Big Deals Closed! HKTDC Sourcing Platform Aids Fujian SMEs to Secure Businesses

Due to the COVID-19 pandemic, some foreign trading companies in Mainland China are facing challenges in their manufacturing operations, logistics and transport. At the same time, surging costs of raw materials, supply chain bottlenecks and other issues are yet to be resolved, leaving much unrelieved pressure on foreign trading firms, especially the small-medium enterprises (SMEs).

In view of these obstacles, many Mainland cities are setting up pages on the Hong Kong Trade Development Council’s “ Sourcing” platform to promote quality products to overseas buyers and achieved concrete results, helping foreign trading firms to thrive amid the pandemic.

Fujian Jinjiang Sanli Engine Co Ltd was founded in 1983. Taking the advantage of China’s opening up, it gradually developed into a mechanical company integrating technology, operations and trading. It currently runs a 300,000 sq.m. manufacturing plant in Jinjiang which focuses on the production of lawnmowers, scooping various awards on innovative technologies and advanced enterprise.

To further expand its international business, Sanli Engine Co Ltd is dedicated to upgrading and transformation to meet online market opportunities. Apart from setting up a multi-lingual webpage that provides German, French, Italian, Portuguese, Spanish, Japanese, Korean and other language options, it also managed to secure purchase orders totalling USD170,000 from a Greek buyer via the Hong Kong Trade Development Council’s “ Sourcing” platform.

Sanli Engine Co Ltd sells its lawnmowers mainly to Europe, Australia, South and North Americas, with an average sales revenue of USD18 million in 2021.

Comparing with other similar e-commerce platforms, Sanli Engine Co Ltd Business Manager Ms. Fiona Chen believes that the “ Sourcing” platform is easy and convenient to use, and she pointed out that global clients are more keen on using online platforms to look for new products and new business collaborations than ever due to restricted travel during COVID. “Besides exceptional product quality and competitive pricing, we also timely communicate with our customers through the message centre feature on ‘ Sourcing’ platform to understand clients’ needs, provide good aftersales services, produce just-in-time, and guarantee product delivery on specific dates, all of which help us win the customers’ orders,” she added. Sourcing Assists Order Taking

Sanli Engine Co Ltd sells its lawnmowers mainly to Europe, Australia, South and North Americas, with an average sales revenue of USD18 million in 2021. According to Fiona, “At the most serious point of the pandemic, every industry suspended its operation with tourism, transportation, F&B and telecommunications being the hardest hit. Such suspension made customer liaison difficult and directly impacted marketing during the peak season. In addition, rising labour costs, raw materials and courier fees increases the overall enterprise costs, on top of shipping delays that may break the global supply chains. As a foreign trading firm, we need to adjust our marketing strategy in time too.”

As the company cannot attend physical exhibition under the pandemic, Sanli Engine Co Ltd is strengthening its online procurement and social media marketing, “LinkedIn, Facebook, Google, YouTube, VR, among other online channels, all help foreign trading firms establish their brands and increase brand exposure, so we must adopt a multi-channel approach of ‘traditional offline + new online’ – on one hand this can minimise enterprise risks and boost transformational efficiency; on the other hand, it also brings about product upgrade, creating a good corporate image and competitiveness. Right now, we are launching several petrol lawnmowers of higher CP value, in hope of lowering product costs to better meet consumers’ demands of high-quality products that are ‘value for money’.”

Handbag Factory Goes Online Under the Pandemic

Quanzhou Twinkling Star Handbag Co Ltd was founded in 1995, mainly manufactures a variety of backpacks and bags from series including business, travel, eco-friendly and waterproof, back to school, for kids, special functions etc. Its factory is in Quanzhou, Fujian, comprising of 16 production lines which can manufacture 300,000 products per month. The company’s products are sold mainly to European and American markets, accounting for 70% of its total sales volume. Customers include Umbro, Fila, Samsonite, Delsey and Boy London.

Under the pandemic, the company proactively tapped into online business and received overseas purchase orders via the “ Sourcing” platform. The company’s Sales Representative Ms. Leland Lyu expressed that a UK buyer liaised with the company via the ‘ Sourcing’ platform for several times and successfully placed a purchase order of schoolbags and pencil cases etc., amounting to a sum of USD80,000. The key to win the order is “timely reply and communicate, active price quotation and sampling, and effective communications in virtual meetings.”

Quanzhou Twinkling Star Handbag Co Ltd mainly manufactures a variety of backpacks and bags from series including business, travel, eco-friendly and waterproof, back to school, for kids, special functions etc.

Getting UK Order Fast, Boost Marketing to Increase Presence

According to the company, it will further increase its usage of the “ Sourcing” platform thanks to the UK deal, and it is uploading the latest product photos to the company’s page on that platform in order to increase the scope and volume of promotions to overseas buyers regarding its new designs. Comparing with other counterparts, the company thinks that “ Sourcing” is exceptional in that there are fewer Mainland Chinese competitors, more European buyers and a number of Hong Kong trading firms, increasing the chance of winning orders.

Amid COVID, many SMEs are facing operational challenges. Leland said: “The pandemic extended the factory manufacturing cycle, causing orders congestion and manufacture breakdown after the lockdown. On the other hand, surging raw material costs led to price increment, and as a result some overseas customers reduced their order quantity; fortunately, majority of customers proceed their payment without big issues.”

To retain existing customers, the company tries its best to meet customers’ demands on shipping dates and pricing while expanding new customer base for more business opportunities. Looking ahead, the company will continue to develop new products, attract more customers from large brands, and hope that the “ Sourcing” platform can bring about more product exposure.

Be Successful with HKTDC Sourcing

As the above cases show, having a company page on “ Sourcing” can help you maximize benefits of the platform and turn online presence into financial gains. Visit us now and start building your online trading hub! Sourcing is an established B2B sourcing platform that reaches over 2 million international buyers and features over 130,000 quality suppliers. Powered by AI technology, the platform has multiple innovative functions which seamlessly match suppliers with buyers and bridge demand and supply gaps. You can learn more about Sourcing here. 

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