Cow! This company in Zhongshan can produce 7 billion sanitary napkins for women around the world.

Zhongshan Commercial Daily

Zhongshan Commercial Daily

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Function introduction industry information, authoritative release. Zhongshan Daily Newspaper Group’s media.

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In the Torch District, Zhongshan City, there is a”hidden champion” enterprise in China’s sanitary napkin industry-it has opened 6 companies in Zhongshan, Zhejiang and Hubei, Guangdong. The production base has an annual production capacity of 7 billion pieces; the word”Kawada” is a well-known brand in the industry.

Readers may ask:”Why haven’t you heard of this brand?” The reason is simple. Guangdong Kawatian Sanitary Products Co., Ltd. (hereinafter referred to as”Kawatian Company”) is a foundry company with a resounding”corporate brand””Instead of”consumer terminal brand.” In the 22 years since its establishment, Kawada has already surpassed the low-end and extensive stage, laid out the supply chain in advance, and made itself a high-tech enterprise that”customers cannot do without me”.

The experience of Kawada Company can provide reference for OEM (OEM) enterprises seeking transformation and upgrading.

Experience

The crisis awareness must be sufficient and the response speed must be fast

Mention OEM (OEM), ODM (on behalf of Most people associate it with terms such as”low-end” and”extensive”. Is it true?

Take general consumer goods as an example, the comprehensive cost is determined by the three links of production, sales, and brand. Terminal pricing cannot be separated from similar competing products, and most of the costs are consumed by sales and brand links; for the remaining production links, a single enterprise is often limited in terms of capacity, equipment, and quality. At this time, OEM companies with large production capacity and strong technology can provide”package” solutions around R&D, raw materials, production, warehousing, logistics and other links to help brand owners reduce costs and increase efficiency.

Kawatian Company is such a high-end foundry company.

“Kawada must always be in a state of leading technology, reliable quality, controllable costs, and products and services covering the entire supply chain in order to’customers cannot do without me’.” Li Zonglin, chairman of the company Said,”To do manufacturing is to’take life’. Enterprises must always maintain a sense of crisis and respond quickly.”

This pragmatic Xiaolan businessman entered the sanitary napkin industry in 1992. The setbacks he has encountered can indeed be described as”fighting”.

At the beginning of the establishment of the factory in 1998, the production waste rate was as high as 50%. Li Zonglin now smiled and said:“One more piece of waste is the cost and the loss. The host operator who controls the equipment is the key to controlling the rejection rate. The cost of training a qualified host operator is not lower than that of pilots.” In the end, Kawada Company updated equipment, Transformation to high-tech enterprises and other means have now kept the scrap rate within 3%, far below the industry average of 5%.

Since 2000, in order to improve raw materials, warehousing, logistics and other elements, and build a pattern to serve the national sales market, Kawada has successively opened three production bases outside the province in Hubei, Zhejiang and other places. The hardship of the process, Li Zonglin only used one sentence to summarize:”The environment outside the province is very different from that of Zhongshan, and I finally survived.”

In the middle of the night on May 31, 2016, all employees had already left work. , Zhongshan headquarters workshop caught fire due to short circuit of emergency lights, the production line was destroyed and production was completely stopped.”The delivery time is there, and the delivery cannot be made on schedule. The company will suffer heavy losses in terms of brand and money.” Since then, Li Zonglin has led the team to”break through the barriers” endlessly.

On June 16, the high-end products being produced by the Zhongshan headquarters were transferred to Xiantao, Hubei, Hangzhou, Zhejiang, and Huzhou The production of the three production bases temporarily resumed; in July of that year, Kawada leased factories in Zhongshan South District and quickly established a new production base to fully restore the delayed production capacity; in November of that year, the Zhongshan headquarters resumed production. The team introduced the most advanced equipment at the time, and the factory was transformed into a 300,000-class clean workshop with leading standards in the industry, which provided a guarantee for further improving product quality…

Li Zonglin said:”The headquarters will be’resurrected’ in 5 months. Some people say it is a miracle. In fact, this is the result of the long-term accumulation of crisis awareness and reaction speed.”

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Kawatian Company has built 6 production bases inside and outside the province. The picture shows the Hubei Xiantao Base

Evolution

Centering on the”supply side” planning, the layout of the”supply chain” transformation

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Wear a full set of protective clothing before entering the workshop to control automation equipment.

The chip industry has born famous companies such as TSMC and SMIC, which shows that as long as foundry companies occupy the”supply side” high ground, they can have the ability to influence customers and influence the market.

In Zhongshan, Kawada is committed to establishing itself as the”TSMC” in the sanitary napkin industry. The top ten domestic sanitary napkin brands, the world’s top 500 famous brands in Europe and the United States, and the emerging e-commerce micro-business direct sales brands, have actively asked Kawada to develop and produce new products that the market urgently needs.

Since 2011, Kawada has implemented 3 transformations and upgrades. First, the factory transformed from OEM to ODM, and upgraded from”production driven” to”R&D driven”. Companies began to focus on long-term planning, realizing self-“evolution” in stages, and mastering the initiative in the”supply-side” field.

Since 2014, Kawada has invested more than 30 million yuan every year to gradually update the production equipment of six bases, so that the procurement, production, warehousing, and logistics of raw materials will become lean and digital.

