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Heading for Differentiation to Create Bigger Profits by Brand Image

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2013-06-14
Established in Ningbo in 2002, Ningbo Swi Kuo Industrial is a Taiwan-funded corporation that has long specialized in non-standard precision hardware and parts applicable in industries such as automobile, electronics, construction, pneumatics, and oil hydraulic precision parts. Philip Kotler, dubbed as the “Father of Modern Marketing”, said, “In the world of excessive products and customer shortage, the key to success is to be customer-oriented.” General manager Mr. John Chang knows exactly what that means, and he tries to satisfy customers’ various demands by on-time delivery, competitive price, and industrial processing via high-precision equipment as well as auxiliary QC system as per client’s request. Currently, the company’s annual capacity is 24 million pcs. Foreign sales takes over 70% of company sales and targets at the US, Europe, and Asia. Heading for the 12th five year plan, industries of China are going through transformation to extend products from low end to high end, and Ningbo Swi Kuo Industrial is also increasing high-precision equipment and auxiliary inspection machinery to lift product price for profits.The company will first focus on “sophistication”, and then cope with the issue of manpower shortage and high cost. In addition, Philip Kotler’s words inspire Mr. Chang to realize that “OEM is not a long-lasting strategy, whereas brand image cultivation is all the most important.” In response to the increasing users and widening application of modern household appliances, in 2010 the company manufactured and applied patent for their own flat panel TV mount “U.S. Brown Bear” sold all over the world. In China, the company extends the products via distributors to retailers including Haier, Suning, and RT-Mart. So far the sales of self-owned brand takes 20% of the company’s operation, and “We expect to elevate the proportion to over 50% in the next two to three years,” said Mr. Chang, who is very optimistic about the prospect of the industry. When it comes to the “stable growth” principle called out by the government, Mr. Chang frankly told us that the economic condition of the first half of 2013 is still a path of ordeal, but he still has faith for this industry. He expressed, “We still have an enormous market to proactively probe for new customers!” He thinks that under the current circumstance the company should stay consolidated and well-prepared to monitor product quality, provide better after-market service, and accumulate combat emery for future challenges. In future prospect, Ningbo Swi Kuo Industrial is developing market shares in the emerging Southeast Asian nations such as Bangladesh and Cambodia. “Right now the South American market is also one of our expansion targets,” Mr. Chang continues, “we will set NO boundary and limit for the global market.” He also told us that the company’s purchase orders from Europe are severely effected by the EU’s anti-dumping measures, but he stressed that in the ever-changing marketplace the most important thing is a firm company attitude and motif to better improve techniques as well as quality, and expand larger foreign markets by self-perfection because “we can always brace ourselves even if the policies may change at any time.”
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by Serena Hsiao, Fastener World Inc.
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2013-07-10

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