Chinese couple profits in sister city

When Germany's once-booming Ruhr industrial region shifted part of its steel-making operations to his hometown in the 1980s, Fu Xin and his new wife, from Wuhan, capital of Central China's Hubei province, moved in the other direction.

After saying goodbye to their parents, they spent days traveling by train in August 1989 before finally settling down in Dusseldorf, the capital of the German state of North Rhine-Westphalia.

Then, like many overseas Chinese of his generation, he started to make money soon after his arrival, washing dishes at a number of restaurants to complete his education.

Gradually, as a computer science major, he managed to earn the family's living by offering part-time maintenance services to some computer users at the beginning of the 1990s.

"The hardship and experiences ignited my passion to start my own businesses using my expertise one day," recalled Fu, 49.

When thinking of a location for his business, the couple targeted Duisburg, a once world-famous steel city, twinned with Wuhan, where Fu worked before moving to Germany.

Fu recalled that workers from steel and iron factories in his hometown completely dismantled the production lines in Duisburg, putting them in containers and then shipping them to Wuhan. "And then, as a Wuhan native, I joined the German locals in the shift to services and high-tech after they abandoned heavy industry," said Fu.

In 1995, the couple, together with his sister-in-law, set up Fusitec Electronics in Duisburg, and the sister city relationship with Wuhan helped boost his newborn company's business. Employing four part-time sales staff, they opened a shop in the city selling computers and computer accessories.

The opening day was a big success. "We had more than 600 customers, far beyond our expectations," said Fu.

During the following years, business was brisk. And behind it was the family trio: Fu calls his wife an excellent executive who can understand his mind and improve his ideas, and he regards his sister-in-law as a born businesswoman who always smiles and easily makes friends.

At that time, computers entered many homes and workplaces, but there were not many service providers. By 2002, Fu's business had expanded to six shops in Duisburg. "During that time, you found market potential was always there if you worked hard," said Fu.

For example, some accessories were free of charge when customers bought computers. "But if they were well packaged, these cheap accessories, mainly from China, could be sold at a price with a huge profit margin," said Fu.

But the trio didn't rest on their laurels. In 2002, they made two big decisions. One was to build storage and office space in the city's high-tech zone with a total investment of 1.8 million euros ($2.25 million). The other was to set up a new brand, SANSUN.

"The past 10 years consist of a two-part story," said Fu in the office building.

For the first five years, the business expanded. It became one of the biggest computer importers in Germany with more than 40 employees. At its peak, SANSUN's annual turnover surpassed 3 million euro.

By using his brand, Fu even invested in electronics assembly plants in China.

However, the business started to shrink when the financial crisis hit in 2008. As the European sovereign debt crisis deepened, Fu said its impact exceeded his expectations.

To readjust to the crisis, Fu said he has been calculating every day.

"To survive, we had to abandon the business-as-usual approach. The most important strategic change was to turn estimation into precision to minimize expenditure but maximize our profits," said Fu.

"I now spend more of my time on planning and precise budgeting."

Apart from that, Fu also laid off employees and now has around 20 workers on his payroll. He also asked producers to reduce packaging to cut costs. His survival skills also include the reduction of storage and closely monitoring the fluctuation of foreign exchange rates.

"Every day, you have to think about survival in a time of crisis," said Fu.

Fortunately, his survival strategy means that his company is still making money. And that has won him recognition in the local community.

Last year, during Spring Festival, his neighbors greeted him with champagne, and wished him a "Happy Chinese New Year".

fujing@chinadaily.com.cn

(China Daily 08/28/2012 page13)