Zhengzhou Yongtai: Make Progress While Maintaining Stability

"In his thought, the big scale and large output value don't equal the strength. Without the solid foundation of technology and management, abrasives manufacturers are easily eliminated through competition. The real goal of Yongtai is to make progress while maintaining stability and the stronger comes first then the larger. "

Interviewee: Feng Eryong
Title: General Manager
Company: Zhengzhou Yongtai Abrasives Co., Ltd

When arriving at the cross of North Fourth Ring and Jiangshan Road, it is noteworthy that there is a neat layout, grand and newly established factory, Zhengzhou Yongtai Abrasives Co., Ltd. Zhengzhou Yongtai has been dedicated to develop and producing first-class resin grinding wheels. With the flourish development and rich experience, Zhengzhou Yongtai has possessed top management, advanced technology and equipment, and has had independent capacity of research and development. Their main brand "Yongtai" and "Bailian" have obtained recognition in abrasives industry owing to good quality and strong competition. 

Surprisingly, General Manager Feng is an easygoing and straightforward person. Meeting with the interviewers, his first sentence was not about the past honor or the reason why they can achieve such success. What he said is that "our next plan is to obtain two hundred or three hundred million output value in the next three or five years!"

After deep communication with General Manager Feng, the interviewer learned that in 2013 Zhengzhou Yongtai has brought a big gift to the market. They have developed a series of industrial type resin grinding wheels, which are mainly applied to the metal field and used in high-power devices. That resin grinding wheels have lots of advantages, such as the speed of 80m/s, super safe performance, excellent raw material and exquisite craft. All of that have improved working efficiency, and surpass other products in machining special workpiece. The moment that series of resin grinding wheels occurring in the market, they became popular among resin abrasive products. 

General Manager Feng told interviewers that before 2013, the market positioning of all their products are targeted for the mass customers, and their goals are to provide common products with high cost performance and good durability for customers. Later on, inspired by an accidental enlightenment, he came up with an idea that providing different products based on different market segmentation. With the reception of industrial type products, the "Sharp Type" products of Yongtai begin to have influence and market. Besides "Yongtai" brand, there is still a brand called "Bailian", which is for low and middle level clients specially. 

"Market segmentation" is no longer fresh marketing ideas, while it is relatively new concept in abrasives industry. This method assisted Yongtai consolidate their market share without any additional cost. When it comes to this new creation, Feng Eryong said proudly, "when we put single product into several segmentations, it is much easier for us to meet the requirements of clients, and our market positioning is more precise than before."

During the interview, what General Manage Feng repeatedly emphasized is "Our goal is to become stronger and stronger". In his thought, the big scale and large output value don't equal the strength. Without the solid foundation of technology and management, abrasives manufacturers are easily eliminated through competition. The real goal of Yongtai is to make progress while maintaining stability and the stronger comes first then the larger.