MadeInChina.com¡¯s Real-name System Shakes China E-commerce Industry

2008-08-12

---An interview with Michael Zheng, CEO of MadeInChina.com

Reporter: Pei Yu

Beijing, China, June 4, 2008 – China’s internet industry never lacks for hype and overstatement but rarely sees mission sense and execution. There are countless well-known figures in B2B area, but insightful leaders are rare.
 
In the summer of 2008, MadeInChina.com entered the e-commerce scene by introducing and implementing “Quality China Suppliers”, hoping to enlist all current members. It quickly took the China B2B industry by storm. Michael Zheng, a renowned leader in this industry as well as the developer of the “Real-name Registration System” leads MIC in this drive. His bold move has shocked the whole industry and aroused numerous questions. Our interview with Michael Zheng, CEO of MadeInChina.com should help readers unravel the mystery of “MadeInChina.com Real-name System”. 

Michael: “We are serious about this!”

Reporter: Other companies have already started developing “real-name” products. What makes yours different from other similar products and what are the advantages of MadeInChina.com entering the field?

Michael: Up until now, there has been no internet company utilizing a real-name system. MadeInChina.com will be the first B2B internet portal to do so, with “Quality China Suppliers”. MadeInChina.com will not only provide a real-name system for all registered members but will continue to enhance its effectiveness. To this extent, MadeInChina.com is the first one in China.

We Chinese preach the unity of theory and practice. For B2B real-name system, we are not talking about theory but creating solid benefits for our customers and for society as a whole. Before the 1990s the internet industry mainly demanded quantity of information whereas now there is so much information that the key factor has become quality. Users need true, objective and trustworthy information, so we need to filter out that which is false, useless or even cluttered, especially for foreign buyers. Their driving concern is the credibility of suppliers. This is not just demanded by a small number of people or enterprises, but is the standard of international trade globalization. Chinese SMEs can open up the international market only by adhering to these standards. MadeInChina.com is the most trustworthy B2B website in international trade because all of our suppliers have been certified “Quality China Suppliers”. For global buyers, we will provide the truest, most detailed and objective supplier information to save buyers screening time, while enabling listed “Quality China Suppliers” to realize their dreams and complete their missions, something that other B2B platforms are not able to offer.

MadeInChina.com: As the mainstay there is no other choice

Reporter: How did you come up with the idea of “Real-Name System”?

Michael: The idea was born many years ago and I have been contemplating the concept of “Quality China Suppliers” ever since. Let’s take a look back at the development of e-commerce during the past few years. In the past, buyers agonized over the lack of information, but things have changed a great deal. For global buyers, price is not the only critical factor. One of their primary concerns is the qualification of suppliers and the quality of products; namely, whether the suppliers are reliable enough to consistently provide quality product. There are basically four aspects with which they are most concerned: 1. Is this supplier is a real entity? 2. Does this supplier comply with international trading rules and meet environmental protection standards? 3. Does this company comply with international business ethics in areas such as human rights and child labor? 4. Is this supplier experienced in foreign trade? These four questions are what global buyers care most about and, therefore, are also the areas that should demand a suppliers’ utmost attention. Real-name system is the first stepping stone towards effective communication between buyers and suppliers, enabling all parties to address these issues.

This year, the Ministry of Commerce elicited public opinion on E-business Model and Online-shopping Transactions Service Specifications draft versions. It is a clear sign that government will push real-name systems at the policy level. Since we own the exclusive domain name madeinchina.com, it is our obligation to push “Made in China”. The time is right for this system and we feel it is our obligation to make it available to the entire world. I believe that the role of MadeInChina.com in promoting the real-name system process is easily summarized: "As the mainstay, there is no other choice."

Confidence comes from the trust of suppliers and buyers

Reporter: MadeInChina.com's “Real-name System” must address broad concerns. As the first one to hit the market, why you are so confident about the success, where does your courage come from?

Michael:£¨smile£©I have thought about real-name systems for years and now MadeInChina.com comes just as conditions are ripe. Let me give an example. Someone asked a friend about MP3s and when the friend recommended Aigo, that's what he bought. Why did he buy an Aigo MP3 without really knowing about it? It’s not due to the popularity of the brand, but due to his trust in his friend. Our belief in the real-name system is based on the broad support we have received. If the information of a website is trustworthy, the website itself is trustworthy. We have already gained the trust and support of global buyers and, as a result, domestic suppliers will trust us too. Our high confidence is based on this trust from e-commerce users.

A service platform with unreliable information is unpromising. MadeInChina.com has the exclusive domain name of Madeinchina.com as well as the rights to “Sourcing from China Starts Here”, The combination of these two gives us an unprecedented platform for change, allowing us to say “As the mainstay, there is no other choice in B2B real-name systems.”

