price, is a highly competitive world. To excel and make profit in this industry is not easy at all. Nonetheless, Guangzhou Huifeng Umbrellas has opened a new world by adopting the strategy of divergence.
Renovation in Advertising Umbrellas
Taking the Road of Characteristic Development
In the early 90’s, Mr. Tan who is experienced in marketing and sales saw the great potential of umbrella market and then made a decision to open an umbrella factory. He said, “ At that time, the umbrellas had a very common look. Good at marketing and sales, I took business trips to many cities, Beijing, Tianjin, Shijiazhuang, etc, and as a result, the sales soon surged.”
However, just a couple of years later, Mr. Tan started to feel stressed. In 1999, he observed the fierce competition in the umbrella market, with the small factories starting the price war and margins squeezed. “ Some small factories made profits by producing low-price and low-quality umbrellas while my umbrellas couldn’t. The increasing pressure in operation forced me to renovate and transform.” Mr. Tan said.
Since that time, many enterprises have showed a strong will in image publicity, and therefore the golden age beckoned for the advertising industry. Mr. Tan began to think about using the umbrellas as an advertising vehicle and exploring the market of advertising umbrellas. He shared his ideas with a client, who was racking his brains in finding the best way for product advertising. The client spoke highly of Mr. Tan’s suggestion, and quickly made the first order of advertising umbrellas.
Looking at the ready-made advertising umbrellas, Mr. Tan believed that it was a wise transformation.
New Driving Force from Cultural Originality
The Era of Customized Umbrellas
Huifeng Umbrellas has seized the big market of advertising umbrellas, which, however, became crowded within just a couple of years. Mr. Tan, a thoughtful person, began to transform the company again.
“ I find that some cups and clothes are customized, and perhaps my umbrellas can be customized as well.” This idea occurred to Mr. Tan, and then he led Huifeng Umbrellas to the fast track of customized umbrellas.
“Few people are doing the business of customized umbrellas. As soon as this idea was proposed, it was highly recognized by the market. Orders of customized umbrellas for school graduation, pet shop promotion, fan-club activities, wedding, etc. were made. Some people even printed their photos on the umbrellas. ” Mr. Tan said.
Compared to the ordinary umbrellas, customized umbrellas brought greater profits to Huifeng Umbrellas. Mr. Tan said, “In the past, we made profits depending on the quantity. Now the customized umbrellas created more profits, which have attracted increasing orders.” He hoped to push the customized umbrellas further up to a higher level.
Capture the Channel of E-business
Overseas Orders came one after another
In the production workshop, the machines are running, while the workers are carefully cutting, printing, assembling and packaging. “ These are the order of an American client; these are the Korean clients’.” Justin, overseas market manager of the company, was talking about the orders on the way. According to him, the increasing orders from home and abroad was credited to the rapid development of the E-commerce Team of Huifeng Umbrellas. He said, “The traditional trade model is still running, while e-commerce has helped us to attracted many clients from all over the world.”
Up to now, 60% of the sales came from e-business. What made Huifeng Umbrella more confident is that customized umbrellas have high technical barriers, which are not easy for most factories. “ Over the past few years, we have upgraded our machines three times. We have had many patents. We will put our advantages in the umbrella industry into full display.” Mr. Tan said.
Delicate pet umbrellas, gorgeous parasols, automatic umbrellas, souvenir umbrellas printed with pictures…In the office of Huifeng Umbrellas Company, there are different kinds of colorful umbrellas, making the office just look like an umbrella museum. Over the past few years, Huifeng Umbrellas has created a new world in the umbrella market by using small umbrellas 。