BOB AND WEAVE: Chinese hair product giant uses African factories to dominate local markets

 Localization

Besides expanding its sales network, Rebecca set up factories to manufacture hair products in Africa. The Nigeria and Ghana operations began in May 2011. "These factories supply products for Central and Western Africa. The manufacturing cost and the transportation cost are dramatically decreased because of them," said Zheng.

Workers in the factories are recruited from the local population. According to Zheng, more than 3,000 local employees staff Rebecca's factory in Nigeria and Ghana. Apart from some senior management staff and technicians sent by the Chinese parent company, middle-level managers were all locals. "We also launch training programs to improve local workers' skills and management ability," said Zheng.

Zheng believes that at the early stage when a company goes abroad, its main task is to promote the products. However, the ultimate goal has to be integrating the parent company's philosophy with local culture to build the branch factories' distinctive enterprise philosophy. "It is a tough road, but it is what we have been doing," Zheng told ChinAfrica.

The company is also an active supporter of charitable causes, putting something back into local communities by donating hair products to social campaigns.

Innovative approach

Although a leading brand in African, even in world market, Zheng, as the chairman of Rebecca, has always kept a strong sense of crisis. "The competition is fierce. We have to be innovative in management, design and promotion to meet the challenge of market changes," he said.

Zheng said people tended to think products of lower prices were more suitable to African markets. But actually there are more potential demands for high-end hair products. What Rebecca has achieved is proof of that. The sales of such products have become a new growth point for the company in recent years. In the future, Rebecca will strengthen its efforts to design high-end hair products. It will also set up two more factories in Tanzania and Namibia and produce lower priced hair products locally while importing high-end products from China.

Africa has become Rebecca's second largest market after North America. The sales volumes in Africa increased by 40 percent in 2011, much higher than the growth rates in North America and Europe, 10 percent and 28 percent respectively. Zheng estimated that the China's domestic market will emerge as the largest one in the next three to four years, and Africa will exceed North America to keep its second rank.

The company is on an arc of success and is bold in its future success predictions.

"The future four factories in Africa will bring about an annual sales volume of $200 million. And I believe the products imported from the Chinese parent company will bring another $200 million," Zheng told ChinAfrica.