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Daming: A Tradition of Innovation

When thinking of the long traditions of China’s Time Honoured Brands, companies with a continuing history of more than 50 years, you might think first of the many traditional arts and crafts of China such as traditional Chinese medicine, clothing, art or tea shops. But would you think of optics or its science?

Among Beijing’s Time Honoured Brands (laozihao), the Daming Optical Company stands out as one of the few remaining laozihao dealing in this specialty.

Daming was founded in 1937 as a holding limited company by 36 shareholders from Tianjin, Shanghai and Nanjing. Over the years, it has developed from one single shop and its headquarters on Wangfujing Dajie, Beijing’s posh pedestrian shopping mall, to 63 chain stores and at least a 25 percent share of its market. Its chain store operations began in 1996, and the company reports annual sales of about 120 million yuan (US$15 million).

The optical business worldwide is undergoing consolidation. Recognizing this, Daming in 1998 merged with three other optical laozihao, including one established in 1864, to better position itself in a market that is now opening to the world in the wake of China’s accession to the World Trade Organization. Daming, as with other optical giants in China, is also competing on the world’s stage.

Ms. Hong, vice-general manager of Daming, explained, “In our opinion, there are two aspects to the secret of how a laozihao can withstand the times and remain competitive: maintaining traditions and innovating.” “Maintaining traditions” here refers to maintaining the precious traditions of the company in always providing quality products and services. We have to preserve and improve our flagship products and services that have been proven reliable over time. “Innovating” means continually reforming our enterprise's operations and management and our product range and services.

Since Daming’s establishment, “providing high-quality products and services” has been followed as a mandatory concept. Spectacles or eye glasses are somewhat unusual products in that their quality is not obvious; this opens the door to shoddy products made by non-professionals that can be sold for “bargain” prices.

Hong said, “The profits are really tempting, but we persist in setting prices based on quality raw materials and the good techniques that are required to make good products. We guarantee the quality of all the products sold at our 63 chain stores. We do this because we believe loyal customers are our eternal treasure.”

For decades, Daming has been famed for its experienced optometrists and their skills. Dealing with complex optical problems such as super high myopia and astigmatism is a company specialty, their “flagship”service. With their customer base expanding, Daming is comfortable in thinking it can adjust to business challenges in a proper and timely manner. 

In a new era characterized by fierce competition, “maintaining tradition” is far from enough. There is a common misunderstanding among some of China’s laozihao that a long history and established brand are sufficient to weather competition. But the hard knocks some laozihao have suffered proves that this is not the case in modern times. As Hong said, innovation is a must.

Innovations come in many forms at Daming, including four major and decisive ones. The first involved equipment. Daming was China’s first company to introduce computers for optometric use and other sophisticated machines from abroad in the late 1970s. Its most expensive machines cost about 300,000 yuan (US$37,500) each. Most of its older machines have been eliminated, although these technologies are frequently encountered in other optical shops.

To guarantee the reliability of raw materials and processing procedures, the second innovation involved establishing quality standards. Raw materials such as lenses and supporting frames are provided by large professional companies and undergo strict quality tests before they are used or sold. Central purchasing is used to buy raw materials needed at the chain’s 63 stores to ensure chainwide quality. Computerized stocking management is used to control distribution and inventories. Daming encourages experts from the Beijing Bureau of Quality and Technical Supervision to oversee the maintenance of the chain’s products to ensure quality.

Talented people are another essential element for sustainable development. Daming closely examines its staff’s professional certificates, but it also emphasizes practical skills in staff training, including that of its graduate staff members from the Optical Department of the Beijing Institute of Technology. Salaries are based on Daming’s optometrists’ skills and services and they are encouraged to learn more. Beijing has nine national high-level optometrists, seven of whom are on Daming’s staff. Daming clearly lists the qualifications of each of its optometrists, giving customers a choice specialists they want to trust. People with serious and complex optical problems can easily get the level of help they need. This service saves a customer’s time and ensures quality care, which the company has discovered is highly appreciated.

The fourth innovation involves services. In the early 1980s, Daming became Beijing’s first optical company offering “quick services”, that is, half-day service from eye examinations to obtaining spectacles. Previously, it might take a week. Life-long maintenance is also provided. Daming provides everyday maintenance, such as changing screws, for free. If needed, postal services are available for out-of-town customers. Daming also offers free consultations on optical problems, precautions, health care and therapy. For those with serious optical problems, special documentation is used to better observe individual treatment results. Customers can exchange or return spectacles at any time if they cannot adjust to their glasses.

Well-developed Time Honoured Brands can also be trendsetters. Daming was one of China’s first optical companies to bring sunglasses, contact lens and the use of Plexiglas to the mainland. Eye doctors even gave classes about how to use and wear contact lens. Daming’s pioneering work in researching the high-end spectacles market in China has added to its success during China’s rise.

Hong said, “In addition to providing quality products and honest services, enterprises should do some promotional work to consolidate their development.”