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A Mainland China Company Riding the Waves of Success in the Aluminum Processing Equipment Sector

By on July 10, 2019 in SME in Focus with 0 Comments

It is said “necessity is the mother of invention”. And it’s a fact that whoever capitalizes on a particular necessity and turns it into a profitable business is known as entrepreneurship at its best.

In the early nineties, China’s industrial revelation received worldwide recognition and the country catapulted as a major economy to do business with. During this time this Asian Superpower was moving forward in leaps and bounds and industries were sprouting all around its geographical borders.

One company in Foshan in central Guangdong Province, by the name of Foshan Shunde Kingtool Aluminum Processing Corporation Limited, saw an opportunity in the growing number of industries across China. The growth of the economy saw a huge demand in aluminum which was the predominant alloy used in construction. So was the need for aluminum processing equipment, metal cutting & CNC cutting machine, etc., was colossal to say the least.

“The aluminum door and window curtain wall is widely used in the construction industry, prompting us to develop and produce equipment for processing aluminum,” says Ms. Ada Cheng (Marketing Manager) of the company.

Within a year, the company noticed that the rest of the world was also moving forward with industrialization and subsequently there was a huge need for aluminum and other metal processing components in construction  industries, etc., in these nations too. Despite various hurdles, Foshan Shunde Kingtool Aluminum Processing Corporation Limited started exporting aluminum processing equipment to Madagascar. Surprisingly equipped with just an urge to excel and the sheer determination of the team, the company in just a year exported an entire series of machinery to this island country in the Indian Ocean more than 8000 kilometers away.

Ms. Cheng recollects the early days before B2B platforms and in general e-commerce which were at a nascent stage then. “Because e-commerce had then not become popular, it was not easy at first, and we used to promote our equipment through various online or offline channels.”

She recalls that “at the beginning of the business, there were indeed many difficulties, but the firm belief, and by not giving up, we finally succeeded.”

Ms. Cheng believes that today “the advantages of internet marketing is unparalleled to any other marketing tools, especially for overseas marketing. People all over the world can easily learn about our products through the network, which saves us time and most importantly purchasing costs.”

However she reveals that the “competition is getting fiercer and profits are relatively small compared to what they were a decade ago. Having said that because we always firmly believe in ensuring quality products and services, we have been able to ward off competition and our ever-increasing overseas client list is a witness to that.”

China, since the start of the country’s industrialization has been nurturing its SMEs as the country’s leadership understands the vital role they play in economic growth and in employment generation. Ms. Cheng seconds that, and goes on to say that the “government still provides assistance to SMEs, such as reducing tax burdens and other policies.”

In the context of today’s global economic slowdown, businesses globally have been affected and the situation in China is no different. Ms. Cheng acknowledges that the “main problem encountered by us today is the increase in procurement costs, due to increase in raw material prices, followed by increase in employee data, which has led to an increase in production costs.”

But this doesn’t hold back Ms. Cheng and her extremely motivated team. “We will continue to maintain effective online marketing, and will try to open up more online platforms to promote our products. For instance, our association with Tradeindia has been extremely fruitful because we now have access to more buyer information.”

Not surprising that her message to new entrepreneurs who want to start their business or have just started out is to “look for quality online marketing platforms to promote products, which it is very important in the context of today’s way of doing business.”

For more information about Foshan Shunde Kingtool Aluminum Processing Co. Ltd., visit: https://www.sdkingtool-machinery.com/

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