Fujian zipper industry enters a golden period of development

On July 20, 2010, the fourth session of the zipper industry association of Fujian Province was held in Jinjiang, China's zipper capital. More than 100 large and medium-sized zipper companies from Fujian attended the meeting, including two zipper companies listed on the main business, namely SBS (SBS) and Fuxing (3F) zippers.

“Although the entire industry suffered a certain amount of impact from 2008 to 2009, the pace of production growth slowed down, sales fell, and some companies even suffered operating losses. However, from the statistics of China's zippers last year, the industry economy is recovering. In 2009, sales of zippers reached 34 billion yuan, a 6% increase over 2008, production reached 38 billion meters, an increase of 4%, and zipper exports increased by 8%, of which sales in Fujian reached about 4.8 billion yuan, accounting for 12.6% of total sales,” said Shi Nenghui, chairman of the China Hardware Association Zipper Branch.

After experiencing the buffered growth in 2009, the zipper industry in Fujian seems to have entered an era of explosive growth. In the first half of this year, the production and sales of the national zipper industry experienced explosive growth in demand. The vast majority of zippers were in short supply, and the performance of some companies increased by more than 100% compared with the same period of last year, especially the clothing package. The demand for bags is a rigid growth.

Performance: The industry is facing explosive growth

At the end of June this year, Fujian Haoxing Zipper Technology Co., Ltd. announced a revised announcement of the 2010 interim results forecast. The announcement shows that the net profit attributable to shareholders of listed companies for the period from January to June 2010 was 40% to 60% higher than the same period of last year. In the previous April, the company’s estimated net profit for the first half of the year was less than 30% higher than the same period last year.

Similarly, the Fuxing Group's Jinjiang Fuxing Zipper Co., Ltd. also ushered in fast-growing domestic and foreign market orders in the first half of this year. According to the company's internal statistics, orders from January to June this year increased by about 40% compared with the same period of last year, and the current orders have been scheduled until the end of August.

After half a year's wait and see, confirming that the industry economy is gradually warming up, many zipper companies have begun to plan to expand production capacity and regain expansion plans.

Since July, the Fuxing Group has been busy with the assessment of the load-bearing plant and plans to expand the existing factory building. At the same time, the expansion plan of the Shanghai branch of the group was again put on the agenda. "This year, the company has newly developed high-end categories such as 'new wear-resistant zippers', which have already introduced some high-end equipment for production and put it into the market with good results. High-end products are our next development direction, which means that capacity expansion is imminent. Now The industry has shown signs of recovery and our expansion plan has already begun.” said Guo Weili, executive vice president of Fuxing Group.

"This year, these companies have expanded their production capacity and accelerated the pace of development. This can be seen from the sales of zipper machinery, one of the two." Zhou Yiyang, director of the Secretariat of the Fujian Zipper Industry Chamber of Commerce, said. According to him, due to the expansion of production capacity of various enterprises, this year, the matching industry zipper machinery industry has emerged the longest selling season in recent years, slightly higher-end equipment must be booked three or four months in advance.

Phenomenon: zipper machinery manufacturing in short supply

"We have had very good sales since the beginning of 2010. Orders are scheduled for mid-July. During this time, we have not dared to accept new orders again. We can't make shipments." Faced with the market situation that turns day by day, Jinlong Zippers Machinery Co., Ltd. Jinjiang office business manager Secretary Fu You joyous mixed.

With the financial crisis going away, the zipper industry has maintained a good recovery trend since the second half of last year. The recovery of the zipper industry has led to the development of the zipper machinery industry in the supporting industry. It is understood that since the beginning of this year, Fujian zipper companies have been increasingly demanding equipment, and sales of zipper machinery industry have become warmer.

"Can not be the same day." Mentioned that the sales situation this year compared with the same period last year, Secretary Fu You said.

It is understood that Jinlong set up an office in Jinjiang in September 2008. Just after entering the Fujian market, Jin Long encountered a financial crisis at the end of the year. Under the crisis, the company’s conservative investment has caused Jin Long to suffer a cold market. Fortunately, after the crisis was a heavy one, from the end of last year, Golden Dragon's order volume began to rise, and in March this year, ushered in the continued sales peak so far.

