Development Process of China Paper Processing Machinery

OCCWAY Development History
5月 15, 2018
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Development Process of China Paper Processing Machinery

In China, most paper processing machinery companies are concentrated in Wenzhou City, Zhejiang Province, Guangdong Province and Hebei Province, Wenzhou City and Guangdong Province, on which machinery companies mainly rely, post-print paper processing equipment. In Hebei Province, the machinery company mainly produces corrugated paper production lines and downstream equipment.

Since 1980s, China’s paper processing machinery manufacturing industry experienced the following four stages:

  • Extensive structure of family workshop
  • Production scale is the first indicator
  • Brand management with brand building as the first task
  • Throughout the industrial upgrading to enhance the overall quality and efficiency and enter the world stage

 

The first stage, the initial development. Due to the initial start-up and manufacturing of machines, there is no exact standard in the quality of the machines. Many machines will have problems in quality, and the quality of machines will vary from machine to machine and even from machine to machine of the same company. At this stage, the business owners in addition to going out to sell in the usual work, they must continue to improve the machine to make the machine more stable.

The characteristics of this stage are:

  • Small scale
  • There is no quality standard (whether or not to buy a good machine depends entirely on luck)
  • The market has a promising prospect in its infancy

In the second phase, development entered a mature period. Some companies had rapid implementation in the first phase, and planned advancements in various aspects such as products and markets, coupled with the rapid expansion of the market. Plus, due to China’s reforms and opening up, rapidly, this part of the company has entered a large scale. This part of companies entered the stage of scaled operation.

At the beginning of this stage, due to the large-scale operation, companies earned a lot of profits, and this stage is the best time for the bosses of the Chinese paper processing machinery industry. At the end of the year, more and more competitors entered the market. Many manufacturers began to frantically fight in price competition in order to seize the market. Profits were compressed little by little, and few were left. Most manufacturers began to work on products at this stage. By cutting corners and materials, it may be necessary to have 1,000 RMB worth of accessories and make some internal modifications. Maybe as long as 500 yuan can be done. It is easy to imagine how much adverse impact the price war has on this industry.

The characteristics of this stage are:

  • Scale management
  • Stealing work and reducing material becomes the unspoken rules of the industry
  • The market is rapidly expanding

 

In the third stage, industrial upgrading entered the world stage. In the second stage, some of the imaginative business owners have realized that price wars are extremely bad behavior for companies, customers and even the entire industry. They began to change their minds.

They began to go abroad and learn advanced technologies and management from Europe and America. They are deeply aware that only do they know the technological breakthroughs and management leadership can give companies, customers, and the entire industry positive guidance. They began to upgrade their industries.

Learn technology, learn management, buy advanced processing equipment, and introduce outstanding foreign management and technical personnel. It takes a lot of time, energy and financial resources to carry out a step-by-step industrial upgrade of its own company in light of its own actual conditions and basic national conditions.

Their products began to enter the world market.

The characteristics of this stage are:

  • Product replacement is very rapid, processing and quality have reached a higher level
  • The company began to orderly manage
  • The domestic market is about to enter saturation and begin to open up foreign markets

In the fourth stage, a small part led to the majority, comprehensive industrial upgrading, and fully entered the world stage. At this stage, companies that have gone one step ahead have begun to enter the world market on a large scale. At the same time, they have also driven the industrial upgrading of the entire industry. Most business owners are aware of the importance of industrial upgrading and their thinking has begun to change.

So far, in China’s paper processing machinery industry, 90% of the companies have set foot in the world market and the products are sold all over the world. With superior quality and relatively cheap prices, they have created value for customers in countries all over the world.

I also wrote a blog post titled  OCCWAY Development History  which is a company specializing in the production of Sheet Cutting Machine. You can click on the link above it will give you a more intuitive understanding.

 

Author: Stefan Zheng

Copyright attribution: OCCWAY

All rights reserved. Everyone must indicate the author, the original source and this statement in links when reposting.

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