Chinese suppliers should be encouraged to explore the "Blue Sea"

Twoloop International Company is a service company committed to international outsourcing projects. It is the member of Automotive Aftermarket industry Association of America. The have successful experience of exploiting the Auto Aftermarket in America.

Entering China at the end of 1997, Twoloop set its Beijing office and committed to aftermarket business between America and China. Qinmei Wu, chief representative of American Twoloop Beijing office, told gasgoo.com that the ongoing global financial crisis will have positive influence on Chinese auto aftermarket sourcing. She also suggested Chinese suppliers should encourage themselves to explore the "Blue Sea", but not just blocked in meeting common demands under fierce price competition.

Gasgoo.com: Please give a brief introduction of Twoloop company.

Qinmei Wu: Twoloop International Company is a modern enterprise group of technology, industry and trade. It is the member of Automotive Aftermarket industry Association of America. It has now been eleven years since Twoloop crossed the Pacific Ocean from the United States to China.

Twoloop is engaged in introducing high-tech products and projects to China from US, and also helping promote China's superior-quality products to US. It is a trade platform served both Chinese and American customers. We mainly cover products of auto air-conditioner parts, brake pad, water tank and so on. Customers range from auto dealers, maintenance companies to a few OE suppliers business.

Gasgoo.com: How do you maintain your relationship with overseas customers?

Qinmei Wu: First, to reduce the risk of exchange rate. For example, we adopt the same monetary principle for exchange settlement.

Second, we and our customers share the same market concept and we learn to find fault from ourselves.

Third, Twoloop not only offer after-sales service, but also provide pre-sales service.

And, the mutual trust is very important. We should build this trust with our customers and help them to reduce risks.

Gasgoo.com: Will Twoloop increase or cut its sourcing amount in China this year?

Qinmei Wu: Our sourcing amount had reduced from the end of 2007 to 2008 due to the exchange rate between RMB and US dollars. But it has been increasing since the end of last year. Many American suppliers providing products we sourced went bankrupt, so our customers entrust us to outsource in low-cost countries.

Gasgoo.com: What are the biggest challenges you face when sourcing in China?

Qinmei Wu: Actually, the biggest challenge is communication when doing global sourcing. To be specific, communication challenge is in fact a concept problem. Chinese suppliers, especially big and powerful, generally favor quantity and price.

However, in a new situation, aftermarket business is filled with varieties and small batches. Though small batches are sourced in a time, the total quantity will be large. As manufactures lessen this year, the sourcing will be centralized, which resulted in large quantities.

Besides, the market sense is important. There never exist satisfied demands in the market. Suppliers should encourage themselves to explore the "blue sea" which is just included in the customers' particular demands.

Gasgoo.com: What are your suggestions for Chinese suppliers?

Qinmei Wu: Generally, we require the suppliers to offer certain certifications, such as blueprint, sample, test report of sample products and industry report.

Moreover, we pay much attention on whether suppliers has international business concept.