Pearl River Delta Entrepreneurship Sample: How Can 9.9 Yuan Headphones Achieve Billions Of Sales?

In the Pearl River Delta region of Shenzhen and Dongguan, there are countless factories producing earphones to do OEM for overseas brands. The earphone industry has such a saying: almost all the earphones in the world are sent from Dongguan stone row.

After the challenge of "Shanzhai challenge", these OEMs began to seek the way of transformation that meets the market demand. Besides relying on the electronic business platform, forming the scale advantage of the sinking market is also particularly important.

"With the daily sale of the electronic commerce platform and the rapid development of the live broadcast, the actual sales volume of earphones has been leaping in scale. The mode of 9.9 packet headphones is also mainly targeted at the consumption demand of the two or three and four tier cities. In fact, with the rising cost of human resources in the Pearl River Delta, our main production plants have been transferred to Jiangxi, Guangxi and other places. At present, the main sales teams and quality inspection teams in Dongguan are. Guo Sheng, head of Dongguan sonic Electronics Technology Co., Ltd., told reporters on twenty-first Century economic report.

In Shek Pai Town, Dongguan, there are many enterprises like sounding electronics, seemingly unimpressive, but sales are amazing. According to Guo Sheng, told reporters that its revenue last year was over 100 million and its profit margin was around 10%. It is understood that the factory's "WRZ" Taobao customized headphones have already achieved sales of 1 million 500 thousand in two months. Last year, only Tmall store had achieved eighty million annual sales and the total sales volume of the whole network reached two hundred million.

From Shanzhai to private brand

Guo Sheng's pioneering story in just thirty is a microcosm of the Pearl River Delta industrial upgrading.

In 2006, the 16 year old Hunan guy Guo Sheng worked for a mobile phone accessory factory in Shenzhen after his family objected. After entering the mobile phone accessories industry, Guo Sheng, like fish and water, immediately entered the sales of mobile phone headset accessories, and opened the Taobao store to do the leading category.

At that time, the Chinese market was still a functional machine. NOKIA, Motorola, Ericsson, three foreign brands, occupied nearly 80% of the domestic mobile phone market. A large number of mobile phone manufacturing enterprises are concentrated in the Pearl River Delta, to do OEM for foreign brands. But with the development of industries, the Huaqiang North mode has also encountered bottlenecks, and it is difficult to move forward.

In the accessories industry, there is the same as the Shanzhai mobile phone "Huaqiang North curse". The brand chooses the manufacturer with the sole consideration of the price, and the manufacturer can only cut corners when he orders at a low price. Over time, a vicious cycle of low quality and low quality has been formed.

The most important material for earphones is loudspeaker (unit), wire and rubber. Guo Sheng once assembled a headphone with a unit price of 4 yuan on other platforms, and found that there were only 4 copper wires in it.

"This is a typical earphone made from Jerry building. The price is cheap, but it can only ring." Guo Sheng said. Therefore, in order to ensure the quality in the start-up period, Guo Sheng needs to spare most energy to control the quality of the supply chain.

Factories that build mobile phones are often labor-intensive industries. They eat orders, have strong dependence on orders and compete fiercely. The industry "crazy rush orders" wind up, regardless of production can not be enough, first order next. But this has always implied "adventure" for the brand side of e-commerce. If the manufacturer fails to deliver the goods, the brand will have to bear the loss and suffer from bad reviews.

In the past few years, with the impact of high-end smart phones such as apple and Samsung, the space of domestic mobile phones has been continuously compressed. Then, relying on the use of fans and hunger marketing to start the situation of millet, to destroy the trend, quickly occupied the domestic market, but also further to Huaqiang North's cottage machine market "ashes." But the emergence of intelligent machines has virtually nurtured a brand new market for mobile phone accessories. The demand for mobile phone shell, earphone and mobile phone membrane is rapidly enlarged.

With the development of the company's e-commerce market and the rapid expansion of the intelligent machine, Guo Sheng began to build its own accessories brand to meet the changing market demand.

In June 2016, Guo Sheng hired twenty employees in Shek Pai, Dongguan, and set up his own earphone factory. Because of the constraints imposed by the brand factories for several years, Guo Sheng's demand for self brand is very strong. At the same time, he set up his own headset brand "WRZ".

From electricity supplier to "intelligent manufacturing"

Guo Sheng has been doing Taobao for nearly ten years. In the traditional manufacturing industry, he felt the bottleneck of the transformation of small and medium-sized manufacturers obviously. Guo Sheng's headset factory transformation involves more than 10 factories and dozens of production lines, and the cost is still high. Prior to such a transformation is more large companies, big factories "patent", and relying on the electricity supplier and digital platform, Guo Sheng's enterprises have also achieved leaps and bounds.

Guo Sheng introduced that through its participation in the daily sale of Ali plant, the C2M transformation of the factory, access to the digital management system, through the system to monitor the procurement, stocking, production and inventory status of more than a dozen partners, to achieve real-time control of capacity and sales.

According to the director of the "sales and marketing department" of the Ali company, we report to the economic news reporter twenty-first Century, through the production data and sales data, and through the cloud computing of Ali cloud, "factory sales link" can predict the sales situation of the businesses in the next 8 weeks in real time, so that the merchants can make stock in advance and accurately arrange the production capacity.

Guo Sheng said: "before (factory) order is more conservative, a maximum of 2.3 million at a time, but now the overall control of information, dare to one million, the order quantity is different, raw material procurement price is also different, 300 thousand and 1 million, in the cost of up to 15% of the price difference. Before doing activities, 9 pieces and 9 packages were sold at a loss. But after the transformation and cost reduction, the activities of 9 packages and 9 packages can also run for a long time without losing money.

The improvement of production efficiency has made Kwok Sheng and its partners more closely connected. The closer the factory's production is, the lower the marginal cost of the product will be, and the lower the selling price will be. In addition, in the way of marketing, we should increase the investment in live broadcast operation platform and increase the development of the three or four line city sinking market by using fast hosts.

To solve the problem of production efficiency, we should pay more attention to product quality and make control the key to continuous growth of sales volume. In the production headquarters of Dongguan, Guo Sheng purchased a set of laboratory level testing devices to detect a series of indicators such as the number of earplugging, keystrokes, wire strength and low temperature. After a series of transformation is completed, a small earphone factory quietly ranks among the "intelligent manufacturing" ranks.