Li Chaodong has always believed nothing in the world is difficult for those who set their minds to it.

As a matter of fact, Li's own business success proves that point.

Two years ago, Li was a clerk in a local State-owned company. Now, he is president of Guangdong-based I'Code Co Ltd, China's largest manufacturer of gifts for lovers. The firm operates more than 105 chain stores nationwide.

Starting business in early 2004 and with a registered capital is less than 100,000 yuan (US$12,048.19), I'Code posted revenues in excess of 4 million yuan (US$481,927.71) by the end of last year. The figure is expected to exceed 20 million yuan (US$2.41 million) by year's end, says Li.

"When talking about my success, some of my friends call me a 'lucky dog,' but I don't really think so. The key is I have been too observant and conscientious, and I seized the business opportunity at an appropriate time," Li says.

Early in 1996, with a great longing for a bright future, Li resigned his job in Loudi in Central China's Hunan province and went to Guangdong with his wife. He successfully applied for a job in a state-owned company. Li worked very hard and was soon promoted to the department general manager responsible for marketing.

However, good times don't always last long. At the end of 2000, Li's department was reshuffled, and he was transferred to another department.

"I felt depressed, because I had to start from the very beginning. It was at that time that I made up mind to set up my own business. I began to pay attention to kinds of information, waiting for opportunities," Li says.

The idea to open a store that specialized in gifts for lovers came to Li in September 2002 while he was thinking about buying a birthday gift for his wife.

He found it was very difficult to buy a romantic present for his wife's birthday because such kinds of products are limited in the domestic market.

"I planned to buy a special gift for her, but I racked my brain and searched all the shops in Guangzhou. With the exception of chocolates, roses and clothes, I could not find anything attractive," Li says.

Then, Li asked himself: "How about setting up a store that sells lover gifts? As many people must face the same problem I do, products especially designed for lovers must be in great need?"

With the help of his friends, Li researched the domestic and global markets. To his surprise, Li discovered there were few lover-gift manufacturers in China or the world, for that matter.

"That is amazing, right? That gave me much more confidence," Li recalls.

Li spent more than half a year interviewing couples on the streets, and in coffee shops, cinemas and universities around Guangzhou. He was seeking opinions about opening a lover-gift store.

After having conducted extensive research, Li quit his job. He was brimming with hope.

In April 2004, I'Code, in the centre of Guangzhou, opened to the public. During its first month, most of the customers were Li's friends and relatives. The store's revenues reached 8,000 yuan (US$963.86). He, at least, broke even.

Rapidly, I'Code's novel, but small trinkets caught more and more people's attention.

I'Code's business grew briskly. I'Code posted revenues of 20,000 yuan (US$2,409.64) and 40,000 yuan (US$4819.28), respectively, in May and June. Each month, I'Code's revenues increases at a staggeringly high speed.

Seeing his hard work begin to pay off, Li was filled with elation and amazement. However, He always remained sober-minded. With years of experience in marketing, Li firmly believed in the significant value of branding.

"From the first day of business, I was set on long-term development, and gave top priority to branding. Branding, I think, is the most efficient way to play the leading role in the market," says Li.

"As the market is so huge and attractive, many people cast their eyes on it and follow your path. If you cannot build up your brand and continuously strengthen it, you will gradually lose your competitive advantage, and will eventually be buried in the market."

Last October, shortly after the store was established, I'Code set up its own research and development (R&D) department.

"We employed 20 professionals, mainly responsible for developing exquisite and unique products," Li said.

Compared with watches sold in other stores, the uniqueness of I'Code's watches lies in function, not outward appearance.

"We manage to introduce high technology into the products, which makes it impossible for the other players to copy, and, more importantly, this enhances I'Code's brand image," Li explains.

I'Code is also greatly enlightened by customers when tapping personalized products, Li adds.

Sometimes, customers ask the R&D staff to design specific products, in accordance with their requirements. "Some of their ideas are thought-provoking, and I'Code will make use of them and apply them well into products," he says.

In addition to lover gifts, I'Code is also planning to provide drinks to the lovers in the store.

"We would like to try every means we can to deepen customers' understanding about I'Code, making them naturally associate I'Code with lover gifts, both visible and invisible," Li says.

Most of the other players are busy making quick profits, instead of settling in and digging out the core value of their brands, as I'Code is doing, Li says.

As I'Code's business flourishes like the sun at high noon, the biggest challenge Li faces is maintaining the steady expansion of his business.

Last August, I'Code began developing its first chain store. In two years, I'Code has opened more than 105 chain stores around China. The company is expected to have 300 over the past few years.

"As more and more people join in opening I'Code franchises, chain store management remains the biggest problem. We must keep a prudent attitude in business expansion," Li says.

He sets a high threshold for those who expect to open I'Code chain stores. "Money and experience in business operations are basic requirements. But brand recognition and location are more important factors," he says.

Once, Li refused a girl who expected to open a store in her hometown. "Although she had enough money and management experience, the city she lived in was a very small city in Southwest China's Guizhou Province, where the consumption level was very low. How could we count on those who cannot satisfy their basic needs in daily life to buy lover gifts?" Li asked.

I'Code has also developed a mature chain store management system. Its headquarters frequently trains the chain store operators in marketing and management. Chain stores also regularly report their business performance to headquarters.

"In this way, we can have a better understanding about the chain stores' needs and situations, directing them to make progress in an appropriate way," Li says.

I'Code is preparing to expand overseas including the markets in Europe, the United States, Southeast Asia and Japan.

"I don't think it (expanding overseas) is too hasty. Early birds catch more worms. As long as we have laid a solid foundation in the local market, it is possible for I'Code to go overseas," Li says.

(China Daily 07/04/2005 page3)