HUSHAN Autoparts Inc. -Treat people and customers with sincerity to create a win-win situation | 45th Entrepreneurship Model Chairman Chen Yingzhi | Hushan Industrial Co., Ltd
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Hushan Industrial was founded in 1972 by the first-generation entrepreneur Chen Chunxie. It mainly produced door handles for sub-factories and opened up the Middle East and Southeast Asian markets through traders. When the second-generation entrepreneur Chen Yingzhi took over in 2004, the annual revenue remained at about 3,000. With a scale of tens of millions, Hushan Industrial has now become the world's largest after-sales repair door handle manufacturer, exporting more than 10 million door handles every year, and its revenue in 2021 will reach 1.26 billion yuan.
Have the courage to take responsibility and go all out to find the right market
"My father didn't let me and my siblings go to factories when we were young. He felt that this line of work was too hard, so he lived frugally and trained his children to study abroad." Chen Yingzhi mentioned that later because of his illness and old age, his father planned to The factory was sold. At that time, he had graduated from Harvard University's Department of Architecture and returned to Taiwan, where he worked in an office and helped with his family's business. In 2004, he went to the United States and Germany to see auto parts exhibitions, which opened his eyes. He discovered that after-sales repairs can also be listed and century-old companies, and the demand in the European and American markets has unlimited potential, so he volunteered to take over the family business.
In the first two years after taking over, Chen Yingzhi learned from scratch, taking various import and export trade and mold courses to learn about stamping, electroplating, injection molding and other production processes. He also began to do market research and bought many samples to study and develop new molds. , and at the same time persuaded his father to buy land in Ruifang to build a new factory. In September 2006, Hushan Industrial participated in the German exhibition for the first time. At that time, the factory had neither ISO nor TS certification, nor production management, purchasing, and quality assurance departments. Therefore, it missed orders from major American customers. However, the customer found a trader to help Hushan. Shan, after three years of adjustment and transformation, its quality has been recognized by customers, and as a result, it has received a large number of orders and its turnover has increased significantly.
Continuous innovation widens the distance from competitors
. In the next few years, Hushan Industrial will maintain revenue growth of about 100 million yuan every year. Chen Yingzhi pointed out that there are two important keys. One is to buy 10 plastic machines in 2010. The number of injection machines will be expanded to 25 in 2015; the second is to introduce an automatic feeding system to solve the problems of inconsistent quality and dust caused by manual feeding in the past, and to establish advantages in scale and production capacity.
Hushan Industrial faced a major crisis in 2015. At that time, one of the top three distributors in the United States came to Hushan. Chen Yingzhi even flew to the mainland to brief the customer. The customer was very satisfied; but after the quotation, Within a few days, an existing customer told Chen Yingzhi that he could not sell because the distributor was his customer and should purchase through him. "At that time, there were two voices in the family. One was that this was an order worth tens of millions, and the product could be sold to 6,000 locations across the United States, so it was a great opportunity to expand the market; but my father believed that existing customers should be satisfied and demand Think for the customers." Chen Yingzhi admitted that he was struggling at the time, but later decided not to sell. So the distributors turned to other Taiwanese and mainland manufacturers for procurement, and Hushan was also blacklisted.
Although he lost a big customer, he won the trust and full support of existing customers. Not only did he transfer all the orders originally given to other manufacturers to Hushan, but also all customers paid for new products; in order not to be caught up by competitors. , Chen Yingzhi accelerates investment and development of new production lines, and can develop nearly 1,000 items a year on average, with the aim of becoming a market leading brand. "At that time, in order to seize the market, the number of customer orders tripled. We worked overtime to make sure we achieved our mission." Chen Yingzhi mentioned that although it was a hard period, it was worth it.
Three years later, because the quality of the supplier was unstable, the products were few, and the production capacity could not keep up, the American distributor resumed cooperation with the original customer, which led to the rapid growth of Hushan's performance. Currently, Hushan is in the United States Chain stores have the largest market share, and their revenue in 2018 exceeded 1 billion yuan, which is 10 times that of the second place.
"One Dollar Philosophy" lays the foundation for listing and development
. Chen Yingzhi has taken over Hushan Industrial for 18 years. His business strategy can be divided into several stages. The first five years are based on price competition. "Others sell it for 50 yuan, and I sell it for 49 yuan." Yuan, this is called the "One Piece Less Philosophy", and we will do our best to splice orders and seize the market." Chen Yingzhi emphasized. In the second five years, we will compete at the same price, emphasize service, product quality and delivery speed, and persuade customers to purchase from Hushan at the same price. The third five years is the "add one dollar" strategy. The reason why customers are willing to pay more is because Hushan has a more complete range of products, can ship in small quantities, has a patent, and will be responsible for any problems no matter how many years. In the fourth five years, we no longer sell a single product, but a system. In other words, in addition to door handles, we also begin to build peripheral parts, such as reversing camera lenses. This is what Hushan is currently developing.
"The next stage is to go public." Chen Yingzhi pointed out that the global automobile industry is undergoing a century-old change, from traditional gasoline vehicles to electric vehicles and self-driving cars. If more resources can be obtained in the capital market, it can Seize more opportunities when the stock market wave comes, let the company continue to grow to a scale of tens of billions, or even a century-old enterprise, and profits will be shared with shareholders, creating a positive cycle.
