Max-INF refuses low-price orders

Recently, Max-INF (Ningbo) Baby Products, Co. Ltd, declined a child safety seats order from Italy. The reason given by the President Xu Lihong is that the price of the offer is not up to the companys expectations.

As a major baby safety seat producer and exporter in Ningbo, Max-INF designs and produces child safety seats for such globally well-known enterprises as Toyota and GM. In recent years, with an increasing number of countries and regions implementing stricter standards for child safety seats, Max-INF has received a large amount of orders. However, it is also faced with such problems as the upgrading of manufacturing standards, restructure of the industry and technological barriers.

Xu Lihong recalled that the company once maintained long-term cooperation with over 100 brands of about 70 enterprises from over 50 countries. However the average price of the product was only $20 or so and the profit margin was less than 20%. With all the workers breaking their back and the understaffed management, the company encountered frequently the payment delays and even order cancellations. .

Since 2012, Max-INF has started a new value chain to attract high-end clients with quality products and abandon low-profit orders. By increasing the unit price or shortening the order payment period, the company places its focus on developing high-end products and improving the technological added value of the products and thus has solved its problem of growing into a global leading brand. Currently, the child safety seat produced by the company has an average unit price of over $100, five times as much as it was three years ago.

To reduce the bad effects of the production shrinking caused by declining orders, the company has aimed at the domestic market since 2013 and developed independent brands for online and offline sales.

The sales structure transformation and the product structure upgrading have led to a steady 20% annual export growth rate and a 68% gross profit growth rate. Meanwhile, with the reduction of the client amount and the increase of the scale of orders, Max-INF has got an important say in the industry in terms of raw materials and production stage. By giving up the low-price competition, Max-INF has greatly promoted its exports.

LINK:	http://en.nbwh.gov.cn/art/2015/11/17/art_1325_76660.html...
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