Business / Companies

Jereh poised for a gusher of growth in US

By Du Juan (China Daily) Updated: 2014-04-08 07:24

"As a brand that is not well-known in the US market, each of our clients is a precious resource for promotion," said Yang. "When they see that our products are of high quality, they will introduce us to other companies. That's how we can grow."

Jerry Griffith, senior officer with American Jereh, who has been working in the US oil industry for more than 30 years, said the company still faces challenges in expanding in the US.

"I love Jereh, but it has difficulties in marketing," he said. "There are teams of Chinese employees who are responsible for client maintenance here. They speak English well, but they don't know what all the words mean," he said.

"The network is crucial for any business. That is no exception anywhere in the world," he added.

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Yang admitted that it's hard to compete with big names, "but we still need to seek new clients and keep them satisfied with our products and services", she said.

She said the company, which expects to double its number of clients this year, has been learning from its US counterparts. It established several engineering teams to solve problems for users around the clock.

The company also developed a strategy to grow profits from after-sale services and components sales than just selling equipment.

"It's common with US equipment manufacturers that profits from the after-sale sector are higher than new product sales," Yang said. "We are also heading in that direction."

The Chinese player now offers a full package of after-sale services, providing many options with which clients can solve problems and save costs.

The US market is now Jereh's most important overseas, according to the company.

Cheng Yongfeng, the group's board secretary, said the company's exports accounted for about 40 percent of total revenue in 2013, and its long-term goal is to expand that figure to 60 percent in the next five to six years.

"The US and its shale gas industry will play a big role in Jereh's overseas development," he said.

The company plans to make Houston its North American center for product fabrication and exhibition, as well as for after-sales service and research.

"As the shale gas industry becomes more mature and stable in the US, the potential demand for equipment is huge," said Yang.

As one of the founders of American Jereh, Yang said: "I would love to contribute to the company, passing along what I know to the young team here, establishing a reputation and brand of the company here."

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