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​​​​​How does Baofeng can do on sales of 500,000




Thanks to the love of the goddess, let us blessed forever. There is a statue of the goddess Mazu located in Changfu village , Xiamei town Nan'an city, when you on the way to baofeng ,you always can see the beautiful statue .In order to build and protect this deity, baofeng also contribute a lot. Over the past 5 years, baofeng have developed very fast,and monthly sales have reached an amazing number,at the same time, this amazing number also caused a lot of controversy, so baofeng can not shake off the label “DUMPING AT LOW PRICE” , anyway, baofeng really changed the competitive situation of mid-low end market, how does baofeng can do it, let us see the following.

There are so much taobao shop in Changfu village, family mode is popular, They have a clear division of labor,  young guys are in charge of sales and shop operating , their wives are in charge of counting orders and filling the bill of express, and their parents are in charge of sending out the parcels. All the members work together.They are busy,but satisfied to their positions!

In recent years,  e-commerce has brought tremendous changes to Chang Fu village , but this change is subtle. The sources of Changfu village's shop in Taobao is different with some relying on agricultural products or various kinds of native products for the sale of goods, Changfu village’s shops are all from the same enterprise that is famous of the town of a production of two way radio Baofeng Electronics Co., Ltd.
Baofeng is driving the whole industry. Although the supply is facing homogeneous competition, but through a rational planning and leading role, Chang Fu Village, Taobao businessmen
achieve the differential growth, and through the local government, business associations, leading enterprises, To achieve the steady development of electronic commerce. Changfu village's shop in Taobao has its particularity, but also has its universal significance for reference.

1.The leading enterprises online search

Speaking of Chang Fu village, it had to mention the Xiamei town Nan'an City, As the birthplace of China's production of walkie-talkie, with " the hometown of walkie-talkie of china" in the world. According to incomplete statistics, currently there are more than 100 walkit-talkie enterprises in the local and national are operated by the people from Xiamei town. Baofeng Electronics Co., Ltd. located in Chang Fu Village,which is leading enterprise , according to the company's business director Chen Canhua introduced, Chang Fu Village 90% of the walkie-talkie from Baofeng Electronics, The business perfomance sales by e-commerce is more than 100 million! !

Bao-feng Electronics was established in 2001, at the very beginning it was just a team making walkie-talkie patch. Then from assembly independent production, to automated production!So the sales model was also from the self-sufficiency to the distribution model. At the same time, it also brought up the local walkie-talkie industry.
During the interview, Chen Can hua said to the reporter from the "electronic business reference," .As the company leaded in the automatic production very early,therefore it reduced the labor costs, so the price has certain advantages. In addition, the mechanical production can make sure the product quality, so until now Bao-feng electronics spends a large capital to buy production equipment every year.

As a manufacturer of equipment, Baofeng Electronic sales group is mainly civilian-based to the audience a wide range of industrial parks and other factory enterprises ,rather than military group with high technical requirements and high threshold. Based on the above strategy, the production of two way radio can penetrate all over the country.

During this procedure, Baofeng trained training a group understanding the products, who has courage to go out, and sell out the products! And it is thes people, who touthed the rise of the electricity business model in Jiangsu and Zhejiang, the Pearl River Delta and so on,and sell the goods from hometown to all over the country by the Internet.In such case the young people no need to go out to work!

On the other hand,Changfu viliage has a certain geographical obvious advantage although it is just a small villiage,which located  between  southwest and south of the junction of Quanzhou, at the back of Jinjiang river, along high-speed road “Quanzhou to Shanming” and high-speed railway! Such convenient transportion really push the development of e-commerce!

Thus, in 2011, the first wave of migrant workers, bring the electricity business model back to the home village of Chang Fu. That time it coincided with the electricity business dividend period. Relying on the local supply advantages, as well as product performance advantages of deep-rooted understanding, they become the leader in local electricity providers. In the operating mode, and some access to Baofeng authorized to online distribution model to sell products; while others own brand, from the local factory procurement group goods.

Undoubtedly, the development of electronic business model also enhance the sales of Baofeng Electronics and other peripheral products factory, which further promote the local employment and surplus labor solution. Baofeng Electronics, for example, young knowledgeable people can be responsible for mechanical operation and other technical work, the elderly works in the production and packaging department. In the family, as described at the beginning of the article, "One shop, the whole family to support." Today, Chang Fu Village is one of the more representative of the seven of taobao village of Nanan City, and many experts and scholars in the industry through the field after the inspection also said that the formation of Changfu village model with the local Baofeng Electronics with leading enterprises, not only solve the problem of supply, but also solve the employment problem, there is a great correlation.

