Zeng Yi: Leading an Industry

By staff reporter JIAO FENG

MY enterprise is really small, probably the smallest you have ever covered,” Zeng Yi said at his first meeting with China Today. Zeng didn’t mince words when describing his goals: “I want my company to be the top medical device producer and I want to become an industrial pioneer and leader. I am working towards this dream with concrete action. I hope that in 30 or 50 years, people will still use my products.”

Zeng was laid off in 1998 when he was 25 years old, just as his wife was about to give birth to their baby. The couple had only RMB 880 in their bank account. Zeng found himself at a crucial crossroads of life, uncertain about the future.

Fortunately, a friend who was managing an enterprise and knew Zeng very well lent a hand. Because he understood Zeng’s situation and trusted him, the friend contracted part of his company’s business to Zeng – to produce components and accessories for the TDP lamp, a medical device. This is how Zeng happened to become an original equipment manufacturer. He has now been producing medical devices for over a decade.

 

Zeng Yi.

In the early days, Zeng had no money, no factory, no equipment and no raw materials. His friend even fronted the money to get him started. With it, Zeng rented a work site and bought raw materials. Without money to hire employees, Zeng and his father made components themselves. “I couldn’t let my friend down who put so much trust in me. We had to ensure that our customers were satisfied with the products.”

Zeng backed up his words with decisive action. His factory has expanded to employ over 100 today, with annual production volume exceeding 100,000 sets of medical devices. Zeng considers the secret of stable growth to be the ability to guarantee on-time delivery of specific quantities of quality goods.

The threshold of the medical device industry is relatively low in terms of technology, which makes competition fierce. Some attract consumers with low prices. Certain clients have asked Zeng to cut costs by sacrificing quality. Zeng always refuses such requests. “That does not conform with our principles,” he said. “My name is behind my products, my enterprise, my future and my employees.”

To guarantee quality, his prices are steep compared to other competitors, but Zeng’s firmness has won him the customers that require top quality. “I am not exaggerating – the best medical devices in the industry come from my factory,” he asserted. “Now, most of our customers are famous brands, including some listed companies. Our products have been sold to about 30 countries, including the U.S., Canada, the U.K., Switzerland and South Korea.” Zeng is proud of the long climb he has made.

After a decade of experience in original equipment manufacturing, Zeng is creating his own brand. He established a research team to develop new products. Thanks to the reputation Zeng has built through his uncompromising quality, his newest products gain quick access to the market. “Sales volume of our brand reached 10,000 sets last year and we expect 30,000 this year,” he revealed. “We never lose sales agents who recommend our products because of our quality. Their customers never complain, return, or ask for maintenance service for our products, and retailers quickly discover that we save them a bunch of trouble.” So far, he has applied for four patents and his products were dubbed a “Famous Chongqing Brand” last year.

From manufacturing components for other companies to building his own brand, China Today asked Zeng how he feels about the evolution of his company. Does he seek greater profits? Will Zeng give up original equipment manufacturing to devote time to developing his own brand? Zeng’s answer was beyond our expectations: “In fact, small components are products too. It is important to guarantee the quality of every product from our factory so they can’t be replaced by products from competitors. If I can achieve this, I can set the price I want. Maybe ordinary consumers don’t know me, but I have considerable influence in the medical device production industry.”