A storm when conditions are ripe

Reporter: MadeInChina.com's real-name system will be seen by some as a reform opening a new age in B2B industry while others will consider it a rebellion against recent industry rules. How do you see it?

Michael:£¨smile£©The conditions are ripe for our system and it's in line with the development process of e-commerce in China. Buyers from all over the world are looking forward to high-quality “China Suppliers” as well as products made in China. While they are focused on “Made in China”, we will also help them to analyze, to test and to distinguish all the suppliers and, finally, recommend high-grade “China Suppliers”. We are providing accurate information that will allow us to continue deserving the trust of global buyers and domestic suppliers. That is our only goal; to provide an effective service that is worthy of their trust.

Reporter: Just now you mentioned about ripe conditions, so what about the geographical and human conditions?

Michael: Geographical condition is the land under our feet——the “world factory”. In the past, small and medium enterprises struggled for the opportunity to manufacture for others. But now “Made in China” is changing into “Created in China”, complete with our own brands. Shifting from earning bread and butter wages to profiting from our own brands is inevitable in the development of small and medium enterprises. Our product comes at just the right time to both assist with and benefit from this change. We also have the human condition. We have been researching real-name systems for a long time and have developed an experienced staff. Unlike those who do nothing to back up their empty claims, we are putting our whole heart into the effort. That we have gained so much support and trust within such a short timeframe is testimony to our outstanding execution.  

“Real-name System” is what enterprises urgently require
 
Reporter: Enterprises have been trading through suppositional platforms for a long time. Is “Real-name System” truly so urgently needed?

Michael: For small and medium enterprises it is not only urgently needed but demands the most immediate attention because in the sales process a product should not only have a name, but a way of differentiating and strengthening the value of that name. I’m familiar with both Chinese and western cultures. What’s the core of the western culture? Brand. When we search some information online, we will say “let’s Google” but not “let’s search”. That’s the power of a brand. Foreign buyers care most about the brand of a supplier and trust in a brand is the base of business. Now that our small and medium enterprises are developing foreign trade they need to understand these facets of international trading.

There is the other important reason. All traditional methods of product promotion, such as an advertisement on CNN, a whole page advertisement in The Times or subtitle advertisement during Prison Break are valued in US dollars or pounds. The cost can be prohibitive! Compared with doing business at MadeInChina’s e-commerce platform, valued in RMB, which do you think is more cost-effective?

E-commerce should be fast, free, legitimate and trustworthy, 

Only “Real-name System” can assure zero fraud

Reporter: What business fraud do you think “Real-name System” can put to an end? What practical help can it bring to SMEs?

Michael: Suppositional and irresponsible e-commerce opens the door to business fraud. The disadvantage of free membership is that it can not eliminate fraud, such as brand theft. Buyers can do nothing encountered with such fraud. The reason global buyers trust us is that our information is real. They know that the use of our branded "China Suppliers" eliminates business fraud and protects both the rights of buyers and the credit of suppliers.
 
Development of B2B: Preparedness ensures success, unpreparedness spells failure

Reporter: No one else in the country has dared take the path of a B2B real-name system, since no one knows whether it’s a shortcut to success or an abyss to failure. In promoting the real-name system MIC has displayed great courage, determination, speed and strength, which is not just rare in the domestic B2B field, but beyond the scope of most people’s imagination. So where do your courage and confidence come from?

Michael:£¨smile£©There is an old saying: “Preparedness ensures success, unpreparedness spells failure”. Our progress toward a real-name system has been fast, but always with a long-term direction. We have numerous advantages and opportunities, because this is a well thought-out system and we are well-prepared. Given that we are already trusted by global buyers and domestic suppliers, I believe our confidence is well-founded and entirely natural. 

In three years I will return a spring

Reporter: What will the real-name e-commerce be in the future?

Michael: E-commerce is reliable and real-name system is the trend throughout the world. Real-name systems will bring real prosperity to China’s e-commerce. China’s internet industry has been developing over a decade, but within three years of the introduction of the real-name system there will be a new spring in the B2B area.

About MadeInChina.com

As a leading B2B E-commerce export service provider in China, MadeInChina.com provides a B2B online marketing platform for both Chinese enterprises and global buyers. Based on HC International’s 15 years of B2B E-commerce service experience of 5 million users in over 64 industries, MadeInChina.com provides large variety of on-line and off-line integrative international trade service for Chinese suppliers and global buyers, such as supplier recommendation, promotion in global exhibitions and business matching, by the advanced information service techs (e.g. on-line searching and multidimensional exhibition) and the strict 3rd-party authentication system. With an experienced and professional team, MadeInChina.com provides the most update and top-quality service in the market for Chinese suppliers and global buyers.