Innovative products, to achieve differentiated competition

However, every household in Changfu Village, at the same time of developping the e-commerce, also faces the embarrassment of competition of the increasingly fierce homogenization.Due to supply almost all from the same manufacturer, some vicious competition occur, on the other hand online sales also caused squeeze on its traditional sales channels .
For such a predicament, Baofeng Electronics control from its source, and learn some methods from the industry's peer,to avoid vicious competition.The specific approach is to control the price order, and to distinguish the product line, so that distributors is to be  formation of differentiated sales.

First of all, for the brand authorized distributors, they develop a certain profit margins of the minimum sales price, in order to ensure that the market price mechanism is not chaos; Secondly, innovative product design and research and development to provide more goods to the dealer selection, and thus the formation of competitive differentiation . Such as distinguishing the function of the product line, and providing more choices on the designs,so that each distributor has its own main product sales.

In addition, Baofeng electronic line products under the line were differentiated. Chen Canhua introduced, at present there are more than 500 kinds of producut from Baofeng! It can make sure that products online and offline do not coincide.
In order to improve the overall operating capacity, the company take take the assessment system to distributors,and strictly control of the overall ability of the distribution team, to give consumers a better quality of user experience. In the authorized distributor, the company will understand and assess the distributors, to check if the team is professional, in order to eliminate the existence of non-professional team. On the other hand, Baofeng electronic itself opens flagship on Tmall, Jingdong and other electronic business platform, as a benchmark for online operations, to guide distributors how to fix price, service and so on. And the role of these flagship store is to promote the brand image,but not for sale!

Of course, in addition to distributors of Baofeng electronic , Chang Fu Village  also has many own-brand taobao shop. For these bussiness owners, due to the lack of experience in their own brand prompting, and the associated weak wareness,therefore,the Government is also actively guide. Such as helping businesses apply for trademarks, registered brands, and carry out brand-building of the relevant training. Huang Jinxing vice president of e-commerce association Nanan City, said the association actively communicate with the government to provide  the "green channel" and fast service to those who want to have their own brands and want to have their own intellectual property rights of trademark. 

Guide of government, build electronic business development platform
Under this atmosphere, Chang Fu Village, the commercialization of the increasingly significant, and in order to improve the process, the Government and enterprises also work together for the villagers to provide a better environment for entrepreneurship. For example, to improve the logistics environment, to carry out business training, business support and other projects.

Due to Chang Fu village is wide, but the road is not very smooth, so in the delivery of transport will be unconveince and high cost.So Baofeng Electronics bought a building in the industrial park in the village last year, to dedicat to the online distributor office, and set up sub-positions, to achieve rapid sales and delivery linkage.

As a leader in the village, Baofeng Electronics also actively play their own advantages, play the role of "transfer band",encourage the best distributors to share the experience with the villagers. Chan Chan-hua said: "Only upgrade everyone's ability, the model of Taobao village will be getting better and better and they can drive the growth of corporate sales."

On the other hand, the functions of government are mainly embodied in the construction of infrastructure. Not long ago, Fujian Province, introduced an electric business support policies, issued to the counties and cities in the future give Nanan City  the annual funding of 10 million yuan for the development of e-business special funds. The money is mainly used for the introduction of electricity business teachers, quality resources docking, to carry out electric training and salons. In this process, Nanan City, e-commerce association will also play a call to convene the local business needs summary, and unified training to address the needs of local businesses.

Lin Li Cheng,e-commerce center of Nanan City, said this year, the city will taike e-commerce as an important work, and promote the development of electricity providers from four sides. Firstly, employ professional organizations, do a good job in the development of e-commerce three-year action plan. Second, carry out online operations with Alibaba and other large platform. Thirdly, do business training. Fourthly, cultivate Nanan electricity industrial park, from the project to drive the park function upgrade, and then expand the size of electricity business park.

Lin Li Cheng,e-commerce center of Nanan City, said this year, the city will taike e-commerce as an important work, and promote the development of electricity providers from four sides. Firstly, employ professional organizations, do a good job in the development of e-commerce three-year action plan. Second, carry out online operations with Alibaba and other large platform. Thirdly, do business training. Fourthly, cultivate Nanan electricity industrial park, from the project to drive the park function upgrade, and then expand the size of electricity business park.
Through a period of practice and operation, he found in the current business development process, the problems reponsed to be: lack of training mechanisms, Baotuan sense of war is not strong, low-cost homogenization of intense competition. Therefore, the association will plan for a number of development potential, there are integrated space Taobao village to do some integration of resources, but also need to respect the laws of the market and the wishes of the villagers.

In this year and the next period of time, with the Nan'an city government, the local electrician associations, as well as the leading enterprises tripartite cooperation, Chang Fu Village will be through professional training, resource integration, project support, to enhance the village of electricity business operation ability . In order to expect the realization of the local electric business industrial park of specialization, large-scale development, and radiation to the city to become a municipal e-commerce public service platform, the electricity business park into electric business talent gathering and promotion center