Encore Industrial: Doing Business in China … an Economy Transferred

A description in a nutshell of Encore Industrial is that it is an exclusive agent for industry and a business model to promote U. S. small manufacturers who wish to sell their products in China. We would like to introduce you to Jason Hsiung and Jim Wu, who have been working partners for 2 years. The partnership agreement between the two was signed in Aug./Sept. of 2015.

The company began to produce sales around March 2016. That was a lot of manufacturing. Small American manufacturers have a hard time selling in China which requires a lot of work. For an American to sell in China requires knowing quite a few things. This is where Encore Industrial comes in to bridge the communication gap and aid in closing the sale.

The Shanghai Consulate is excited and enjoys working with these 2 gentlemen. The same can be said for the small manufacturers that they have talked to.  Several have failed when working on their own until they ask for and acquire the help of Encore. Acting as a bridge between the companies for importing and exporting is their focus. They are an exclusive stand out in the industry of lubricants and specialty chemicals.

Jason states that there are 3 divisions in China; i.e. Export seeking U.S. customers for Chinese companies, exclusive commodity sales that take care of overstock for chemical companies by finding a home for the overstock in the chemical field overseas, and sourcing for small to mid-size U.S. companies getting to know how the system works. Encore can provide these services. Jason says that they begin by monitoring and getting a quote first.

For the first time, the Greater Houston Partnership Council is hearing how successful Encore has been in China. He states that Encore has boots on the ground. That is the difference in Encore and other companies that provide a similar service. There is trust between the partners, and then they set up a relationship here.

Jason says that he lived in China for 3 years before he began trading there in 2005. He grossed a high of $8 million in 2013. A shift in market changes caused them to transition into a joint venture. It became a new era for them when they registered the company. Their office opened in March 2016. At the time of this interview, they had been in their new office for only a month. They grossed $300 million US for the first year with 2 people and one of them only worked part time.    

Jason added that they have grown to 10 employees. He has had a plethora of businesses in China for many years. He ran a trade show in China where he talked to the secret manufacturers. In this way, there was no issue when the product got here. Requests for sourcing are in abundance. Any question or problem can be solved by Encore instantly overnight.  So, by making either the Chinese or U.S. more straight forward, the time to move quickly is reduced. Reputation, Efficiency, and Quality Control along with value is important. Efficiency is the main key. Those who are interested can access the service for free and just look for the next chance. Jason says

we have all 4 of those services in place to provide Chinese trade between the 2 countries. Other customers come to them to ask for sales. At the same time, American manufacturers are looking for partners like them due to their being trustworthy. Business systems in China are totally different.

Jason grew up in New York and moved to Houston in 1991 while keeping in touch with the Chinese community. By understanding the culture, they are basically a cushion between both cultures. On scheduling, for one culture it is a 3-minute change, and then the other says it will be 3 months. They come in and resolve the difference. Small companies want to find a trader, and most of them do not know the details or customer directly. Different older models sometimes work. New products or technology sets the business models, especially new technologies. The U.S. made it hard to compete in sales of the iPhone because of the high-tech demands.

Jason explained that the things we make that would sell in China would be a retail item for $18000, a small product. The company asks them to build this product. They will bring that equipment. They found a source for WISE that is developing a battery pack generator system. Jason sourced the battery for them. They accepted the quotation. It’s all about communication between buyer and seller. Encore was asked to manufacture a specialty car prototype built and delivered to Houston ports. They lowered their costs and a container of 400 units was the result for them. Another example, a local lady that had a dream to get her product built came to Encore through a referral because Encore offers multifunction. They built her first sample. Changes were made, then they proceeded with manufacturing and delivery. Everything that was expected and was executed on time. Encore has a manufacturer here that sells the overstock in the States. The overstock can be sold in China by finding a buyer for them. Encore tested it and agreed they had over 500 containers of overstock material. United has a direct flight. Beijing to China is typically the route utilized.

Both gentlemen expressed that they’re pleased that China Eastern Airline is going to start a direct flight later this year or this month.

 

By: Sonia Gumbeloit