Shanghai Senlian Wood Development in China

Shanghai Senlian Wood Development in China

Market size related information

  • Total operating:More than one billion yuan
  • Industrial output values over 500 million yuan
  • 80 percent of products exported to international markets
  • Exclusive rights in the Shanghai region, making New Zealand pine logs domestic sales grew more than doubled and accounting for half ofthe total market in Shanghai
  • 90% of the products produced by the three manufacturing companies of Senlian is exported abroad
  • 3 billion RMB of total sales volume, with 66.53 million US dollar export sales, realizing 35.45 millionRMB in 2006
  • 1 billion RMB of total sales volume, industry output surpasses 0.5 billion RMB

Sub-companySenda: leading company in the industry; Shanghai export top 50

  • Plywood exportation accounts for 62% of the similar products in Shanghai
  • Manufacture 13000000 different kinds of plywood, consuming more than 100000 cubic meters of timber resources using more than 100000 cubic meters of YIyangzuorui wood, which account for 80% of the plywood manufacturing.
  • Residues processing contributes to revenue of 6,000,000 annually

Customer behavior

Competition comparison

Competitive shifts and strategies

1, Establish marketing center(with only 20 wise and experienced talents)

à good outcomes: after 2008 financial crisis gain sales growth of 38.17% and sales 额18.41%

Scientific marketing based on market analysis

  • Channel (domestic): as branches in large-scale imports of timber hub ports and cities (Zhangjiagang, Suifenhe , etc.), liaison and processing plants.

2, Creative marketing

  • Make New Zealand pine key variety and create “overall distribution and proxy mode”;

3, Improve risk prevention capability

  • Standardization;
  • Re-enact operation process and export agents operating procedures;
  • Make ERP management of operational process

4, Trade Information System

Develop monitoring tools

àAdjusted operating varieties, drastically reduced the amount of African timber business by up to 80%àWithstood market risk

5, process innovation

  • Develop timber sub-process handling , plywood surface color can be made shallow to deep, timber does not distortand other new technologies

Some possible advices

  • Close attention on change of theglobal sphere and of domestic government policy
  • Deeper understanding of domestic demand
  • Enlarge sales suitable timber type
  • Expand agent sales channel in input
  • Maintain financial strength by accumulating strong capital

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