Aya's American Brand-Building Odyssey
Qizheng, based in Daliang, Shunde District, Foshan, specializes in manufacturing fans and pendant lights. Around 2017, Aya, while inspecting the South American market, frequently transited through the United States and discovered that America is "the world's largest ceiling-fan market," with an annual market of roughly 23 million units — half of the global decorative ceiling fan market.
The discovery led Aya and her husband Zhang Jiansheng to an important decision: to develop a local market in the United States. They commissioned a marketing professor in Tennessee to conduct market research, while also staying in American homes as bed-and-breakfast guests to get close to local consumption habits and cultural preferences.
They ultimately positioned the product as a smart ceiling fan, targeting households with incomes above $100,000 and open to new things. In August 2019, Aya launched the product on Kickstarter. The "early bird" pricing attracted a large number of users, raising more than $200,000. After a month of Facebook ad warm-up, the product officially went on sale. Through this, CARRO came to understand American consumer thinking and aesthetic preferences.
Zhang Jiansheng emphasizes that "in the United States, originality is the best approach — original design is the foundation of brand-building." Through forward-engineering development and continuous tracking of customer needs, CARRO gradually took root in the American market.
Finding the Business on the Road
Aya dreamed from a young age of traveling the world. She studied environmental protection and worked in environmental-impact assessment. "Qizheng" in Cantonese sounds like "standing upright" — a reference to integrity.
On a 2012 field visit to Pakistan, she found that local households lacked home appliances and reliable power, and suggested developing solar ceiling fans. South Asia has abundant sunlight and a shortage of energy, making this a real need. In 2016, Qizheng set up a subsidiary in Pakistan and established a ceiling-fan assembly plant.
But the Pakistan market eventually came to an end for two reasons: local enterprises learned the technology and competition intensified sharply; and exchange rates were extremely unstable, with thin margins unable to withstand currency swings.
Aya's New Chapter in America
CARRO originally relied on "product differentiation to build an online brand." Sales of 200,000 smart ceiling fans made it the top-selling smart fan brand in the United States. But as the online traffic dividend faded, growth hit a ceiling.
Some 85% of American goods are sold offline. Home Depot, Lowe's, and other mainstream home-goods retailers operate thousands of stores; Walmart has more than 3,000. Getting into mainstream channels requires three things: a product with real staying power that has passed the market's test; a brand that brings its own traffic; and a channel and brand that reinforce each other.
CARRO addressed pain points in the American ceiling-fan market. Installation costs were high (about $200), so they developed a simple installation solution. Competitors priced above $1,000, so CARRO priced at $200–$400. The product emphasizes environmental friendliness and energy efficiency, and it is compatible with multiple operating systems and communication protocols.
Recently Aya opened an offline showroom and a "general-merchandise retail store." After a few months, the data looks encouraging, and a second store is planned for 2024. In her view, "all distribution businesses come down to the relationship between supply chain and traffic."
Zhang Jiansheng's World Map
Two world maps hang in Zhang Jiansheng's office. He believes that "people everywhere in the world long for a better life." Aya has the dreams and values; Zhang Jiansheng has the product-architecture thinking. The two complement each other.
The US market and Chinese supply chains "together form the largest piece of the world market-economy puzzle." The US market is mature but its structure is settled, and room for innovation is limited. CARRO has faced patent lawsuits from American firms. Fighting a patent case costs $150,000 to $200,000, intellectual property lawyers bill $1,200 an hour, and cases usually drag on for 18 months or more.
"The more mature the market system, the more deeply entrepreneurial space is locked in." CARRO has the advantage of the Chinese supply chain, but the American legal system is also a kind of "dimensional compression." Zhang Jiansheng thinks small companies can survive in the United States because "their existence provides a little bit of innovative vitality to the base of American society."
Zhang Jiansheng now moves between China and the United States. He has gradually come to understand that one needs to learn to reflect, and to accept adversarial thinking. China in daylight, America in night — two countries of completely different cultures and institutions — flattened into a single plane through trade. He firmly believes that the Chinese people and Chinese culture are outstanding, and that Chinese people can make the best things in the world.
Aya, in turn, has moved from believing in the good, to seeking out the good, to creating and conveying the good through her products. She firmly believes that Chinese and American people alike are kind and honest, and that truth, goodness, and beauty should be the essence of commerce the world over.
Originally published: 36Kr · The Walker’s View · 2024-01-14 · Read original →
Originally published in the "36Kr · The Walker’s View" column. The author is Executive President of the Guangdong SME Development Promotion Association. For reprints or citations, please contact the author or the Association Secretariat.