Home Categories political economy Case Study (Part 1): How to Survive in China, A Straightforward Comparison of Eight Major Brands

Chapter 24 Lovers: The Kingdom of "Not For Children"

In 2003, the US "Time" magazine reported for the first time a little-known Wenzhou boss Wu Wei in China.The Lovers Sex Health Care Company founded by Wu Wei's family has ranked among the top ten in the world in the same industry, and is called "China's sex toy tycoon" by foreign media.Since 1993, after ten years, the sex toys of Ailian Company have accounted for 60% of the domestic market share, 90% of its products are exported, accounting for 90% of the country's total exports, and have entered nearly 30 countries and regions around the world. area.The current annual sales are nearly 12 million US dollars.In China, where talking about sex is still shy, Wu Wei said that his 10-year entrepreneurship is not only selling sex products, but also selling his ideas: "People need sex tools, just like eating when they are hungry and drinking water when they are thirsty As usual."

Therefore, he designated the domain name of the newly established sales website as sn365, which means "365 days, every day sexneed (sexual demand)", and its Chinese homonym is "daily planet".Although the 35-year-old Wu Wei is not listed in China's 100 richest list, he is indeed building a "dream factory" of Chinese sex toys - an empire that is "not suitable for children". Every successful company has its own specific historical and geographical conditions, and Lover is not much different from other successful companies in Wenzhou: bold and tenacious, so that the output continues to grow, and the company develops gradually.Wenzhou, the earliest and most active soil of China's private economy, undoubtedly cultivated Wu Wei and his family's vision and ability to capture business opportunities.Although Wu Wei's products are very publicized, his entrepreneurship is very ordinary: in 1993, an accidental opportunity led them to enter the "sex toys" industry, which makes ordinary Chinese blush when they mention it.During a trip to Beijing, Wu Wei paid a visit to a sex shop in China. "We went on a field trip. The sex health products at that time were not as abundant as they are now, but the purchasing power of customers was very strong, and they could sell more than 4,000 yuan a day. It's just about the quality. It’s not high, and most of them come from underground factories or smuggled in.” Wu Wei said, “Wenzhou people dare to be the first in the world, we can do better, and this industry will definitely have a lot to do.”

So they began to research their own products. At that time, Wu's family was still making electromechanical equipment, and the equipment was just enough. According to the gourd painting, samples came out soon.The Provincial Food and Drug Administration looked at the "dongdong" that was sent, and it was a little dizzy. After all, no such device had been used in clinical trials before.Under the patient explanation, the Food and Drug Administration became interested, but at that time, sexual health care products were severely cracked down as "prostitution devices".Fortunately, the Public Security Bureau of Zhejiang Province believed that this would help reduce the rate of sexual crimes and gave them great support. They came forward to coordinate with the Family Planning Commission, the Food and Drug Administration and other departments to call for breaking through this restricted area.

After many efforts, at the end of 1994, Wu Wei's Adam and Eve Health Products Company finally obtained China's first approval number, production license and marketing license issued by the State Food and Drug Administration.But just after the production, there was a small "episode": Wenzhou Public Security Bureau received a report that someone in the jurisdiction was making "prostitution tools", and immediately sent the police to confiscate the product and seized the machine. "There is a lot of pressure, ranging from closure of the factory to imprisonment." Wu Wei still had lingering fears when he described the scene at that time.They sent the approval documents to the National Ministry of Public Security through the Provincial Public Security Department. After research, the Ministry of Public Security came to a conclusion: If there is no approval document, follow the regulations.But you already have the approval document from the Food and Drug Administration, so we won't bother you anymore.

After twists and turns, the factory finally had a legal status. "At that time, it was very simple, family workshop style, with few varieties and styles." Wu Wei said. The earliest means of sales promotion is distribution.They cooperated with Sinopharm Group and used Sinopharm's sales network to distribute the products to pharmacies in major cities. "We are very optimistic about the sales network of Sinopharm. It is so huge that the effect must be good." Wu Wei said. It turns out that in China, where sexual concepts are conservative, shy shop assistants can't justly introduce such shy products with imitation sex to shy customers, and both buyers and sellers are like thieves. "This is the concept at work." Wu Wei decided to start by changing the concept of people around him.

Wenzhou people's daring, vigorous and resolute style is vividly displayed.He immediately recruited a group of married people and spent several months on training.The first class is to talk about Chinese sex culture, gradually eliminate the traditional concepts of "sex shameful" and "sex mystery", and tell them that sex is a legitimate and normal need of human beings. "First of all, they need to change their ideas and accept and understand our products before they can sell our products." At the same time, the company opened the first local sexual health products specialty stores in Wenzhou and Shanghai, all using trained employees.He then sent experienced employees to replace non-professionals in several major city pharmacy counters. "In this way, we finally opened up a little sales, but the sales volume is not large. The company continues to lose money." He was very persistent and did everything within his power, but at that time the market climate did not change greatly because of the efforts of one person. .Although the landing of the Internet has brought them a glimmer of hope, and even allowed his products to have some contact with markets outside the mainland, but the lack of competitiveness of the products and the inability to establish overseas sales channels hindered his efforts to expand. The dream is still so elusive.