Local zipper company Jinjiang Yitai Weaving Machinery Co., Ltd. also felt a good market. Since the beginning of this year, the company's domestic and international orders have increased significantly. According to Shen Zhenggang, head of production of the company, the purchase orders of local companies increased by about 20% from January to May, and the order of the company had already been placed in June.

“Now set a piece of equipment 3 to 4 months in advance, or it will be difficult.” At the internal meeting held by the Fujian Zipper Industry Association not long ago, many zipper companies reported that.

Analysis: Textile and apparel growth drives the zipper industry

“The demand for textile and apparel in the downstream industry of zippers has been growing well this year. In the first half of the year, most zipper companies are in short supply, and some companies’ performance has even doubled compared to the same period of last year. Almost the entire zipper industry in Fujian has felt an increase in downstream industry demand. The good news.” Xu Shuhu, chairman of the Fujian Zipper Industry Association, analyzed that.

It is understood that in the second quarter of 2010, the growth rate of the textile and clothing industry has accelerated and the industry continues to maintain an upward trend. According to the China Textile Industry Index, the sales revenue of the textile industry in the second quarter was 657.75 billion yuan, a year-on-year increase of 25.2% and a year-on-year increase of 16.1%. The sales revenue of apparel manufacturing products in the second quarter was 264.99 billion yuan, a year-on-year increase. 26.1%, a 9.0% increase from the previous quarter.

There are three main driving forces for growth in the textile and apparel industry: First, the recovery of the export market. The rapid growth of exports is the highlight of the textile and garment industry in the first half of the year. Driven by the recovery of European and American markets, in the first half of China's textile and apparel exports, textile exports increased by approximately 32% year-on-year, while exports of apparel and accessories grew by approximately 16% year-on-year. The growth in exports led to an increase in textile and apparel sales revenue. The second is the strong demand in the domestic market. From January to May 2010, the retail sales of clothing and clothing products in China increased by 23.1% year-on-year, which was 4.9 percentage points higher than the total retail sales of consumer goods in the same period, and became an important driving force for the growth of the textile and clothing industry. Third, the factory price of products rose. To ease the impact of rising raw material costs, the textile and clothing industry generally raised product prices in the second quarter, and the factory prices of industrial products rose by 1.7% and 0.6% respectively, which was one of the factors contributing to the increase in sales revenue. The volume and price rose together, which enabled the textile and apparel industry to achieve rapid growth in the first half of the year.

Development: The zipper industry should still stick to the brand development

Will gratifying performance in the first half of the year indicate that the zipper companies have weathered the difficult times and plagued the financial crisis? The views of people in the industry are not the same. “Now there have been market declines in some areas, signs of orders have declined, the situation can not be too optimistic, companies should remain calm.” Shi Nenghui believes that the future market trend or depending on the demand situation in the second half. Zhou Yiyang is more optimistic than Shi Nenghui's conservative. In his view, autumn and winter clothing, bags for the zipper product demand is high, the zipper industry will usher in the production season in the second half of this year.

Regardless of the future market, these two industry veterans believe that companies that have undergone crisis baptism should pay more attention to brand building. Shi Nenghui said that in the future, downstream industry customers will put forward more stringent requirements on zipper quality and service, zipper companies must jump out of the status quo of fierce competition in the low-end market, to the mid-high-end market, start the brand.

Xu Shuhu, President of Fujian Zipper Industry Association, 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 the company. Under the condition that the financial crisis market has shrunk, our entire industry has not moved by small profits, and we have earned reputation by sticking to our brand and quality as the foundation. This has quickly emerged from the crisis and continuously expanded market share for the entire industry. The rate has laid a solid foundation.This year, the chamber of commerce has guided two companies to apply for famous trademarks in the province, and two companies have applied for well-known trademarks in Quanzhou. In the future, we will continue to guide member companies to follow the brand line.”