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Company News

To promote enterprise development through technological innovation


The current market is constantly changing, the products refresh and update frequently, how can Pengxiang packaging found its own way for upgrading, and occupy the absolute leading position in the industry? The day before yesterday, Our journalist came to Pengxiang packaging, had an interview with the Boss–Mr.Cao  Chi Peng, Who shared his experience and thoughts on entrepreneurship, and the company's future development plans.

-Full techniques and experience bring him the faith to start PengXiang

Journalist: Why do you select the packaging materials industry? Is it a new field for you?

Cao Chi Peng: Absolutely No. Why I select this industry, in fact, it has a great relationship with my former experience. During the university, i learned high polymer materials as major, which is matched to this industry. After graduating from school, I also successfully entered a related enterprise for work, and continue to play the professional advantages, combined the theory with practice.

In 2013, I officially resigned and founded my own company: Jiaxing Peng Xiang Packaging Materials Co., Ltd, before what I thought was how to produce a good product, but now i am focused on how to operate a product.

Journalist: After you decided to start your own business, what is the main reason that you selected Tongxiang tudian to set up the factory?

Cao Chi Peng: It indeed took us a lot of time to do researches. We compared many towns under same conditions. And finally, we chose Tongxiang TuDian, it’s a decision based on overall consideration.  

First, the practical reason is that our raw materials are transported from the outside, mainly by trucks, and after the goods finished, we also delivery through trucks, so the requirement of traffic is high, we hope that the factory can be close to the highway. In this respect, Tongxiang has a very distinct advantage: good location, convenient transportation, close to Hangzhou and Shanghai. Also compared with those cities, Tongxiang has relatively small competition and lower costs; these are all valuable resource for entrepreneurs.

While throughout Tongxiang, tudian town is very close from the highway, the obvious geographical advantages, at the same time, the investment services from town tudian does very well, we feel warm .Therefore, considering the policy, cultural and environmental conditions in the future, I chose to settle tudian.

-Continuous innovation, and constantly enhance the core competitiveness

Journalist: Due to the strong competition, many companies were eliminated in the market, But PengXiang can back the trend, developed fast. On this year your sales are expected to reach 450 million yuan, such a good tendency of development, what is the core competence of your company do you think?

Cao Chi Peng: According to our company's development situation, I think our core competence mainly reflected in two aspects, one is that the technology keeps a leading level, and secondly, the management keeps continuously improvement, embodied in the hoisting of product positioning, market positioning, management strategy and other aspects.

Such as technology, one aspect is reflected in the improvement of product quality. Like our products, before there were two problems, one is prone to sputtering hole, and the other is empty metalizing line, these are the challenges of workmanship for all the industry. Solve these problems and improve quality are important to us. So we set up a technical group, to overcome difficulties one by one, through concentrated efforts, the two "stumbling block" were finally removed. This brings us immediately effect. For example, from the appearance of the product, the defect rate dropped significantly, and the barrier has increased dramatically.

Technological innovation is a continuous process, in order to maintain long-lasting vitality and competitive advantage during market; we must keep adhering to innovation. Therefore, we keep developing new products by improving technology, to enhance our competitiveness.

The product development keeps in front of others; it also requires us to have our own core team. Currently, we have 10 engineers. Due to the previous working conditions limited our company's rapid development, and staff quantity was relatively less. We now have our own factory, then I intend to expand employees, and then will continue to attract a number of innovative talents, to set up a special research and development center, let professionals handle professional issues.    Give them more space of creativity.

Of course, the technology has spawned a series of dividends. For example, bring down the cost of the products. For factory, the productivity improved a lot when technology improved, as for our factory, the productivity is twice higher than the industry average. 

In addition, we continue to expand the business advantages, take the creation and service as philosophy, through innovation and enhance value-added products and other channels, to provide more cost-effective products to customers, to enhance the company's competitiveness.

Starting again from scratch, extend the industrial chain

Journalist: start from scratch, when the company was founded, What kind of difficulty you have encountered?

Cao Chi Peng: We encountered financial, personnel, market distrust and other issues, I think that is very normal, every entrepreneur must face.

On the contrary, I think I was very lucky. Because of the previous experience, I accumulated a number of customers; many customers were willing to give the difficult orders to me. Although the company started production in the late  of May 2013, but in April we have got many orders.

Based on the customer resource, we can spend all of our time in production, to offer the best products to customers. As for me, I paid more attention to the product and service, to enlarge the company. There is a macro grasp, there are micro-focused.

I always believe that as long as the products are competitive, customer will cooperate with you. In fact, frankly, our customers are experts within the industry; they are professional in the purchasing materials. They know whose products with more cost-effective, they know and they will select.

Now our customers have reached more than 400, it is still continuing to expanding. For me, the customers are actually our friends; we always take friends’demand first, consider more for them.

Journalist: about future, do you have any positioning and vision?

Cao Chi Peng: from work to start my own factory, I experienced a new challenge. Now, the company is still relatively smooth in development, our annual sales maintains rapid growth. Next month, our second project will be officially started; the total investment is expected to reach 100 million yuan. After this second project be formally completed, the production lines will be increased to 12 from 8, the production capacity will be further enhanced.

Phase II will be focused on extended product. We now plan to through the market channels and technological advantages, to open one or two new product extension, then do the the first trial production in small quantities, if the feedback from market is good, we will expand the amount

I have always believed that the meaning of enterprises existence is to create business value, so we must continue to think about how to create greater value, which is based on the natural long-term planning. All along, I was very much like to do planning, it can be said that almost 30% of the time I spent working on the development of corporate planning. Fortunately, in the past few years, the business plans which I made were basically realized.

Of course, the company becomes bigger, it makes us known the weakness, and so now I have always insisted on learning, learn and share information with suppliers and professionals, encourage our R & D team to do trials, improve the technologies and product development to enhance the competitiveness. I am proud that we have the advanced technical team, and won the trust of customers.


NEXT: Moving into new factory