Since 2018, companies have established a marketing department, driven by big data, to grasp precise consumer market changes, and grasp the”wind direction” of new retail channels such as e-commerce and micro-commerce, and provide customers with major brands and start-up teams Provide”package” consulting services. Li Zonglin proudly said that the establishment of a marketing department is very important. Since then, Zhongshan Headquarters has had market research capabilities, and through the”Data Walk”, it has formulated precise annual R&D plans to provide customers with value-added services that were not available before, such as joint R&D, online direct sales, and industry trend analysis. The production base serves different types of customers and realizes that”customers cannot do without me”.

“In the upstream of the supply chain, Kawada has stable raw material supply channels; in the R&D process, it masters accurate market and laboratory data; in the downstream, it provides complete production, warehousing, logistics, and marketing. Directional service and counseling.” Li Zonglin concluded.

Today’s Kawada company, workers must wear a full set of protective clothing before they can enter the workshop to control the automation equipment. In the production process of sanitary napkins, problems such as foreign matter, packaging defects, and”short catties and lack of two” occur in the production process. Advanced testing equipment can automatically identify and automatically”kick away” unqualified products.

At the same time, Kawada is also willing to “spend money” for the R&D and testing department. The company has more than 30 patents, has passed the certification of high-tech enterprises, provincial engineering technology research and development centers, and has also obtained”Transcripts” such as FDA health registration, ISO9001 quality system certification, TUV German product safety certification, Intertek consumer product testing certification, and BV Bureau Veritas certification. At present, each production base is equipped with 10-20 R&D personnel, and the R&D team of Kawada has more than 100 people.

R&D

Production generation, R&D generation, reserve generation

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Li Zonglin introduced the company’s foundry products.

What will the future sanitary napkins look like?

“Sanitary napkins are listed in the cosmetics catalog in some countries and regions, and are medical devices in some regions.” Li Zonglin explained,”In other words, the rigor of the R&D system must be on par with that of drugs. Drug R&D Proprietary’small trials’ and’pilot trials’ are available for sanitary napkins. We have to focus on planning, process design, raw material screening, sample testing, trial, information feedback, product improvement and other links to achieve mass production.”

Now, Kawada has formed a three-level R&D system of”one generation of production, one research and development, and one reserve”. Li Zonglin told reporters that”Production Generation” is based on customer needs and combined with the company’s recommendations to develop and put into production products with stable quality in a very short time.

Speaking of the”R&D generation”, he cited as an example,”adult mild incontinence towels” have been widely used in Europe and America. This is a new product designed for some postpartum women, patients with specific diseases, and middle-aged and elderly people.”In China, due to customs and concepts, the product is expected to enter the consumption period in a few years. However, the product is ready for production at any time.” As for the”reserve generation”, Kawada has already combined””Internet +” element, trial production of”smart chip sanitary napkins”. Li Zonglin told reporters:“Implant a microchip in the sanitary napkin and connect it to a smartphone via Bluetooth. The sanitary napkin can measure the pH value, conduct a rough measurement of the infection status of the secretion, and display the data in the mobile APP to remind consumers. Pay attention to health conditions and provide interactive content of health knowledge. In the future, products can also be implanted with more sophisticated medical reagents and testing methods according to market needs.”

right

&

Talk

How does the manufacturing industry”reinvigorate the tiger”?

Enterprises must have the confidence to”make miracles vigorously”

💬Reporter: E-commerce and micro-commerce have profoundly changed the Chinese people Consumption habits, does this have an impact on foundry companies?

💬Li Zonglin:It should be said that challenges and opportunities coexist, which will ultimately test the strength and R&D capabilities of the company. The above-mentioned new consumption channels pay attention to”only fast but not broken”, pay attention to consumption experience, selling points, and demonstration functions. For foundry companies, we must quickly transform to provide such customers with”package” services such as story packaging, Douyin, online videos, promotional procedures, gifts, and new packaging materials. In addition, the development of products must pay attention to speed.

In the past, sanitary napkins were sold through traditional channels; now, the proportion of new retail has risen to 20%. Within 3-5 years, I expect the ratio will become”five to five.” The”net celebrity era” is indeed here!

💬Reporter: Zhongshan’s economy has entered the process of”revitalizing the tiger,” how can the manufacturing industry achieve a high-quality rise?

💬Li Zonglin: With bold investment and bold innovation, companies must have the confidence to”make miracles vigorously”. Going in the direction of innovation, supply chain, and all-round services will surely be able to overcome storms and become bigger and stronger.

I have worked hard in the sanitary napkin industry for 28 years and built a factory for 22 years. The experience I summarized is that”a company must have a structure that benefits others.” With others as the center, oneself can eventually become the center.

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Kawatian Company donated precision poverty alleviation materials to Deqing County, a counterpart of Zhongshan.

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Kawatian Company donated money to the cause of respect for the elderly in the Torch District.

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-END-

(The article comes from the character version of Zhongshan Business Daily on December 11)

Text丨Fan Zhanhao Figure丨Hong Xipeng

Editor丨Xu Xuan

Second Trial丨He Tengjiang and Hou Haiying

Third Trial丨Xu Xiaojiang

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