Zhuzhu (A), a Chinese entrepreneur, built a successful handbag business in Dubai, overcoming financial and market challenges through strategic partnerships with Chinese manufacturers. Her success enabled her to immigrate to the United States through the EB-5 investment program, where she pursued her long-held dream of a doctoral journey. Her transition from building a business in one of the world’s largest trade hubs to pursuing academics demonstrates resilience, adaptability, and a commitment to lifelong learning.
In this interview, Yinxia Yang (Q), an independent art critic and educator in the New York metropolitan area, who is currently a doctoral student in the Educational Leadership and Ed.D. Program at Monmouth University, speaks with Zhuzhu about her entrepreneurial journey, the challenges she faced, and the lessons she learned. Her story may offer valuable insights for aspiring Monmouth students as they navigate their paths to success.
Preparation Stage: Accumulating Experience and Funds
Q: Thank you for meeting with me. How and why did you start your lady bag business?
A: I cherished an entrepreneurial dream when I first set up in Dubai in 2003, but honestly, I had no idea where to start. I faced many serious challenges in a new land. To survive, I simply rented a bed space for myself because it was the cheapest way to settle down. To understand the Dubai market and find opportunities for my goal, I went to look for a sales job the next day to prepare for my business journey.
Fortunately, I soon landed a job as a salesperson in a Chinese operating lady bag company carrying on wholesale businesses with strong ties to suppliers in China. While working there, I seized the opportunity to communicate with clients, attentively listening to them talk about their markets and business stories. There is no doubt that more information suggests better decision-making. Through frequent conversations with customers, I began to ponder what type of business path would be a good fit for me and how I could watch out for any red flags to avoid if I started my own business. Day by day, I developed a better understanding of the lady bag market, such as where customers came from, what market demand for the products was, and how I should set up the right price for the market.
I think it is important to keep a clear mind about your goals all the time. About a year later, I began thinking about how to establish my own business in the handbag market. Since I did not have the financial ability to import goods directly from China, I came up with the idea of doing consignment sales as the first step of my business journey. The consignment sale is a trade agreement in which I, as the owner of the lady bags, the consignor, provided goods to a local retail store, the consignee, to sell, but the store had the right to return unsold bags to me. After communicating with local retail stores, I found out that the consignment business would work in the Dubai market because both the retail stores and I could minimize the risks of business costs. This win-win business cooperation expanded my business fast. I accumulated funds for my short-term goal one year after the consignment business.
The First Stage: Prioritizing Cost with Limited Funds
Q: How did you start working with manufacturers, and how did you choose them?
A: After making the initial profits from the consignment business, I opened a wholesale showroom in 2005. As luck would have it, a Chinese businessman was setting up a Chinese Commodity Wholesale Centre in Dubai with affordable business space for rent. As soon as I signed the contract with the Centre, I went to China, looking for manufacturing partners for my lady bag business because Chinese sourcing could offer me lower manufacturing costs and a high number of manufacturers to choose from.
Since I had been involved in the lady bag business in Dubai for a couple of years, these personal experiences gave me the advantage of where I could possibly find sourcing products in Chinese markets. I decided to choose China’s Baigou Bags and Cases Trading Market in Hubei Province, known as “the capital of luggage,” the world’s largest wholesale market strongly supported by numerous local manufacturers. In the minds of the bag traders, the Baigou Market is well-known for a wide variety of products with relatively low prices. As a small business owner, I thought this could be the right market for me to collaborate with.
Regarding choosing manufacturers, with a limited amount of funds the costs of the product were the top priority at the time when I started to step into the business field, even though the price was not everything. As mentioned previously, the Baigou Market offered me comparatively low prices, and it took me a whole week to familiarize myself with the wholesale market. When I obtained similar quotations from different manufacturers there, I compared the quality of the samples provided in their showrooms. After initially selecting some possible factories with which I might cooperate, I visited their production lines to check product quality. Manufacturers with relatively low quotations tend to be small-scale factories. Most manufacturers in Baigou County are family workshops with about a dozen workers. While China’s accession to the World Trade Organization (WTO) in December 2001 was a landmark event, its market and structural adjustments would take time to perfect since China was emerging from an isolated country. All this suggests that in the Baigou Market, product quality and delivery dates may be hard to control, mainly because of family-style production. I was aware that a manufacturer was a key partner in my business. However, as the old proverb goes, “Man proposes, God disposes.” Considering everything, I decided that the Baigou Market’s small-scale manufacturing partners would work for my new wholesale business career despite uncertainty.
However, reliable manufacturers were not always easy to find. It took me at least one to two years to source suppliers from the Baigou Market. I first tried collaborating with five to six manufacturers, but some were just used as a backup. As time went by, I selected a few relatively reputable factories to work with. I understand that without manufacturing partners, I would have nothing to sell. Therefore, maintaining a great supplier relationship is necessary if you want to stay competitive. However, the business partnerships did not work as productively as expected for many reasons.
Q: What did you experience in the past two years, and why did you change partners?
A: As mentioned above, at the beginning of my business, prices were my primary concern, but I knew that low prices would give rise to implied uncertainty of product quality. I admit that the price advantage in Baigou brought me high profits. Still, low manufacturing and labour standards and unstable product quality made it hard for me to establish a stable sales network in Dubai, which negatively impacted my business development. If my customers were not satisfied with the product’s quality and were unsure when my goods would arrive in Dubai, I turned them away and would lose the market.
