How KODS Successfully Entered the Italian Market
After five years of strategic efforts, KODS, a subsidiary of Zhiguang Precision, successfully entered the European market, with Italy being the breakthrough market.
Challenges in the European Market
Europe has extremely high standards for industrial products. Price alone won’t win over European customers; only high-quality products can persuade them to choose a new brand, even if it’s offered for free. Initially, KODS aimed at German customers, but at an exhibition, German visitors showed no interest in KODS products. As a well-established industrial power, Germany tends to be skeptical of foreign brands.
Italy’s Openness to New Brands
In contrast, Italy’s market had a more open attitude towards new brands. As long as the quality was on par and the price was competitive, Italian customers were willing to give new brands a try. One of KODS’ first Italian clients was initially sourcing saw blades from Japanese manufacturers. However, due to the establishment of local Japanese distributors in Italy, the client lost access to direct supplies.
At an exhibition, this Italian client discovered KODS products and decided to give them a chance. In the first year, sales were modest, but the quality of KODS saw blades quickly gained recognition. The client realized that KODS blades could match Japanese quality while offering a price advantage.
Rapid Growth and Success
By the second year, orders increased significantly, with sales growing from several hundred thousand euros to millions. KODS’ brand visibility also increased when the Italian client featured the KODS name in an advertising video, which was widely shared and recognized by industry peers. This marked the beginning of KODS’ true breakthrough in the European market.
The Key to Success: Quality Over Price
KODS has firmly believed that focusing on product quality is the true key to success. In developed countries like Italy, price competition is secondary to the quality of the product. KODS has consistently delivered products that meet and exceed expectations, with over 30% of its products exceeding the quality of Japanese-made saw blades.
This success has built KODS’ confidence to expand further into the European market and beyond, backed by exceptional quality that sets the brand apart from competitors.
