The founder and general manager of Shandong Hengwang Group, Liu Mingtao, sees profound meaning in the proverb "吃水不忘挖井人" (those who drink water should remember those who dug the well). For him, it goes beyond a common saying. Currently, the group dispatches domestically produced drilling equipment to the African continent regularly. Liu Mingtao calculates that each drilling machine represents at least one well, capable of solving water scarcity for an entire village. He finds great satisfaction in this endeavor, considering it not just a business but also a benevolent act.
The foreign trade manager presented a lead to Liu Mingtao: Several African countries' buyers have shown keen interest in Hengwang's drilling equipment. He decided to personally communicate with these purchasers, accompanied by a translator, after obtaining their contact information.
Through in-depth communication, the mystery was unveiled. In water-scarce and geologically challenging conditions in Africa, manual well digging is no longer feasible. Even conventional machinery is often inadequate. Only with the help of specialized engineering machinery can wells be successfully drilled. Compared to expensive European and American drilling machines, the ones from Shandong, China are synonymous with being "high-quality, affordable, and user-friendly." Local drilling teams and utility departments representing local governments in Africa sought Chinese-manufactured drilling equipment through various channels.
Upon discovering this situation, Liu Mingtao decisively adjusted the business strategy, focusing on what he considered a "grand cause." He strengthened control over the local drilling equipment supply chain in Jining, investing continuously in funds and technology to mass-produce Hengwang's own drilling machines. Throughout the transaction process, he collected customer feedback and made nuanced adjustments to match the usage habits of the local African people. Considering the widespread financial constraints in Africa, Hengwang optimized its drilling machines to achieve the "ultimate cost-effectiveness" by making choices in certain functionalities.
The concerted efforts in early planning, significant investment, meticulous operations, and strict control allowed Liu Mingtao and Hengwang Group to gradually establish their competitive advantage in the drilling field, particularly in the African market. Buyers warmly welcomed Hengwang's products, with instances of local government officials visiting to express gratitude. In 2018, staff from the Nigerian Embassy in China visited Shandong Hengwang Group. Upon meeting Liu Mingtao, the African guests were visibly excited, praising, "Chinese drilling machines are excellent!" Some even gave a thumbs up, acknowledging the substantial assistance provided by Chinese drilling machines in addressing water scarcity in African villages.
"I have a simple mindset. African friends really need these things, which are like a lifesaving straw for them. I genuinely want to help them because selling a drilling machine means adding a well on their side, solving the water problem for a village. But I'm a businessperson, without profit, I can't sustain the business. So, I have to find a balance between price and utility, which reflects the ability to control the supply chain upstream and downstream. It's not easy, but I won't give up," said Liu Mingtao.
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