The key is to be simple, natural and reminiscent – by Mr. Zhangjiagang

Host: Does Elgin have new products in this Expo?

Mr. Zhang: Yes, we promote our new products according to the current trend. We focused on plainness several years ago. But from this year we will transfer our products to classicalism. Nowadays the idea of design is from plainness to classicalism. As a result, some products are out of date. We promote our new classic products. The former products are plain but not simple. As we notice a lot of hotels and restaurants have changed: the floor in the lobby has transformed into Spanish floor tiles; the furniture has also developed into classicalism. Most of our products are classical.

Host: New products need to be accepted by customers.

Mr. Zhang: Last year I found customers from Ireland and New Zealand were interested in our stairs while some domestic customers from Guangzhou and Shenzhen showed interests in our classic stairs. They said that they would order.

Host: There are few stairs companies in China, especially those which are specializing in it.

Mr. Zhang: Yes, Elgin is the first company which introduced stairs and DIY mode into Chinese market. The traditional stairs are made by carpenters and plasterer. We made our stairs after decorating the rooms. The technical problems stairs have can be only solved when business is extended. 70% to 80% Chinese designers know everything but stairs. Most customers complain on stairs. They don’t understand, neither do Chinese designers. That’s why stairs are not included in China’s stairs building course.

Host: Even those specialized ones would meet competition. What do you think your advantages are?

Mr. Zhang: Except strategy advantage, we have all the other ones. Chinese stairs culture absorbed advantages of Germany and Italy. We all know that German stairs are made of steel while Italy is famous for its design. Italy and Spain are preponderant for their luxury culture. Why Chinese stairs haven’t brands? I think it is because China’s five-thousand-year culture hasn’t showed on stairs but tables and chairs.

Host: The advantages of Elgin stairs are showed on its service, quality and value. What is the percentage?

Mr. Zhang: Material is ranking the first. Stairs are half hand made. Chinese stairs industry hasn't standardized. We need to pay attention to materials if we want to make good products and shape our brand. As stairs are made of steel and wood, they will be ugly if distorted. It destroys not only the upper space but the lower space. So materials are important. Woods should be processed abroad, like dehydration, desugarization and deenzymetion. Manufacturing techniques are also important. China can make most of the things. However, if you look carefully, you would find craft is not so satisfied.

When customers buy stairs, they don’t know the products. That’s why a lot of problems appear at the installation site. The price of our products is the highest. As a result, we have no price advantage. But we invested a lot to guarantee good quality.

The concept Chinese have on stairs is very superficial. I think customers’ consuming idea will be fostered in one or two years.

Host: What do you think of stairs?

Mr. Zhang: It is difficult for customers to buy the stairs they like. It is because stairs are not popular products. For example, in every 100 people, only 1%-3% of them need stairs. They are at high level. They need individuation. But how do we realize individuation? Now stairs are gradually combined with furniture. For example, Markor Furnishings has a style combined with North America and Da Vinci. So we have North America style and Markor style. Our stairs are in harmony with furniture.

Host: We are looking forward to it. At present, the market share of foreign brands is 5% in China. Why is it so low? Is the reason of price?

Mr. Zhang: There are two reasons: one is price; the other is culture which is more important. In Europe, stairs are not dyed and has a large chromatism. Chinese customers can not accept it. Foreign customers like nature. They can accept stairs with scars while Chinese can’t. Secondly, stairs are personal product. Foreign manufacturers can not understand situation in China. Our products are not in the same type. It is different from selling tables. Stairs are sold by household, logistics, fittings and installation is different. Thirdly, prices are different. We earn 2000 RMB while foreigners earn 2000 Euros. However, it is ten times in exchange rate. Our quality and craft is fine. 80% of Chinese stairs are copies. Few of them are independently invented. We are now going to set up a joint venture with Germany to research and develop new products, thus realize design in China.

Host: What kind of stairs do people in Guangzhou like?

Mr. Zhang: There are more than sixty dealers working in large and medium sized cities across the country. When we came to Guangzhou, people here didn’t accept stairs. But they paid attention to brands in three or four years. Recently, we found that people from Guangzhou would become more generous when new products are released. They will accept as long as place of origin is clearly notified.

Host: In your opinion, which kind of material you like best?

Mr. Zhang: I like wooden. It is simple, natural and reminiscent.

Host: What do you get most at this exhibition?

Mr. Zhang: As we developed new products, I hope to see who will pay attention to them. At the same time, I will visit other companies in the same industry and meet with buyers and suppliers. What’s more, a lot of foreign businessmen have come to this exhibition. They showed interests in our products. We developed classicism and neoclassicism styles which can not be understood by Chinese. But foreigners can. We would fail if they could not accept or pay attention. The rapid information made us experience a lot. Today is first day for exhibition. A lot of people showed up at our display area. Some small stairs companies in China may mislead customers. For example, rubber wood is useless. But they would tell customers it is oak. Our material is real oak, thus it is expensive.

Host: What about marketing? You use direct marketing or retailing?

Mr. Zhang: We use channel marketing which is also called surrogate. We have 62 agents which are in the form of filial in South China and North China. We are cooperating with these filiales. For example, we set up a filiale in Guangdong Province. We also have agents in Guangzhou, Shenzhen, Zhuhai, Huizhou, Fushan, etc. Problems may occur when stairs are fixed. At that time, the filiale will provide rapid service. It is the best way.

Host: Thank you very much for accepting our interview.

Mr. Zhang: Thank Soufun for providing this interview. I think you are very wise to choose this opportunity to make living broadcast on line.

Host: Thank you, Mr. Zhang! And thank all the net friends. Time is up. Bye.