At this time, Professor Liu Dalin, a well-known Chinese sexologist who was commented by the American "Time" magazine as "one of the six representatives of the 21st century who lead China to happiness", gave him great encouragement.Liu said to him: "This is a glorious cause that benefits mankind." He waited with hard work and helplessness.In this way, he and his Adam and Eve company have been in the middle of "whether they make money or not, and whether they lose money or not" until 2000. For him, 2000 is definitely a year worth remembering in his life.This year, his persistence finally paid off.Opportunity came belatedly inadvertently: a Japanese tourist was "surprised" to see their products in a Shanghai specialty store, and introduced them to his friends after returning home, and the two sides quickly established a cooperative relationship under his recommendation .The Japanese side takes about one-third of the shares with technology and US$200,000.

"The most important and crucial point is that we cooperated with the Japanese side to solve the technical problems that have plagued us for many years, so that our products have reached international standards almost overnight, and passed the US FDA and European DE certification." Wu Wei said, "The real money can be said to start from here." Orders came one after another, and the company made a qualitative leap. Professor Liu Dalin's concept of sex based on human nature has been verified by practice in overseas markets that have gone further and wider.The market also taught Wu Wei a vivid lesson, which gave him new feelings.He learned that distributors in the United States provide "sex toys" to regular customers such as prisons, ocean-going fleets, and the military.His own concept has also undergone great changes, "I hope my products will contribute to the stability of society." He can now say this with confidence, "Sex appliances can save those who are on the verge of guilt due to sexual disorders. Marriage, lower rates of sex crimes and AIDS play a role."

In fact, Chinese consumers' perceptions of sex toys are gradually changing.Statistics show that there are currently 100 million migrant workers in China, and about 50 million people with disabilities. The increasing market demand has driven the upgrading of sex products and the growth of the industry.China has changed from an importer of sex products to an exporter.The sex products market has thus entered the era of "post-family planning products".The market has accelerated the development process of sex products, and in a sense changed people's concept of sex.People have gradually discovered that some sex products not only have the function of contraception, but also can prevent the infection of diseases and improve the quality of life.This shy business has been unknowingly accepted and recognized by thousands of consumers. At present, the annual output value of the entire industry is at least tens of billions of yuan, and it has gradually grown into a spectacular industry.

As a result, Wu Wei's persistence soon yielded obvious results.Two years later, in May 2002, Time Magazine sent a reporter from China. "The purpose is interesting," Wu Wei said. "In their eyes, it is incredible that such a factory can exist in China, which has backward concepts." After visiting the factory, the reporter believed that from the perspective of the scale and output at that time, Wu's company had actually entered the world's health care industry of the top ten.After an American reporter introduced this Chinese "sex toy tycoon" to the world, Wu Wei used "inadvertently planting willows and willows to make shades" to describe his harvest: "In the past, many foreign businessmen only knew about our products, but they didn't know where they were produced. Yes, as soon as the news was reported, they traveled thousands of miles and found Wenzhou according to the map. We have 24 hours of non-stop production, and we are too scared to accept orders.”

The Americans have inadvertently brought the lovers into a new stage of development. Wu Wei is very sober: Although he has entered the top ten, there is still a long way to go compared with world-class peers. "It got harder later on," Wu Wei said. "We are faced with the problem of how to establish a sales brand. If you only process supplied materials, technology and sales are in the hands of others, you cannot do the best." The rapid expansion of the market has ignited Wu Wei's ambitions accumulated for many years. He wants to do a big job and release the energy that has been pent up in his heart for nearly ten years.He decided to develop domestic and foreign markets at the same time. He hired a group of "American Hands" and "European Hands" who are familiar with the local conditions to establish his own overseas sales network. He also has agents in 32 domestic regions. Now he is planning to join shop cooperation.His new factory was put into use this year, and a new professional website "Daily Planet" was put into operation in October 2003.In addition, he began to develop his own new product, and the world-class overall human and oral health food "Qisheng" capsule has been launched. At present, Wu Wei and his father are in charge of "Love" Health Products Co., Ltd., responsible for production, and the second child, Wu Hui, is in charge of "Adam and Eve Health Products Co., Ltd.", responsible for sales.The third child, Wu Xiao, is in charge of the Shanghai branch, and has more than a dozen chain stores including "Aibang" and "Hongliang".A "sex toy empire" has begun to take shape. "We still have a lot to do. The Chinese market is just the tip of the iceberg, far from being mature." Wu Wei said, "Our goal is to build a world-class sexual health product company."
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