Successful case study: How companies can achieve profitability through China’s import business

Successful case study: How XX company can achieve an annual growth of 200% through China’s import business
I. Company background
Company name: XX Trading Co., Ltd. (anonymous)
Industry: Home furnishings retail
Initial pain points:

The local supply chain has high costs and the product profit margin is less than 15%;

Consumers’ demand for high cost performance and innovative design cannot be met;

Lack of stable supply to support business expansion.

II. Strategic transformation: Targeting China’s supply chain
Market research and product selection

Select high-quality Chinese suppliers through channels such as Alibaba International Station and Canton Fair, focusing on the “environmentally friendly home furnishings” segment.

After comparing 10 factories, select 3 partners with ISO certification and flexible production capabilities to reduce the minimum order quantity threshold.

Cost optimization

China’s procurement costs are 40% lower than local ones, and the gross profit of a single product has increased to 35%;

Adopt FOB trade terms, cooperate with logistics service providers to optimize the sea freight consolidation plan, and reduce transportation costs by 20%.

Risk Management

A third-party quality inspection agency (such as SGS) was commissioned to conduct pre-delivery inspection, and the defective rate was reduced from 8% to less than 1%;

Clear intellectual property terms were specified when signing contracts to avoid infringement disputes.

III. Key Achievements
Profit Improvement: Imports reached $5 million in the first year, and net profit increased by 200%;

Market Expansion: With price advantages, products quickly entered 5 new regional supermarket chains;

Brand Upgrading: The innovative product line designed in China led to a 45% increase in repurchase rate.

IV. Experience Summary
Precise Product Selection: Choose non-standardized categories (such as smart homes) with technological advantages in China to avoid price wars.

Relationship Maintenance: Visit suppliers regularly to establish long-term cooperation trust and obtain priority in the property rights.

Policy Utilization: Apply for RCEP tariff preferences to further reduce costs.

Industry Inspiration:
The “Made in China + Local Brand” model can quickly open up the market, but it is necessary to balance supply chain efficiency and risk control.

Expandable direction
If you need to highlight the transformation of e-commerce, you can add the case of “realizing light inventory operation through cross-border e-commerce (such as Amazon, TikTok Shop)”;

If you need to emphasize B2B services, you can show the win-win model of “providing overseas distribution channels for Chinese suppliers”.

If you need more specific industry cases (such as food, machinery, electronics, etc.), please add details!