CHANG RUI: All About Commercial Vehicles and Developing a Business in China
Publisher : MBA Office Nov.04,2016
Born in Shanxi, Chang Rui is a Shanghai-based entrepreneur who's the owner and creator of Kakebanchi Tech Co.Ltd, A company that works on projects related to commercial vehicles. He has big dreams for his company and is trying to grow his Shanghai operations nationally. Here he tell us a bit about his experience and expertise...
1.Why did you move to Shanghai?
I was born in Liuxian County, Shanxi Province. When I was in high school, I dreamt to study at leading universities in Shanghai. By chance, I entered Zhenzhou University instead. Although I found myself quite competitive in the local job market after graduating, I decided to come to Shanghai because I love the city. Later on I received my MBA from Antai College in SJTU.
2.What are the biggest challenges setting up a business here?
The biggest challenge for me was to leave a high-paying job to start my own business in the slump in the logistics industry and commercial wehicle tire sector, which is capital-intensive and asset-oriented. Since 2014, the industry’s gross margin level has been falling constantly and the vast majority of traders are losing their money.It was definitely a challenge to survive the slump, but I did it.
3.What is the greatest lesson you have learned doing business in China.
You neeed to make a good financial budget. It is critical to make objective and sufficient research on projects you’re about to carry out, such as the average daily cost, the possible operating revenue and the profit levels. What’s more, you’ll have to understand the fundamental profit model of the project. For instance, the upper limit of the daily cost and the floor level of the average daily revenue.
4.What makes your team unique?
With the exception of our CTO, all members of our team are from outside of Shanghai. They come from Liaoning, Xinjiang, Qinghai, Shanxi, Guangdong and so on. They left their hometowns and now work here in Shanghai with me, all with a common goal and passion for our company. I feel so honored to have their trust and I cherish them very much.
5.Who is your personal business idol?
I would have to say REN Zhengfei, the founder and president of Huawei. He started his own business when he was 43 years old and managed to turn a local company into one of the world's innovators in science and technology. He also came with a management solution for Chinese enterprises that's based on traditional Chinese culture for the first time in history. In this Cafor the first time in history. He had great foresight when making choices in business. In the sense, REN is truly a great entrepreneur.
6.Do you have plans to expand your business outside of China?
I would prefer to further enlarge and strengthen our business here in China. China not only has a considerable logistics capacity, but also has an enormous market of commercial vehicles. In the near future, we hope to gain the attention of foreign big enterprises when we become the best overall solution to the commercial vehicle market.
7.Which Chinese company do you admire the most and why?
Alibaba. because it is the world's best and fastest growing e-commerce enterprises. It creates a new business model and changed our consumption habits.
8.Where do you see your company in five years?
I hope to see my company in over 70% of the logistics distribution centers in China.