Loctek's overseas warehouse. [Photo provided by Loctek]

Loctek's production workshop. [Photo provided by Loctek]

By Jin Lu

At the 135th session of the China Import and Export Fair, Ningbo's Loctek Ergonomic Technology Corp. made a notable impact.

"We received more than 50 business cards just this morning, and that's not counting new customers who reached out to us on WeChat directly. Most of the potential clients hail from South America, the Middle East, and Southeast Asia," said Shao Yun, Loctek's foreign trade manager on the first day of the fair.

The company's innovative electric lifting bed, with its "bed above, desk below" structure, drew significant interest from international clients.

Taking the Unconventional Path

Under the dynamic leadership of its chairman, Xiang Lehong, Loctek is no stranger to the spotlight.

The company recently announced plans to raise 500 million yuan, dedicating 400 million to an overseas warehouse project in Georgia, USA, which will expand their overseas warehouse storage area by 40%.

Known for its daring entrepreneurial spirit, Loctek began its journey in 1998 when Xiang ventured into the OEM business with microphone stands and speaker mounts. This move laid the groundwork for later expansions into TV mounts and other products.

After a few uneventful years, the global financial crisis erupted, prompting a strategic pivot away from OEM towards direct-to-consumer sales via cross-border e-commerce in 2011. "Every crisis contains opportunities. At that time, I thought, if I can manufacture TV mounts, why not make desk frames? The two are quite similar," Xiang explained. This approach spurred innovations such as the Loctek standing desk, designed to protect the lumbar spine, analogous to how TV mounts allow for a raised head position to safeguard the cervical spine.

Xiang implemented significant reforms within the company, phasing out low-tech products, concentrating on product refinement, assembling a research and development team, and focusing on core technologies.

By 2015, Loctek had launched its first pneumatic intelligent lifting platform and desk. In 2017, it debuted the "FlexiSpot" brand internationally, going public on the Shenzhen Stock Exchange a year later.

Establishing Overseas Warehouses

As cross-border e-commerce gained traction, Loctek was already establishing its own online stores and overseas warehouses, positioning itself ahead of market trends. The company also focused on expanding its domestic market presence, integrating local and international marketing strategies effectively.

During last year's November 11 shopping festival, Loctek's standing desks topped sales charts on Tmall, JD.com, and TikTok; they continued this success into the "Black Friday" promotions.

"A brand is defined not only by its product design, aesthetics, and quality but also by the service it provides. Our goal is to expand our range of services and increase our competitiveness," said Xiang.

According to Xiang, over the past few decades, the rapid growth of China's OEM exports was mainly driven by an ample supply of primary labor. However, he observes that significant shifts in population dynamics and the depletion of land and other resources are undermining the sustainability of traditional OEM and ODM businesses, which are plagued by low input-output ratios and high resource consumption.

"Cross-border e-commerce occupies the high-value ends of the ‘smile curve', focusing on brand marketing and R&D, which allows for a longer value chain and higher added value compared to traditional OEM manufacturing and export," Xiang explained. "Leveraging this model along with China's abundant talent supply enables brands to extend their value chains and enhance their brand impact through cross-border e-commerce."

Xiang provided further insights through figures: "There are over 10,000 large-scale international trading companies in Ningbo. If they all transform into independent cross-border e-commerce brands in the next 5 to 10 years, Ningbo could become a magnet for millions of job-seeking college graduates." This influx of talent and a potential doubling of sales income could significantly enhance Ningbo's city influence.

"I hope that as Loctek continues to grow and expand, it will not only create more jobs but also help other international trading companies foster their own high-quality, independent brands and expand their global reach," said Xiang.