Fujian Zipper Industry On The Right Track

"In 2009, the zipper sales volume reached 34 billion yuan, an increase of 6% over 2008, and the output reached 38 billion meters, an increase of 4%. The zipper export volume increased by 8%. Among them, the sales volume in Fujian area is around 4 billion 800 million yuan, accounting for 12.6% of the total sales volume of the country. Recently, at the 2010 Fujian provincial zipper chamber of Commerce, Shi Nenghui, chairman of the China Hardware Association zipper branch, released the latest set of statistics.

The growth of statistics shows that since last year, the economy of the zipper industry is gradually recovering. In the first half of this year, the production and sales of the whole zipper industry in Fujian all witnessed an explosive growth in demand. The vast majority of zipper enterprises were in a state of short supply, and the signs of recovery in the industry were more obvious.

Faced with the increasingly improved economic situation, many zippers and zipper machinery enterprises have begun to regain the pace of expansion and reenter the track of rapid development. At the same time, zipper enterprises experiencing crisis baptism also pay more and more attention to building brand image.

Half year's performance is gratifying.

At the end of last month, Fujian Xun Xing zipper Polytron Technologies Inc announced the 2010 Interim results notice amendment notice. The announcement shows that the net profit attributable to shareholders of Listed Companies in 2010 1-6 increased by 40%~60% over the same period last year. In the previous April, the company's net profit in the first half was expected to grow by less than 30% over the same period last year. One of the main reasons for Xun Xing shares analysis is that the downstream industry has strong demand for zippers in the second quarter, and the adjustment and optimization of the company's customers and product mix have been further consolidated and promoted.

Similarly, Fuxing Group's Jinjiang Fuxing zipper Co., Ltd. has also ushered in fast-growing domestic and foreign market orders in the first half of this year. According to the company's internal statistics, the order volume increased by about 40% in the 1-6 months of this year, and the current order has been discharged to the end of August.

"Because the demand for clothing and bags in the downstream industry is showing a rigid growth trend, most zipper enterprises in the first half of this year are in short supply, and some enterprises have doubled their performance even compared with the same period last year. Almost all the zipper industry in Fujian felt the positive demand of the downstream industry increased. Shi Nenghui said, originally should be off-season, but ushered in the peak period of production and sales, good market in the first half of the year, let the enterprise fully feel the industry recovery.

Regain the expansion plan

After half a year's wait-and-see recognition that the industry economy is gradually getting warmer, many zipper enterprises begin to plan to expand their capacity and regain the expansion plan.

In the past month, Fuxing Group has been busy carrying out plant load assessment, and plans to expand the existing plant. At the same time, the expansion plan of the Shanghai branch of the group was also put on the agenda. "This year, the company has developed new high-end wearable zippers and other high-end products. At present, some high-end equipment has been introduced and put into production. High end products are our next development direction, which means that capacity expansion is imminent. Now the industry is showing signs of recovery, and our expansion plan has already started. Guo Weili, executive vice president of Fuxing Group.

It is understood that as early as 2007, Fujian zipper has begun to expand the overall layout of the road. At that time, Xun Xing and Fu Xing and other large enterprises built branches in different places, Xinyu, Xinxin and other medium-sized enterprises also took steps to speed up the layout of the office. However, when the layout of many enterprises has just started, the financial crisis in 2008 is coming, and the market demand is shrinking. Until this year, when the wait-and-see market was confirmed to be better, the expansion plan was mentioned by enterprises again. {page_break}

"This year, these enterprises have expanded their production capacity to accelerate the pace of development. This can be seen from the sales situation of zipper machinery one or two. Zhou Yiyang, director of the Fujian zipper chamber of Commerce Secretariat, said. According to him, as companies expand their capacity, this year, the zipper machinery industry in the supporting industry has seen the longest selling season in recent years. A few high-end equipment will be booked three or four months in advance.

Implementing brand strategy

Whether the good performance in the first half of the year shows that the zipper enterprises have managed to ride out the difficulties and bear the impact of the financial crisis?

"There are already some signs of falling demand in some parts of the market, and orders are showing signs of decline. The situation should not be too optimistic. Enterprises should remain calm." Shi Nenghui believes that the market trend in the future depends on the demand in the second half of the year. Zhou Yiyang is more optimistic than Shi Nenghui's conservative. In his view, autumn and winter clothing, bags for zipper products demand is high, zipper industry in the second half of this year will usher in the peak season.

No matter what the future market is, the two senior professionals in the industry believe that enterprises that have experienced crisis baptism should pay more attention to brand building. Shi Nenghui said that in the future, customers in downstream industries will make more stringent demands on the quality and service of zippers. The zipper enterprises should jump out of the fierce competition in the middle and low end market, and move towards the high-end market and start the brand.

Xu Shuhu, President of Fujian zipper chamber of Commerce, also suggested that guiding enterprises to vigorously promote brand strategy will be the main task of the chamber of Commerce in the future. "Brand is the lifeline of an enterprise. With the shrinking of the financial crisis market, our industry is not moving towards small profits. We insist on brand and quality and win credibility. This has laid a solid foundation for the whole industry to get out of the crisis and expand market share. This year, the chamber of Commerce has led two enterprises to apply for provincial famous trademarks, and two companies have applied for the famous trademarks in Quanzhou. In the future, we will continue to guide member enterprises to take the brand line. "