Zhengzhou, China (PRWEB) June 05, 2014
The hot words "high-end, decent, upgrading" in 2013 not only describe the current China in its glorious period, but also reflect the ultimate goal China enterprises have been striving for. iAbrasive recently had an interview with Xue Xinhua, the general manager of Nantong Huixin Glass Fiber Co., Ltd, whose high reputation for its "upgrading strategy" has received universal recognition.
Make a Difference
The days before Spring Festival are the busiest time for enterprises of the year. According to iAbrasive, Huixin has witnessed a 20% annual increase in sales volume. Xue said, "After all, I am really glad that the company has achieved such a result." Because Huixin has lived through a quite embarrassing problem: industry competition by lowering the price.
It is reported that the major products of Huixin are fiber glass cloth for grinding wheels and fiber glass backing pads for flap discs. Export sales, including European, America and Southeast Asia, take up 40% of Huixin's production, the rest being sold in China. Although export sales proportion is not that high, all the products are strictly in line with export sales process and methods to gain popularity.
It is no doubt that within abrasives industry, higher grades means complicated process in production, which may definitely increase costs. As a result, Huixin had little advantage over competitive companies in terms of price. Faced with the problem, some companies held a negative attitude, reacting by simply lowering the price; However, Huixin figured out a different decision.
Instead of lowering the price, Huixin attempted to improve the product by strict management during materials, production and inspection. In Xue's point of view, "To guarantee product quality, the company shall have stricter control over each production process. Take the raw material 'resin' for example, in order to guarantee the stability of grinding wheel, Huixin has doing multiple research to make synthetic resin by itself." In addition, with its upgrading strategy, Huixin tend to be more positive in choosing clients. Huixin are unwilling to cooperate with those who only target at price rather than product quality. In other words, Huixin has given full play to the "upgrading strategy".
Look for Breakthroughs
If low price competition serves as the inner cause of industry chaos, then an important external factor of abrasives market downturn can be the whole environment.
Xue had a lot to say when talking about the economic situation in recent years. He added, "While the economic situation remained negative, raw materials and labor costs surge had brought unbearable pressure on a great number of abrasives companies. Despite the tough situation, Huixin sought for new breakthroughs to broaden development channel.
Innovation is the source of a company's vitality. Huixin developed the flap disc market. At the same time, Huixin brought in professional technicians in abrasives industry and turned to overseas high-end clients, such as Cologne, Germany as well as the exhibition of Saint Paulo in Brazil.
Xue expressed great confidence in the promising future of Huixin, he said, "Since abundant preparation for high-end market have been made, we will see a better result in the coming year.
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