I am selling coffins to Europe: An extremely profitable business

企业   2025-01-07 08:10   山东  

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Coffins, often perceived as solemn vessels of departure, carry not only emotional significance but also immense economic potential. In China’s Shandong province, the coffin industry has evolved into a mature and lucrative business chain, with exports reaching as far as Japan and Europe.

For instance, over 90% of coffins used in Japan are manufactured in Cao County, Heze City, Shandong, with two local companies exporting more than 500,000 coffins annually to the Japanese market. But beyond Japan, Heze has carved a niche in the European market, leveraging its low-cost yet high-quality materials.

This article explores the story of Lisa, a 29-year-old former educator who transitioned into the unique field of coffin exports, targeting the European market.

In July 2023, Lisa, weary from her demanding teaching job, decided to quit and explore new opportunities. After stumbling upon an opening at a local export company, she learned she would be working as a sales representative for coffin exports. Despite initial hesitation, she was intrigued by the business’s potential.

"Everyone eventually needs a coffin," her prospective employer explained during the interview, emphasizing the industry’s enduring demand. The factory tour that followed revealed a high-tech assembly line producing coffins as efficiently as furniture. From raw wood cutting to carving intricate designs, the process was streamlined and methodical.

Unlike traditional Chinese coffins, characterized by their solemnity and heavy red or black lacquer, European coffins are lighter, often six-sided, and adorned with religious carvings. Inside, they include a set of bedding - a base layer, pillow, and quilt.

Lisa’s main market is Italy, where the funeral customs differ significantly. In contrast to China, where coffins are often ceremonial and not cremated with the body, Italian customs require coffins to be cremated along with the deceased. This makes lightweight, flammable materials like Chinese paulownia wood highly desirable.

Heze, known as the "Paulownia Wood Capital of China," is perfectly positioned for this market. Paulownia wood is light, moisture-resistant, easy to carve, and burns well - ideal for cremation coffins.

Lisa's factory, located in Dongming County, near the coffin export hub of Cao County, strategically targets the high-profit European market rather than relying on bulk exports to Japan. A single coffin sells for $90 to $150, depending on the material, while its retail price in Europe ranges from €1,000 to €2,000 - a markup of nearly tenfold.

The factory’s operations are tailored to client needs. European buyers, including funeral homes and wholesalers, provide specific designs, dimensions, and carving patterns. The factory then produces samples for approval before starting mass production. Orders typically begin with a 20-foot container of 60 coffins, with production cycles taking about 30 days. Shipping from China to Italy takes approximately 55 days.

Despite her enthusiasm, Lisa faced a rocky start. For an entire year, she struggled to close a single deal. "One to two years without sales is normal in this industry," her boss had reassured her during the interview.

The coffin export business is not without its challenges. Seasonal fluctuations impact demand, with peak sales occurring during Europe’s colder months, when mortality rates among the elderly rise. In addition, the COVID-19 pandemic disrupted supply chains, driving up shipping costs. For instance, the cost of shipping a 40-foot container soared from $1,800 pre-pandemic to over $7,000 at its peak.

Lisa’s first breakthrough came unexpectedly in September, when two African clients - a man and a woman - arrived at the factory without prior contact. Through a mutual connection, they expressed interest in American-style coffins, which differ significantly from the European designs Lisa’s factory specializes in. American coffins often feature a dual-lid design, allowing partial viewing of the deceased.

Despite the language barrier and logistical challenges, the clients insisted on immediate payment and contract signing, placing an order for 90 coffins. This unexpected success boosted Lisa’s confidence and underscored the global potential of the coffin trade.

Lisa’s daily routine involves meticulous client management. Mornings are spent updating product listings on platforms like Alibaba and managing social media accounts on Facebook, TikTok, and Instagram. Afternoons are dedicated to communicating with European clients, whose time zones align with her afternoon hours.

Her persistence paid off when two Italian clients visited the factory after discovering her posts online. One client, who owns a coffin factory in Romania, praised the efficiency and reliability of Chinese production. Although Romania is a major exporter of wood products, labor inefficiencies led him to seek external suppliers.

Lisa’s journey exemplifies resilience and adaptability in a niche yet vital industry. As she continues to expand her client base, she remains optimistic about the future. "Death resonates with everyone," she reflects. "In this business, language barriers and cultural differences seem insignificant."

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