Ask an Entrepreneur: Mike Murphy of IQAir taps into China’s Worried Mothers
If you’ve been in Beijing for a while, chances are you already know about Mike Murphy’s interesting journey from Christmas tree vendor to purveyor of high-end goods for your villa and IQAir filters. But what you probably don’t know are the secrets to his success, which largely rest on having one of the best networks in town.
You’ve been a big advocate for the need of clean air. Have you ever run into resistance?
In business, you are always facing resistance of some kind. When it comes to selling highend air purifiers, the most resistance comes from the skeptics. These are the people that believe the air isn’t that polluted or that it isn’t that harmful to you. Unfortunately, the local Chinese make up the majority of this group. There is a misguided belief that if you have lived your whole life in a polluted environment, your body will build up an immunity to it. This simply isn’t the case. There was a recent report showing that the cases of lung cancer had increased by 60 percent in Beijing over the past decade, while at the same time there was no measurable increase in new smokers. Certainly running an air purifier isn’t a guarantee you won’t get sick, but it goes a long way towards minimizing your risk.
What have been your most valuable resources as an entrepreneur?
The most valuable resource an entrepreneur has is other entrepreneurs. I grew up poor by US standards and without a father present. It’s because of this that I have always sought out mentors to help fill the void. My early role models came from the books written by and about successful business people, the most important of which was Dale Carnegie’s How to Win Friends and Influence People. When I started my own gardening business at sixteen, I built up a sizeable clientele, many of whom were successfully retired from businesses of their own. Over the years this wonderful group of seniors would indulge listening to my crazy ideas and continually encourage me to follow my dreams. Although most have since passed on, I still regularly call a couple of them who are now well into their eighties. Today, I am a member of Entrepreneurs Organization and regularly meet with a number of other business owners to share in the triumphs and defeats that mark doing business in China. I couldn’t imagine being successful without having a great group of people in my life to relate to.
“It may take us four to five times longer to sell an IQAir to a Chinese housewife, but once we do, we know that in time she will be back for more, and that she’ll bring her friends, too”
Your business is built on sales. Any secrets to growing and managing a strong sales team?
Strong sales teams are a function of many things, but one of the most important things is to recognize that not everyone can be a successful salesperson. We have learned to exit people that don’t prove they are up to the task very quickly, saving both parties many painful months of frustration. For those that do make the cut, we do all we can to empower them to succeed by equipping them with the necessary knowledge and tools for them to do their jobs properly.
How do you market your product to Chinese, as opposed to foreigners?
It took us five years, but 2011 has been the first year our residential sales to local Chinese surpassed our sales to expats. It has also been the first year we have landed some major sales to local Chinese corporations. Our marketing effort to the Chinese is very different than selling to expats. We believe we have to win the market one customer at a time. We win this customer over through education, building a trusting relationship, and great after sales service. It may take us four to five times longer to sell an IQAir to a Chinese housewife, but once we do, we know that in time she will be back for more, and that she’ll bring her friends, too.
You’ve been selling purifiers for five years. What do you see happening in the next five years?
The next five years for us are all about stability and expanding our market into the second and third tier cities. We are committed to establishing IQAir as the number one air cleaner on the market. We have a number of great products in the pipeline and I look forward to being able to support those as they become available. IQAir is here for the long haul and we look forward to being the go to team when it comes to air quality issues.







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