Eupa Business Miracle Reveals Taiwan Capital Development Path

On the island of Taiwan, people who speak of successful entrepreneurship in the mainland will be vividly described as "South Eupa, North top new".

After fifteen years of hard work, Xiamen Eupa, one of the first Taiwanese invested enterprises to invest in the mainland, has risen rapidly from an unremarkable small company to an internationally famous small appliance giant.

The success of Xiamen Eupa is not only a legend of individual efforts of Taiwanese businessmen, but also a classic supplement of cross-strait economic advantages.

In, Eupa grew up in the Huli industrial area, with 82 employees and an annual turnover of 600 thousand US dollars. 1988 Xiamen grew up in the mainland.

In 1993, it was restructured into Xiamen Eupa industrial Limited by Share Ltd and successfully listed on the B-share market in Shenzhen. It has become the first wholly foreign-owned B-share Listed Company in the mainland with a capital amounting to 148 million yuan.

In 1993, Eupa China market headquarters was set up in Shanghai.

In 1995, Shanghai Eupa was set up as the two branch factory.

In 2000, Xiamen Eupa Technology Co., Ltd. was established.

In 2001, China ranked 139th in the 500 largest import and export enterprises in 2001, and ninety-fifth of the 200 largest enterprises in China.

In 2002, the core of Eupa world factory development strategy, Zhangzhou Eupa started construction in July, and will be put into operation in the first quarter of this year.

With a total investment of 120 million US dollars, the new Eupa factory in Zhangzhou, which occupies 1 million 600 thousand square meters, will create a huge world factory and provide world quality products for all parts of the world.

It is estimated that the annual output value will reach US $600 million by 2007.

In December 20th of 2002, Eupa celebrated the 15th anniversary of Xiamen in the unique way of "sports meet".

More than 10 thousand Eupa employees gathered in the city sports center, singing the spectacular scene of "Eupa song", so that Wu Cankun, chairman of Eupa group, was filled with emotion. Eupa has also been running in Xiamen for 15 years.

In the year of 1988, when Mr. Wu Cankun came to Xiamen with almost $900 thousand of his family's money, he might not have expected that his dream trip in the mainland could have such a brilliant achievement.

In the year of Xiamen, Eupa had only 82 employees, with a turnover of only 600 thousand dollars; however, fifteen years later, the two figures increased by 134 times and 571 times respectively.

According to the information provided by Eupa, - in 2002, the number of Eupa employees in Xiamen was nearly 11 thousand, with a turnover of $340 million.

Its registered capital reaches RMB 676 million yuan, and its operating income in the mainland occupies more than half of the total annual turnover of the group. Its output has reached 35 million units, covering more than 100 countries and regions in the world.

At the same time, the "small appliance kingdom", which is listed in three places in the mainland, Taiwan and the United States, has been born.

Wu Cankun, the chairman of Eupa group, has a lot of regrets: "in the 15 years of Xiamen, Eupa has made great achievements."

The magnificent scenes that led a group of people to run factories in Xiamen are still vivid.

We have grasped the good opportunities for China's reform and opening up. We have made use of this opportunity to create our own history. "

Eupa is located in Xiamen. When the Xiamen special economic zone was established, its infrastructure was relatively backward, and its industry supporting capacity was still very weak, but governments at all levels poured great effort into it.

As far as the approval of the land plant is concerned, and the maintenance of the factory pformer is very small, the government departments concerned will always lend a helping hand whenever there is any difficulty.

In 1993, Eupa Xiamen listed in Shenzhen B shares and became the first wholly foreign owned listed company in the mainland. This is another key to Eupa's development in the mainland.

After 3 months of listing, Eupa's "China market domestic sales headquarters" was set up in Shanghai and quickly set up business points in 29 large and medium-sized cities throughout the country.

In 2000, Xiamen Eupa issued 5000 shares of B-shares. At present, it is actively preparing to apply for the issuance of B shares to A, further enhancing the competitive advantage of small household appliances.

