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March 7, 2017

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Home » City specials » Hangzhou

Young innovator whose cup runneth over

YANG Mingjie, 28, is the kind of young entrepre­neur that Hangzhou is trying to help turn in­novative ideas into marketplace successes.

Yang has been in the cup business since 2013, after his college graduation. He founded a company called Mufor, which makes signature cups and mugs and has helped set trends in that industry.

He is the first to admit that start-up companies have to survive growing pains and setbacks.

After graduation, Yang and several friends opened an online shop on Alibaba’s e-commerce platform Taobao to sell enameled cups. Their distinctive style and low price made them an instant hit with college students.

“At the peak, we were the best seller of that type of product on Taobao and sold thousands of cups every day,” Yang told Shanghai Daily. “I had to hire 15 part-time college students helping me package the cups for delivery.”

Yang, who based his company in the Xiasha university zone in eastern Hangzhou, quickly found rivals nipping at his heels.

“I wholesaled cups from a fac­tory, and then other sellers also began buying cups from the same supplier,” he said. “The competi­tion became so fierce that we had to lower the price of the cups to break even just to maintain our position in the market.”

In the end, competition forced him to close the shop on Taobao, but Yang’s entrepreneurial spirit was not crushed.

“I majored in design at uni­versity, so I thought, ‘Why not design my own style cups?’” Yang said.

His original designs were winners with consumers, and friends with expertise in market­ing helped him sell them.

His first design series was themes on characters and scenes from the Chinese epic novel “Journey to the West.” Sales vol­ume skyrocketed to more than 60,000 cups.

In addition to popular de­signs, the cups also were of high quality. After surveying manu­facturers across China, Yang finally settled on an enamel fac­tory in Shanghai.

“The enamel on the cups is so smoothly and thinly glazed that it could be compared with porce­lain,” Yang said. “Our cups are also a bit weightier than cheap enamel cups. They cost more, but they appeal to people who recognize a quality product and appreciate uniqueness.”

Minimalism to smart

After the cups, Yang’s compa­ny introduced a minimalist-style glass bottle. It, too, was popu­lar, selling in the hundreds of thousands.

Naturally, cheaper copycat models began appearing on the market, but Yang said he pre­ferred to focus on brand-building instead of fighting intellectual-property rights battles.

He said he hasn’t applied for any patents because the glass bottle industry changes so quick­ly and is even now beginning to fade in market prominence.

Instead, Yang’s company has switched its focus to a new “smart” vacuum mug that regis­ters water temperature and has special functions for simmering an egg and making fruit teas.

“Some of the ‘smart’ vacuum mugs on the market have too many functions,” he said. “Like showing the mineral content in water, displaying flow rate and even attaching to smartphone applications. Such functions are dispensable and, to some extent, complicate drinking water. They also add to the cost of the product.”

Yang’s vacuum mugs stick to basics, with a few practicalities added.

“People on their way to work can put an egg and some boiled water in the mug, and when arrive at the office, the egg is cooked and ready to eat,” he said. “Our vacuum mug is also good at keeping water cold. In summer­time, a user can chop some fruit pulp and put it with water in the mug for a refreshing fruit drink that keeps in the heat.”

When Yang’s smart vacuum mug was launched on the Mi Crowd-Funding platform sev­eral months ago, it attracted a surprising 2 million yuan (US$289,795) in a month.

“Our products mainly target the market in the price range of 100-200 yuan,” Yang said. “That’s below global rivals like Thermos and Zojirushi but above cheap domestic products. We want to fill that market gap.”

This year, sales volume is ex­pected to reach 35 million yuan, and four new products to be in­troduced in the second half.

Yang’s company also offers customized products to clients. Last year, Zhihu, China’s largest question-and-answer website, ordered nearly 7,000 cups from Mufor. Chains like Costa and Pacific Coffee also have or­dered specialty mugs from the company.

Yang said the Internet has helped the company expand its profile and attract new customers.

The company has now moved its base to Qiantang Smart Town, which was established last year as a hub for “intelligent” manu­facturing in the city.

“Local government authorities offer good services and support, like help with talent recruit­ment,” said Yang.




 

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