Adjustment of willow handicrafts growth patterns underway
For fall of 2011, Huayu arts and crafts company was trying to do exports of Christmas items. Prior to this, the company has amassed a large number of willow arts handmade as Christmas items. In the past, hoarding willow products for export enterprises is unthinkable.
Over the years, willow enterprises have been MTO enterprises, namely a manufacturing mode that don't organize large-scale production until a receipt of order.
In order to seize export market of the willow arts handmade and crafts for Christmas, Huyu company has changed, the production model to some extent that organize production before the order is not received.
"What if they couldn't be much hot in market, for you've hoarded so many products?" Inquiries from reporters, Wang Wenzhuang, the company's boss, replied: "No, I bet not."
Troubles behind the change is challenges of rising raw materials prices and labor costs, soaring exchange rate and other factors who are eating into corporate profits.
Wang said that the incremental costs of production now can not guarantee the original profit margin by the traditional products alone. To solve problems, only what we should and can do is to work harder in the area of issue of product characteristics, which means to take the the path of others have not taken.
Wang vigorously promoted his new-developed willow crafts hand made to customers. As Europeans and Americans advocate greatly to green and environmental factors, so that plastic-made or plastic-mixed Christmas manufactured in Yiwu City and others have always been criticized repeatedly. For that reason, the moment as Christmas willow arts and crafts woven with natural materials supplies are introduced, they're widely favored by all ages.
Althought all hoarded products are scheduled to sell out, orders would be still continuously increasing. "This is the first pail of gold I've made from Christmas items exports".Wang Wenzhuang said with a smile, these products have more than 40% of gross margin, while that of the other merchants have made still remain little.
Read more at: Wickerchina: Not to be a loss leader seller again
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