CLS Report | Enotek Andy Jiang: Opening a New Chapter with Global Layout and Capital Empowerment Scan the QR code to read the original article

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In the wave of globalization, how enterprises can grasp the opportunity to lay out overseas markets and at the same time move forward steadily in the capital market is a problem that every enterprise aspiring to become an important player in the global market must face.

Enotek, as a pioneer of industrial intelligent logistics solutions in China, has provided us with a vivid case study in its development history and strategic layout.

Recently, Andy Jiang, founder, chairman and CEO of Enotek Group, shared his in-depth thoughts on the company's overseas business layout and capital market strategy, revealing how this globalized logistics technology company relies on technological innovation and localization strategy to continuously break through the industry boundaries, as well as how it will leverage business innovation and the power of capital in the next five years and even longer to promote global expansion and sustained growth.

Building the international map of intelligent logistics

Founded in 2008, Enotek Group, with its global headquarters in Shanghai, formerly known as Eoslift, started as a manufacturer of light and small forklifts.

In 2013, Enotek formally transitioned to a solution provider, and became a company that can provide customers with a full-chain industrial intelligent logistics solutions covering “equipment + software + systems + platform services”. Specifically, it includes the R&D and production of hardware products such as AGVs, RGVs and stacker cranes, as well as the research and development of system software like WMS, AGV dispatching system and digital twin. The core business includes intelligent storage system, intelligent handling system, intelligent picking system and intelligent sorting system.

Enotek started from international trade, and then built its own factories to develop forklift and other logistics equipment. Now it has become a full-chain industrial intelligent logistics solutions provider after 15 years of development. According to Andy Jiang, Enotek has experienced three 5 years, every 5 years is an upgrade.

Now, standing on the starting point of the fourth 5 years of the company's development, Enotek is ready to enter a new historical stage: under the stabilization of the domestic market, Enotek will take a big step to fight for the overseas market, “The company's internationalization process not only strengthens the global business network, but brings us valuable experience in operating in different cultural and economic environments.”

According to Andy Jiang, so far, Enotek has gradually established a wholly-owned subsidiary in the United States, a wholly-owned subsidiary and a global sales center in Singapore, forming a global sales and service network throughout the Americas, Asia, the Middle East and Europe.

Especially in the U.S. market, Enotek has established a complete sales network and system covering the whole U.S., and jumped into a leading enterprise providing full-chain industrial intelligent logistics solutions for the consumer goods, e-commerce, logistics and manufacturing and other fields.

From the electric forklift and warehouse forklift manufacturer based on the domestic market, to an intelligent logistics solutions provider for international market, Enotek's globalization layout is not only a confident reflection of the team's ability, but stems from a deep grasp of market demand and customer pain points, as well as a keen insight into the changes in the global industrial chain.

Aiming to achieve an 80% share of overseas business

When it comes to the advantages of Enotek's overseas expansion, Andy Jiang said that the company has a deep background in international trade, and has an in-depth understanding and layout of overseas markets. For example, a senior management team resides permanently in the U.S. subsidiary. At the same time, private companies are more flexible in overseas expansion.

Andy Jiang emphasized that in different overseas markets, enterprises not only need to rely on deep R&D strength and excellent product performance to achieve competitive advantage, but needs to actively build ecosystems with local partners. Challenges such as cultural differences, regulatory restrictions and technical barriers can be overcome through localization strategies, including the establishment of overseas marketing centers, the strengthening of sales channels and networks, and the implementation of projects and customer services in each country.

Taking the U.S. market as an example, more than 95% of the employees of Enotek U.S. subsidiary are the natives, building a completely localized core team with rich industry experience in marketing and service. In terms of business scope, Enotek U.S. subsidiary insists on the strategy of Walking on Two Legs, including the sales of warehouse handling and intelligent warehousing equipment, as well as project planning.

According to Andy Jiang, their U.S. market has stabilized and then they will focus on Southeast Asia, the Middle East, South America and other regions. Besides, the company is planning to move the global headquarters to Singapore, in order to better radiate the surrounding markets.

Talking about the layout in Southeast Asia, Andy Jiang believe it is an indispensable market. The local manufacturing has large market space, while the local infrastructure is still in the construction of the wave. The market demand for intelligent logistics is still strong. Besides, Southeast Asia has the advantage of low labor costs. The Middle East has been developing rapidly in the past two years, and Enotek is optimistic about the Middle East's infrastructure construction and logistics center construction. In addition, South America is an emerging market.

However, it is not easy for an overseas company to enter the local market. Therefore, Enotek is to plan to accelerate the layout in overseas markets through acquisitions and mergers.

The current overseas business of Enotek is maintaining a high growth rate, but Andy Jiang is not satisfied with the status quo. According to his plan, he hopes that in the future Enotek's overseas business can account for 80%.

Planning to list abroad with the power of capital

With the wave of digitization and intelligence sweeping the world today, industrial intelligent logistics solutions are attracting more and more capital attention as a key element to enhance the competitiveness of the manufacturing industry.

Enotek's layout in the capital market is also an important part of its development strategy. In recent years, Enotek has made frequent actions in the capital market, such as listing on the New Third Board and completing two rounds of financing with nearly one hundred million CNY. With the expansion of business scale and the enhancement of technical strength, Enotek is actively promoting the layout of the capital market.

Jiang Yuejun said that the company was promoting a new round of financing, with nearly 100 million U.S. dollars. The main purpose is to expand overseas markets, improve the sales network and strengthen R&D investment, in order to support the company's globalization strategy layout.

For the introduction of funds, Andy Jiang plans to introduce industrial capital through financing, to achieve synergy overseas with strategic investors. They already have a plan for overseas listing and they believe that it will come true in the near future.

In Andy Jiang's view, after experiencing the transformation from traditional forklift manufacturing to the full-chain intelligent logistics solutions, only with the power of the top international capital market can they better promote the company's globalization strategy, and achieve technological breakthroughs, business model innovation, and a comprehensive increase in market share.

For the future plans, Andy Jiang clearly indicated that the company will make full use of the funds raised by the capital market, continue to increase investment in research and development, especially for the transformation and application of intellectual property patents, and continuously improve the product power and technological innovation ability, at the same time quickly open more overseas markets through the acquisitions and mergers of overseas high-quality assets and channels.