While I was frustrated about the less effective cooperation with manufacturers in Baigou in terms of non-conforming products and delayed delivery time, I am still grateful to those business partners who met my needs of low prices and low costs. After all, I financially benefited from this business, especially at my beginning stage. To make my business grow steadily, the collaboration setback in Baigou in two and a half years made me think about shifting my focus from low prices to product quality while still paying attention to the cost of goods, adjusting my priorities and strategies to adapt to the needs of my second stage of business, with my attention turning to another bag production base in Haining City, Zhejiang, an eastern coastal province of China.
The Second Stage: Prioritizing Quality While Considering Cost
Q: So, what happened to the second stage of running your business?
A: Finding suitable manufacturers can be daunting, particularly if your business is at an early stage. As Haining City (海宁市) is a very mature leather process base with high product quality in China, including handbag products, I just wanted to try it to see if there would be a place for my business. I spoke to several factory owners about product requirements, the quantity of each order, delivery time, etc., and finally reached a preliminary intent on cooperation. Although the cost was about 30% higher than that of the Baigou Market, the business idea of prioritizing quality products was worth pursuing, considering my customer empathy. For this reason, we started our partnership.
When the first goods I ordered from the Haining factory arrived on the scheduled delivery date in Dubai, I was genuinely amazed to find that the products met all of my specific requirements, including quality, material, accessories, size, packaging, and delivery date. In fairness, the quality of the products exceeded my expectations, which enabled me to charge and maintain higher prices for my items. Their professional production skills, quality, and process stability boosted my confidence in continuing to collaborate with Chinese manufacturers in the future.
The urgent issues of product quality were resolved. I gradually realized that most handbag factories in Haining functioned as a bag production base, simply focusing on processing orders for big brands. Unlike the Baigou Market, instead of providing clients with product samples and new designs in marketing, they accepted jobs with samples and materials supplied by clients. Unless my own company designed all of the new types of competitive handbags to meet the increasing consumer market demand for my business, I would continue to struggle in an unfavorable situation. Considering the survival and growth of my handbag company, I had to find my way out to adapt to my needs.
The Third Stage: Innovation, Transformation, and Development
Q: So how did you fight off the challenge?
A: Things did not turn out better until 2009, when I eventually established long-term collaborations in Guangzhou City (广州市) in southern China, where I began to think about the road leading to the sustainability and development of my company. While collaborating with the Haining factories, I noticed that they frequently mentioned a city—Guangzhou City. The repeated mention of the city made me want to visit Guangzhou to explore new markets.
I visited the Guangzhou Baiyun World Leather Trading Centre, which is at the forefront of high fashion worldwide and famous for its middle- and high-product-quality. It is a contemporary, international, large-scale handbag wholesale market with a business area of about 16,000 square meters. To my surprise, the bag designs there were so fashionable, and the materials were so novel that they caught my attention immediately. The market is considered a paradise for bags for numerous customers from all parts of the world. I spent two weeks moving around this market and talking with different suppliers, and I began to consider cooperating with Guangzhou manufacturers. Although my company had been growing little by little over the past four years, my products lacked their own characteristics. After working with Guangzhou manufacturers for a year, I completed the production transformation by creating innovative products in my own company to promote business growth.
Q: What is production transformation, and how did it benefit your company?
A: Production transformation refers to the process of converting materials into finished products with innovative ideas and unique styles. In my first five years, my products mainly focused on general handbags for daily use, and they carried no distinguishing features such as designs, materials, styles, and accessories in the Dubai market.
Although I had to be rational and practical after several years of business experiences in the real-world market, I am the kind of person with a mindset that actively seeks out change and learning rather than waiting to adapt to change. That mindset embraces critical thinking and continuous growth. For example, one day, when I accidentally found a new series of party bags in my business partner’s showrooms, I felt they were amazingly charming. Many trades may think that expansive party bags are usually used at a party, not for daily use. So, they are unwilling to choose it as their wholesale products. Party bags are also rarely seen in the Dubai market. Despite the concerns, I still thought that this could be a great idea for a new business since everybody loves pretty things.
From then on, I spent a lot of time in my showroom listening to customers’ suggestions and comments on party bags concerning size, color, fabrics, etc. Through interpersonal communication, I decided to combine the elements from an exquisite sense of the party bag and some practical functions of handbags. So that it would serve customers well everywhere, from the office cocktail party to everyday life.
By working closely with the Guangzhou factories, I turned my product idea into tangible goods. As expected, the sales of attractive and multifunctional party bags rapidly grew in Dubai. Since my company launched stable-quality, innovative bags, they quickly won a place in the Dubai bag business market. Simultaneously, I began cooperating with some well-known international chain companies, including City Centre Deira, Dubai Mall, Day to Day UAE, and Carrefour S. A., and my business was surprisingly moving forward.
Conclusion
Q: What is your business philosophy if you have one?
A: As a well-known Chinese proverb states, “a thousand-mile journey starts with a single step.” Since success is not an event but a process, in my own case, how to be the best version of myself matters! If I am not happy with who I am today, the best way forward is to start learning and working toward a better version of myself now.
Q: Thank you for sharing. Finally, what is your attitude toward your life?
A: Whether in business or academics, I think my goal is not to create a successful sample but to keep learning and strive to be the best version of myself!