After the four factories that started construction in 2017 were successfully put into production in Africa, in 2018, BORDAR started the construction of a laundry powder factory in Tanzania, which is expected to be put into production in 2019, which will bring new growth points to the company.
In 2018, the national economy was under great downward pressure. BORDAR Group, however, through deep cultivation of the African market, the annual revenue reached 2.4 billion yuan, maintaining an annual growth rate of 30%. As one of the earliest gold miners in the African market, Wang Lixin, founder of BORDAR Group, has been deeply engaged in Tanzania and other African countries for 20 years. Under his leadership, the company not only achieved the first market share of Tanzania ceramics, but also became a leading enterprise in East Africa and South Africa. In the view of Lu Moudu, vice president of BORDAR Group, the secret of enterprises to maintain rapid growth for a long time is localization.
Local employees work on the production line at BORDAR Group's diaper factory in Kenya.
Localization helps enterprises develop rapidly
BORDAR Group is a comprehensive multinational group integrating trade and industry, the business covers ceramics, hardware, food, daily necessities and other industries. "Many Chinese companies also have operations in Africa, and the products we sell are not very different. The most important reason why we can do it is the localization gene that goes deep into the bones." Lu Moudu bluntly, although the headquarters of the enterprise is located in Foshan, but the establishment of the enterprise has a strong African brand.
As early as 1999, Wang Lixin, the founder of BORDAR Group, came to Tanzania with two containers full of western medicine for development, did not expect that the goods had just gone to sea, the local introduced the drug import must apply for a license, and the goods were all confiscated. Unconvinced Wang Lixin decided to stay to fight the lawsuit and try his best to recover the losses. A year later, the case was eventually won, but the goods were already "divided". In this year, Wang Lixin found through market research that Tanzania's building materials market was almost a blank. Sensing a business opportunity, he began to import building ceramics from Foshan and sell them in Tanzania, and quickly amassed his entrepreneurial wealth. In 2003, Wang Lixin set up a company in Foshan, which became the procurement headquarters of BORDAR Group. Today, BORDAR's trading business in Africa has also expanded from building materials such as ceramics and aluminum to daily necessities such as laundry detergent and diapers.
With the rising cost of domestic labor and other factors, in the past two or three years, BORDAR has expanded from pure trade to factory production, and has built production factories such as ceramic tile, hardware, diapers, washing powder, and corn flour in Tanzania, South Africa, Mozambique, Kenya and other places.
Lu Mousu said that whether it is doing trade or opening factories, BORDAR Group has always been consistent with the concept of "home culture", so that China-Africa employees can coexist harmoniously and local employees can realize value. Every year from July to September, BORDAR will organize activities for Chinese and African employees to participate together and feel the atmosphere of family. At the end of each year, the company's leadership also visits the homes of African employees.
At present, BORDAR has more than 1,800 employees in Africa, of which 80% are local workers. As long as local employees are willing to work hard, their performance is often even better than that of Chinese employees. At the annual meeting of BORDAR South Africa Branch in 2018, local Busi won the title of "Annual excellent Domestic sales".
Build a bridge to the sea for Foshan enterprises
For the African market, in addition to the steady implementation of the expansion strategy, BORDAR is from fighting alone to overseas group, for more Chinese enterprises, especially Foshan enterprises, to build a bridge with Africa.
In December 2018, Foshan Panhome brand product Exhibition and Experience Hall was opened successively in Tanzania and South Africa, attracting 90 Foshan Panhome advantage enterprises such as Galanz, Chigo, Jinitao Ceramics and Weiye aluminum. Both experience pavilions are operated by the BORDAR Group.
"At least a few million yuan has been sold since the museum opened." Lu Moudu introduced that they help Foshan enterprises focus on docking wholesalers, professional buyers or large volume buyers through models such as display experience, commodity wholesale, brand co-construction or agent cooperation. In addition, each exhibition hall has set up a professional operation team of at least 20 people, responsible for providing hosting, business consulting, overseas buyers and industry associations docking, publicity and promotion and other supporting services for enterprises stationed in Foshan. After enterprises obtain actual orders, BORDAR Group can also provide value-added services such as customs clearance and tax refund, foreign exchange settlement, bilateral guarantee, cross-border logistics, credit guarantee, etc., to form a one-stop cross-border trade service chain.
Africa is the focus of Chigo air conditioning's future development, in order to further build the brand, Chigo air conditioning signed up for the first time to participate in the Tanzania Pavilion and South Africa pavilion. "Local people in Africa have a high degree of recognition of Chinese brands, and the experience hall allows Foshan enterprises to participate in the exhibition, which can effectively reduce our communication costs with customers, and also make customers feel more secure." Li Biao, manager of Chigo Air Conditioning overseas market management Department, said that they mainly brought air conditioning products to meet the needs of the African market to exhibit, and these air conditioners have been improved for the environmental characteristics of unstable voltage and more mosquitoes in Africa.
"Africa is a big market." 'Through these two platforms, we hope to make Foshan a regional brand in Africa,' Mr. Lu said. Through three to five years of efforts, they hope to make the experience hall into a provincial or even national platform to promote more made in China brands to go to sea.
A map of Africa hangs on the wall of the president's office at BORDAR's headquarters in Foshan. Five countries - Tanzania, South Africa, Kenya, Mozambique and Ethiopia - have been painted with black squares - a sign that BORDAR has taken root in these countries. Thirteen countries, including Uganda, Angola, Cameroon, Nigeria, Ghana, Cote d 'Ivoire and Senegal, are marked with red triangles. "We hope to expand our business to all countries in Africa that are suitable for business in the future," Lu said, pointing to the map.
