Xiamen, as one of the most important trading ports in the country, has become a microcosm of the "export-oriented" manufacturing industry. In the bathroom industry, it is known as the "Bathroom Silicon Valley."

Named after "Great Xia's Gate," meaning the gateway to the nation, Xiamen has historically been a significant hub for foreign trade. In 1689, the British East India Company exported tea directly to Britain from Xiamen Port for the first time. Since then, Xiamen's advantageous geographical location and commercial tradition have fueled its ambition to export Chinese-made products to the world.

Xiamen's advantage is built on its port distribution. However, with the advent of the era of global trade and the upgrading of supply chains, good products can now reach distant markets through various means. Trade is no longer the "privilege" of ports, and the value of industrialization is constantly being reshaped. Only by first developing a core industrial base, making products well, and then selling them can the full potential of trade be realized.

Thanks to its developed trade system, Xiamen's pillar industries are transportation, warehousing and postal services, information technology, foreign trade, and finance. Compared to cities of similar size, Xiamen's manufacturing industry started relatively late.

Among Xiamen's many industrial clusters, the plumbing and bathroom industry is a naturally developed specialty. From scratch to "Bathroom Silicon Valley," the development of Xiamen's plumbing and bathroom industry cluster is a story intertwined with innovation and perseverance:

Around 1976, the nascent plumbing and bathroom industry was like a tender shoot breaking through the unknown plain. For Xiamen, with its unique geographical location, trade was ingrained in the genes of its people and businesses. However, committing to production and building the industrial chain was more challenging than imagined.

At that time, not only were most of the production equipment and raw materials purchased from Taiwan, but the local businesses also struggled with operational capabilities. To cultivate the first batch of skilled technicians, Xiamen displayed its full inclusiveness by attracting Taiwanese businesses and even more international brands to set up factories.

This "cell division" mindset proved effective, and the clustering effect began to emerge in the 1990s. As the industrial chain gradually improved, more and more plumbing and bathroom talents and large companies naturally came to Xiamen in search of resources, including the Jianlin Group, which holds over 2,000 patents.

A storm was brewing. In 1989, when Jianlin Group moved its factory to Xiamen, it was targeting the imminent rapid expansion of the industry cluster. At that time, there was a joke circulating in the plumbing and bathroom circle: "If you don't place orders in Xiamen, you're not a top brand."

After nearly fifty years of development, from "nothing" to "top-tier," the total output value of Xiamen's plumbing and bathroom industry cluster has reached 33 billion yuan, with four of the seven listed plumbing and bathroom companies in the country located here. Their products are exported to over 180 countries and regions worldwide.

Xiamen is not the "hometown" of the plumbing and bathroom industry. However, whether it's the long history of outward growth or the proactive spirit of adaptation in the modern industrial era, Xiamen's industrial arc aligns closely with well-known plumbing and bathroom companies like Jianlin, all thanks to one key factor: the value of diversified operations.

New Cross-Border DTB Strategy, Diversified Operations "Feed Back" Into Independent R&D

As the "Bathroom Silicon Valley," Xiamen's plumbing and bathroom industry cluster is home to many experts. Take the Jianlin Group, for example, which holds over 2,000 patents. In 1989, when the Jianlin Group moved its headquarters to Xiamen, it was eyeing the imminent rapid expansion of the industry cluster. This indeed led to substantial growth for the company. However, more than 30 years later, it now faces new challenges.

One current trend is that in recent years, OEM factories have become a trend in the plumbing and bathroom industry, leading to increasing product homogenization and price wars, with competition becoming increasingly fierce. The paths of internal circulation and traditional B2B foreign trade are becoming increasingly crowded.

In response to the competition, Jianlin Group began to "find another way." From its perspective, it is inevitable that different roles within the industry will "erode" each other's markets. Around 2020, despite traditional B2B foreign trade—mainly through exhibitions—accounting for a significant portion of Jianlin Group's business, the company still chose to explore new breakthroughs. One feasible option identified by Jianlin Group was the cross-border e-commerce channel represented by Amazon.

The focus remains on B2B. Unlike traditional foreign trade models, where B2B companies need to sell products to distributors for layered distribution or fulfill OEM orders for large brands, the advantage of cross-border e-commerce is that it can quickly connect globally.

One context is that Amazon Business, as a new direct procurement channel for global enterprises, offers B2B services to help B2B companies eliminate middlemen and more efficiently and cost-effectively meet the procurement needs of corporate and institutional buyers. Currently, Amazon Business has over 6 million corporate and institutional buyers worldwide. Last year, it launched the Industry Belt Accelerator Program, aiming to cover 100+ industry belts within three years, helping industrial and trade enterprises transition from traditional manufacturing and supply chain restructuring to digital transformation and global brand building.