Yang Wenfang, the executive vice president of Eupa for 15 years, said, "at present, the annual output of the Eupa grill and electric iron is ranked first in the world. In the United States, there is an average Eupa - made grilling in every 3 families.

On the island of Taiwan, people who speak of successful entrepreneurship in the mainland will be vividly described as "South Eupa, North top new".

The first leg of many Taiwanese businessmen's visits to the mainland is Xiamen. "

It is understood that Xiamen is one of the most concentrated investments by Taiwanese businessmen to the mainland, with more than 2000 enterprises in Xiamen and Taiwan.

Relying on the local strength, Eupa has begun to do research on Eupa, but not willing to make the OEM OEM production. In 2000, it invested 15 million US dollars to set up Eupa Technology Co., Ltd.

It is understood that Eupa has nearly 500 design engineers in the world, and has gathered nearly 200 design talents in Xiamen.

In 2002 alone, nearly 180 new products were launched.

Every year, the company invested heavily in 5% of its annual turnover as R & D funding.

The R & D center of Xiamen focuses on the functional design of the latter part of the product, pforming the technology and realizing the final product.

Xiamen's brain power is based on Eupa's future development strategy.

At present, the European and American markets, which have been occupying the absolute dominance in operating revenue, have entered a mature stage after several years of rapid growth. The market is approaching saturation. At present, only 10% of the Asian market will sell well. Eupa will mainly battle the great Asia region in the future, especially in the mainland of China.

Now, Eupa's business mode has changed from the original OEM (OEM) to ODM (self-developed OEM). Meanwhile, the self created brand OBM (self created brand) has made great progress in the Asian market such as the mainland, Japan and Taiwan. The proportion of OBM has accounted for nearly 10 percentage points.

With the new model to measure the market radius, Eupa has been acting frequently since the end of 2001. First, the market headquarters in the mainland changed its course. After that, it made a major adjustment to the domestic distribution mode, and began to cancel the national business offices and replace the "big dealer agent system".

All these two actions convey a strong signal -- making the mainland laugh at the cake.

Yang Wenfang pointed out that in order to change the separation of headquarters and production bases in the mainland market, Eupa decided to move the market headquarters to Xiamen on the basis of consumer oriented product research and the development of the mainland market.

At the same time, Eupa decided to adjust its domestic marketing mode, encourage large dealers' agent system, and encourage bigger cities to live in their respective regions. The headquarters of Xiamen, through vertical integration, should strengthen the centralized and unified control of the headquarters, so as to improve the market reaction speed and service quality.

It is understood that after the adjustment of the business mode, the headquarters of Eupa China market immediately handed over the report on the overall profit of domestic sales in the second half of 2002.

"In the turnover of Eupa company in Xiamen last year, the share of the mainland market only accounted for less than 4 percentage points."

Yang Wenfang said: "this year, we plan to achieve domestic sales of 240 million yuan, and strive to increase the proportion of domestic sales to 10 percentage points in the future."

Xiamen has built up a "world factory" to build a new market in the market, while Eupa group has begun to build a bigger goal -- the world factory.

Following the establishment of second manufacturing bases in Shanghai in 1995, Xiamen and Eupa invested $120 million in 2002, and built third and the largest manufacturing base for small appliances in Zhangzhou, Zhangzhou, Xiamen, which is adjacent to Zhangzhou, the Zhangzhou Industrial Park of Eupa.

The project started in July 2002.

It is estimated that the output value will reach US $700 million after 5 years.

In 2003, Xiamen Eupa planned to lock in its turnover by US $470 million. By 2009, the annual turnover of home appliance manufacturing will reach 12 billion 500 million yuan, and it is expected to become one of the largest manufacturers of small and medium household electrical appliances in the world.

In addition, it is known as "Eupa future development paving stone", the total investment of 150 million yuan Eupa technology glass factory, the first phase of the project is also officially put into operation in Xiamen.

All this shows that Eupa is deeply rooted in the same land with the same origin in the mainland.