Company Operations

Company operations include quality strategy of products, development strategy of new products, science and technology development strategy, talent strategy, marketing strategy, pricing strategy, competitive strategy and so on. The company operations of Zhongxingda refer to: quality strategy of products, competitive strategy, initiative strategy and marketing strategy.

1.Quality strategy of products:

The quality of products is the life and guiding light of company. Only when the company has a clear quality goal can the company ensure that all staff band together and make every effort to the company. And only when everybody cares the quality of products can the credit of the company be improved. The quality of products is the embodiment of each working procedure. If the product is not qualified in this procedure, then it is not allowed to enter into the next procedure.

The quality goal of our company is: the first pass rate of products above 98 percent,when customers have any questions, we supply our service 100 percent,

To achieve this quality goal, our company formulates some principles: scientific management, superior quality, continuous improvement, satisfaction to customers. We believe that quality of products is corporation life. Only when we ensure the quality of our products can me meet customers’ need and occupy the market. Therefore, we set up scientific quality management system and require our staff to be aware that customers are our God and quality is the demand of God. We improve quality of our work; accordingly, quality of products is improved. In 2009, our company obtained the ISO9001:2008 Quality System approval.

The fundamental spirit of our company is: Good quality, Good price, Good service (3G). Every member of our team sticks to this spirit and provides a service which is high-quality, unique creativity, application in time, doing the research elaborately, pursuing efficiency and persistent quality pursuit.

2.Competitive strategy

In the competition between companies, we must know our competitors’ well in products,

technology level, equipment, quality of management staff, raw material supply, sales and marketing, development strategy and other aspects. In this way, we can make corresponding competitive strategies to defeat others.

After we reformed our system in 2002, we aim at international and domestic market all the time. We investigate mat trades and find out that our competitors’ are different from each other in company strength, fund, technology and market share. At the same time, there is no standard in mat producing trades. Almost all companies imitate others’ products and sell in a low price. Our company decides to enlarge the scale of product in one hand. On the other hand, we improve the quality to become top company at home and abroad in a short time.

To achieve this goal, we propose a strategic idea: low-end products rely on quantity, high-end products rely on quality. By increasing market demand, maintaining existing market share, increasing potential market share, we keep our advantages and defend the offensive from the competitors. As a result, our domestic market share reach 31.7 percent and our products are exported to overseas countries and areas, including the United States, Russia, Brazil, India, Indonesia, Thailand, Turky, Germany, United Arab Emirates, Pakistan, Singapore, Korea, Xianggang and Aomen. Finally, we establish our leading position in the market.

3.Initiative strategy

Since its establishment, our company follows others, especially in technology and performance. On the other hand, we develop and strengthen ourselves by technology and quality. We fight for advantage with leaders and challengers in performance and service.

With companies more and more, the competition becomes fierce. Our company makes operating strategy in time, namely, base on modern technology, advocate green life, service global world. We establish product department, gather talented people, enlarge inputs to science and technology and improve equipments to make products that are satisfied to our customers.

In 1999, we introduced and improved PVC coil mat of Tangshan, enriching our products. In 2002, after our engineers studied the drawings of Korean, we made equipments by ourselves. Then we did experiments again and again. Finally, we successfully developed “Baolimei” series and overcame technical difficulties. In 2004, our engineers developed PVC S MATS. In 2006, our engineers developed double-stripe production line. In August,2007, we improved extrusion equipment. As a result, we occupied almost half the market of the world. In October,2007, we contacted with Plastic Institute of Dalian. By transferring technology, we obtained production process of grass mat series. After improving it, our products are exported to India and Malaysia and other foreign countries. In 2008, we developed production line of antifatigue mat. Since February,2011,as car ownership soared at home, our company introduced talents and technology to improve critical components. After hundreds of experiments, we successfully developed car mats which promptly occupies domestic market and becomes a new growth point.

                As our company places emphasis on research and development, sticks to principles of “good quality, good price, good service” (3G), bases on modern technology, insists on innovations and keeps industrial restructuring, we finally change our company from a small-scale workshop that imitates others to a big company. Our scale is largest, variety is most abundant, quality is best. We become the real leader in our trade. The next goal is to surpass American 3M series and move into indoors cleaning carpets production. As a result, we can ensure our company’s top position in mat trade in domestic.

4.Marketing strategy

We always bear in mind that no matter how we establish our image, develop products, improve technology and quality, subscribe to charity or provide local infrastructure, the ultimate purpose is only to sell our products and service so that we can bring our investment back and increase profit. Therefore, marketing is an important part of company operations, which is also a magic weapon to expand our company.

Zhongxingda is based on market demand initially. After the market research by sales staff, we found out the potential of mats market in domestic is quite huge. We developed products that meet the needs and found agents in some areas so the market is quickly opened. With the help of marketing department, we developed PVC S MATS, double-stripe, Grass Mats, Strong PVC Coil Mat. We stick to our traditional products. In addition, our marketing department found out mats market in 2011 and coordinate development department with a university of Qingdao. Finally, we developed car mats that can be freely tailored and became popular promptly in domestic market. Our company is optimistic about car mat market which is also a key marketing direction for years.

Our company sets up a sales vice president to be in full charge of marketing operation and establishes development department and production department so that we can adjust our production direction and marketing strategy timely based on market demands. According to sales experience, we have a manager of domestic sales department ( in charge of salesman of every region), a manager of export department ( in charge of all salesman and merchandiser), a manager of branch company ( in charge of staff of branch company and marketing) to form a three-dimensional marketing network. We establish eight branch companies in China: Linyi, Zhengzhou, Shijiazhuang, Xi’an, Lanzhou, Chengdu, Shanghai, Yiwu. Each branch company seeks dealers in a carpet way in their regions. Through their own storage and shipping channels, there is one-stop service. We establish an agent in the capital city of blank areas. In order to exploit the market, we employ large number of salesmen whoare familiar with international trade and through Alibaba, Made in China and other business platform to communicate with customers, receive and sign orders to enlarge commercial space.

To ensure the sales trend develops in a good situation, the company adjusts its sales strategy according to seasons. When the low season comes, we find out margin products.We have the incentive mechanism of giving away products according to sales rates of margin products. When we are in the high season, the products are in situation of short supply. We arrange production plans to ensure margin products never out of stocks to maximize the profit.

                To further strengthen online sales system, we appoint salesmen to track the service.

From the process of receiving orders, we carry out services under a coordinated process of

producing, delivering goods and after-sales service. After we send the products, we should

inform the customers when they will arrive. When the products arrive, we should make sure of some relevant information. We inform our customers of schedule in stages and give them some basic data of sales to help them expand the market. As for foreign market, our professional practitioners of international trade are in charge of different customers. They provide omni-directional service from receiving orders, making the production plans issued, packing to sending out products.