In Chaoshan, China, there is a traditional handicrafts, called crochet embroidery. One needle, one thread, in the hands of the Chaoshan ladies, through continuous operations, they become fashionable and diverse clothing, or exquisite handicrafts.
No factory, no machine, Yipin’s knitwear garment factory relies on the unique “Chaoshan model”, the factory’s centralized production is divided to every household, and then collected by someone in charge. How did founder, Wu Huixu link it into a mature supply chain and lead the small town’s traditional skills abroad?
Wholesale stalls monopolize offline trading, the traditional model becomes passive
Exquisite hook-flower works, clothing, home decoration will add a lot of color. The overseas market has a strong demand for this kind of products, and demand means that there is a market.
Before 2012, Wu had been working in a home-based workshop, receiving orders, producing and delivering goods. As time passes, she begins to feel annoyed at wholesale stalls for the unreasonable price reduction and dispatches. She believes that this traditional business model is too passive, the layers of profit is in a tight squeeze, the seamstress is completely at the bottom of the production chain.
Wu wants to change this passive situation, in 2012 she began to formally seek new ways, starting with the domestic e-commerce supplier. At that time, Wu Huixu did not quite understand the domestic e-commerce supplier, but he did not give up. In the first year, the online transaction volume reached 100,000 + and the offline investment was about 200,000 RMB.
To bring a hundred with a belt, a small team to promote large-scale production
Wu said that traditional foreign trade is often bulk purchases, orders concentrated in the hands of a handful of large wholesalers, channel operators, while undergoing large-scale production business risks and foreign trade market risks. However, the small-scale wholesale brought by cross-border e-commerce as well as the multi-frequency fragmentation procurement have reduced the pressure on large-scale production of enterprises and also dispersed the risks posed by the changes in the market.
What Wu Huixu needs to do is to contact several foremen, and then employ foremen to organize a batch of women to work. In this way, the whole production chain will continue to grow with the proliferation of more than one area.
Wu said that cross-border e-commerce can be understood as a cross-border combination of e-commerce and traditional foreign trade. Although there are many differences in terms of cost, platform, audience, operational efficiency and profit, For her, business is a natural thing, because demand stimulates production, and demand from overseas consumers for knitwear also drives the production of the hook-and-loop technique.