New Luolan Machinery Co., Ltd, whose previous name is Ruian Gaoke Machinery, was established in 2006. As a professional manufacturer, they not only do manufacturing, but also do researching, marketing and offering after sales service. They supply quality equipment, effective and convenient solutions for cardboard box and corrugated box folding industry, printing and packaging industry.
The statics shows that, the average life expectancy of the Fortune Global 500 firms is 40 years, less than half of human’s. The number is even lower for Chinese top 500 firms, which is only 10. What is perhaps more surprising is the average life expectancy of all Chinese firms, only 3.9 years. However, New Luolan is still full of energy and passion, even at 12.
Like human beings, enterprise is also a living thing, which lives and develops according to its own rule. So how New Luolan survive in such cruel market competition with rapid grow rate?
What did they live on?
Compared with those small and medium-sized enterprises who struggles in dilemma, New Luolan keeps a growth rate of 15%-20% since the enterprise was founded.
At the beginning, profit and cost are not of most concern. Yafei Dong, general manager of New Luolan firmly believe that “word of mouth” is the most important thing that leads to the enterprise’s growth. Holding to the concept of creating value for customers, New Luolan regards product quality and customer service as the key to survival.
Anyhow, the concept is definitely correct, but the cost pressure may create a big challenge for those startups. Yafei Dong said, thanks to the help and support from upper enterprises, without which New Luolan cannot reach today’s success.
Effective service model
In New Luolan, each salesman must be familiar with products before handling business. In Yafei’s eyes, pre-sale service and after-sale service are equally important. The moment you reach client, you start the service. Salesman should reinforce the foundation and study continually to serve for clients at all levels.
Though facing so many competitors at home and abroad, New Luolan do not focus on promotion. The reality proves that old customers’ introduction is a more effective way to get new customers.
Indeed, market builds enterprise, not the reverse. As long as we improve products from the perspective of customers, we can get good return from market.
How to go further
Team and staff is the foundation for enterprise longevity. New Luolan is always dedicated to “family culture” , guiding the team to work hard with everyone pulling in the same direction. Since the foreign trade department was set, no one quit with dissatisfaction. The 0% churn rate is what Yafei feels most proud of.