Thus, Amazon's push to develop global industry belts has provided Jianlin and other core enterprises in Xiamen's plumbing and bathroom industry cluster with opportunities to quickly establish partnerships with Amazon Business. Through initiatives such as the Industry Belt Accelerator Program, the Key Account Exclusive Service Plan, the Fujian Group, and the Fujian Living Room, a rich environment has been created for government, enterprises, and service providers to collaborate and directly reach global consumers and business buyers.

In 2021, Jianlin joined Amazon, focusing on Amazon Business, and deeply experienced the advantages of DTB (Direct to Buyer). Most of Xiamen's plumbing and bathroom companies have evolved from OEM factories. Cross-border B2B buyers are more complex than previous distributors, with vastly different product needs and usage scenarios in different markets. In their long OEM and exhibition careers, manufacturers have been operating behind the scenes at high speed. The future challenge is to enhance their R&D capabilities, pushing them to the forefront to meet the preferences and habits of the audience. Making strong market and consumer insights from behind the "curtain" of trade shows might not be as simple as imagined.

Like Jianlin Group, most plumbing and bathroom companies have been investing in R&D and design for some time. Although their product R&D and manufacturing speed far exceeds the market, with several patents and design awards in hand, market-side sales validation is lagging, making it difficult to sell products to the B-end while the C-end sales have high return rates, significantly increasing trial-and-error costs.

As Huang Jie, head of Jianlin's cross-border business, put it, "Cross-border e-commerce is becoming Jianlin Group's eyes through Amazon."

Another core company in Xiamen's plumbing and bathroom industry cluster, Ruierte, shares the same sentiment.

Since its inception, Ruierte, which specializes in water tank accessories and toilet products, has placed a strong emphasis on technological R&D. The company has obtained over 1,800 patents and invests heavily in R&D innovation every year. However, despite this, exporting independently innovative products globally still faces many constraints.

"For bathroom technology companies, the challenges of going global include market research, cultural differences, brand recognition, international logistics, after-sales service, and compliance issues."

In 2021, Ruierte sought new avenues and joined Amazon. Currently, Ruierte sells nearly 20 ASINs on Amazon, with a shop rating of 4.6 stars. The stable growth of Amazon Business's B2B business has become its second growth curve and is becoming its next focus area.

For Ruierte, the biggest change is that everything has sped up. Ruierte can see consumer feedback and reviews in real-time, which drives rapid iteration. For example, Ruierte discovered that Americans tend to be larger than average, so they optimized the width and height of toilet seats.

"Whether it's individual retail or business procurement, needs can be understood faster." Ruierte stated that the relatively standardized process of cross-border e-commerce is one of the reasons why they can focus more on market research and innovative R&D.

Amazon Business Aids in Innovative Growth, from Foreign Trade Seller to Global Brand

Despite the continuous praise for self-developed products, the long-term development issue has started to trouble Xiamen's plumbing and bathroom companies: Products are selling well, but how do they build a brand?

After all, branding is a step above product sales in terms of customer perception. In the traditional transaction chain, industry belt merchants are often at the end of the value chain, making it difficult for factory players to control brand value.

Cross-border e-commerce is emerging as a potential solution. Taking Ruierte's own experience as an example, traditional foreign trade market B-end customers are more cautious in product selection, while cross-border e-commerce buyers are more receptive to new things, such as smart toilets. Therefore, bathroom companies that focus on innovation have more opportunities to reap brand dividends.

On the other hand, potential consumers and corporate buyers of plumbing and bathroom products do not have absolute brand loyalty. With the trend of precise marketing in cross-border e-commerce, there are more and more channels and touchpoints to build brand power, making it possible to overtake competitors.

Jianlin Group's attempt might serve as a model. From its perspective, Amazon stores, as a complete brand field, can allow buyers to have a more comprehensive understanding of Jianlin, from checking past orders to previewing products in 3D, reviewing project applications, and completing inquiries, with a single click.

At the same time, Jianlin also creates product portfolios based on sales data and industry needs to offer products that meet the needs of different buyers in different markets, achieving accurate market research for overseas markets.

With the help of cross-border e-commerce, Ruierte has developed a new model that covers market research, product design, independent production, and global distribution. The company focuses on product innovation while simultaneously expanding its sales network and accelerating the internationalization process. This approach to expanding B2B services and cultivating a global market not only enhances product competitiveness but also boosts brand value and long-term development.

For Xiamen's plumbing and bathroom industry, cross-border e-commerce is reshaping its traditional development model. By leveraging platforms like Amazon, local businesses can go beyond being manufacturers and take control of their brand image, stepping out from behind the scenes to take center stage in the global market.