How Zhongce Rubber turns back to domestic market during overseas lockdown?

During the Spring Festival, the sudden outbreak of Covid-19 caused all tire companies to be caught off guard, they have been turning around and showing their abilities.

In 2019, the main business income of Zhongce Rubber Group Co., Ltd. was RMB 25.023 billion, ranking first among tire enterprises in China. Entering the new year, they have also faced the same tough problems brought by the coronavirus.

In March, the foreign sales revenue of Zhongce Rubber reached 960 million yuan, up 7.9% year-on-year (the same below). In April, the domestic sales revenue of Zhongce Rubber reached 1.87 billion yuan, an increase of 29.9%. The monthly sales revenue achieved the first year-on-year growth since the epidemic outbreak.

How did such a large-scale company - Zhongce Rubber react so quickly, find opportunities in danger and recover the losses caused by the epidemic?

On May 13, in the factory area of Zhongce Rubber Group Co., Ltd., there were two distinct scenes: in the domestic distribution area, workers were busy sorting out piles of tires, and trucks waiting for loading are connecting end to end, while the foreign distribution area was much quiet.

"Compared with the previous stage, it's totally different now. Affected by the Covid-19, the main foreign markets have been basically on shutdown since April, and the customer orders have been greatly reduced. Even with orders, shipping logistics is difficult to organize.” Ge Guorong said. Before that, the foreign market was just an important growth point for enterprises. Ge Guorong introduced that since the resumption of production, the first "alive" is the foreign market. In March, the foreign sales revenue of Zhongce Rubber reached 960 million yuan, up 7.9% year on year.

Due to the sudden cold in the foreign market, Zhongce Rubber immediately turned its focus to the domestic market and handed over a beautiful "Business Report" - in April, the domestic sales revenue of Zhongce Rubber reached 1.87 billion yuan, an increase of 29.9% year on year. The company's monthly sales revenue achieved the first year-on-year growth since the virus outbreak.

As the saying goes, a small boat makes a good turn. Zhongce Rubber, a "giant" with an annual sales value of nearly 30 billion yuan, how to achieve a rapid "turnaround"?

The first step is "focus on market development". Zhongce Rubber has dug up market increment in China at the fastest speed. The key lies in the scientific and technological innovation and product range expansion of Zhongce Rubber. 2019 was the "product year" of Zhongce Rubber. On the basis of high investment in scientific and technological research and development, the company has increased its efforts in product R&D, with 772 new specifications being put into production for only one series of passenger car radial tires. "Our products almost cover the whole tire market, which strongly supports the organic renewal and market development of our products." Zhongce Rubber R&D director said.

The second step is "transform production". With the sharp fall of foreign orders, a large number of varieties and specifications of Zhongce Rubber production line that are applicable to foreign markets have not been put down yet, and the production plan also needs to be rescheduled. In the face of these difficult problems, the brain of intelligent manufacturing industry of enterprises has made great contributions. "It's not just to upgrade an automated production line. We hope to create a new path for the sustainable development of enterprises by building a more complete industrial Internet platform." Shen Jinrong, chairman of Zhongce Rubber Group, said.

With this goal, Zhongce Rubber has built a closed-loop industrial chain ecosystem around the whole life cycle of rubber tire manufacturing. The flexible production capacity enables Zhongce Rubber to adjust the production rhythm quickly. The production line can automatically change the production plan by inputting the corresponding specifications on the computer.

The rapid market reaction, profound technical background, sufficient product accumulation and strong ability of production switch are the solid hard strength in the high-quality development of the enterprise, behind the decrease of foreign sales revenue and increase of domestic sales revenue of Zhongce Rubber.