Zippers

China exported over US$207 million worth of zippers and parts from January to October 2004, an increase of 23% over the same period in 2003.

China-made zippers are known for their low prices. However, suppliers are finding it difficult to compete on price alone and are moving to midrange and high-end products.

This comprehensive industry analysis will help you take advantage of the sourcing opportunities presented by these enhancements in quality, function and design.

With profiles of 15 first-tier manufacturers and 55 other major suppliers from China, plus a comprehensive industry overview, you'll have a head start on pre-qualifying those producers that best meet your needs.

What you'll get

Deep profiles of 15 major manufacturers, highlighting production capabilities, export capacities, QC initiatives and future plans. These unique profiles are based on personal factory visits and exhaustive interviews with senior managers

Short profiles of an additional 55 suppliers that review production capacities, machinery used, export marketing infrastructure and more

A Product Gallery featuring 141 best-selling zippers from China, with detailed product specifications and full-color photographs

The results of Global Sources' latest supplier survey, forecasting price, product and development trends for the next 12 months

This report covers: nylon/polyester zippers, Delrin/plastic zippers and metal zippers

How you'll benefit

Discover which suppliers are moving to produce "upscale" products and see how that will affect the price and quality of zippers that you buy

Compare the advantages of the main production bases in China and see which best meet your needs

Get detailed Price Guides for low-end, midrange and high-end nylon/polyester, Delrin/plastic and metal zippers

Find out if zipper exporters in China will be increasing prices in the next 12 months and learn which suppliers are best placed to absorb increased input costs themselves

Executive summary

China's zippers and parts industry has been growing an average 18 percent for the past five years. At US$207.7 million, exports from January to October 2004 are up 23 percent over the same period in the previous year. Finished and semifinished zippers account for 79 percent of shipments and the rest are zipper parts. About 15 percent of the staggering 21.2 billion meters of annual zipper output is exported, while the rest is sold to domestic manufacturers and exporters.

Although low-end products still dominate output and exports, intense competition in this highly mechanized industry is pushing many large and well-established suppliers to midrange and high-end zipper production.

The following are some of the key trends we see in China's zippers export manufacturing industry:

• Export growth for finished and semi-finished zippers, in terms of value, is expected to remain at 25 percent in 2005, but domestic sales are expected to surge as garment exports from China increase, following quota elimination.

• Suppliers moving up-market are improving the quality, design and function of new zippers. These makers are releasing zippers with multicolor or zircon-inlaid teeth, patterned tape and customized sliders and pull tabs.

• These suppliers will also be using more imported or branded materials, despite higher costs, because of the significant improvements they bring to zipper performance and durability.

• The majority will be raising prices by at least 10 percent in response to higher material and operating costs. Prices have already risen in 2004, but most makers have to inflate them further this year because raw material costs continue to increase.

• Many suppliers are improving production efficiency to minimize wastage from defective zippers and cut operational costs. Some of the midsize and large companies are automating some or all production processes to improve efficiency.

China suppliers produce nylon/polyester, Delrin/plastic and metal zippers for export. Nylon dominates exports accounting for more than half of total shipments.

The Products & Prices section in this report explains the differences between low-end, mid range and high-end zippers in each product category. The Manufacturing module describes the production processes for each type and the international quality standards followed by China suppliers.

The China zipper export manufacturing industry is comprised of 200 small to large enterprises, 40 percent of which have direct export capability. Sixty percent of these suppliers are private locally owned, 20 percent are private foreign-owned, 15 percent are joint-ventures, and only a few are state-owned.

The 70 suppliers featured in this report reflect the industry: 80 percent are private locally owned, 18 percent are private foreign-owned or invested, and the rest are state-owned.

Industry overview

China's zipper export manufacturing industry is slowly but steadily moving to midrange and high-end production. Low-end products will still dominate production, but more suppliers are releasing value-added zippers with multicolor teeth, patterned tapes and special functions to distinguish themselves from competitors.

Increased competition in the low-end is pushing large suppliers to move to more upscale manufacture. China zippers are known for their low prices, which start at US$0.03 for a #5 20cm nylon model. But suppliers are now finding it more difficult to compete on the basis of price alone. Many makers are thus going upmarket to carve a niche and distinguish themselves from conventional low-end bulk manufacture.

In general, suppliers are moving upscale within their product lines and not shifting to zippers made of other materials. Makers that produce nylon zippers are producing more midrange and high-end versions in nylon itself, and not changing their product line completely to, say, metal zippers, which are considered higher-end than nylon.

Suppliers shifting to upscale products are usually large private companies, local or foreign-owned, with direct export capability. Most of these companies have been in the business for 10 years or more.

All 15 companies we visited for this report have stopped or significantly decreased production of low-end models. Sixty-seven percent of these suppliers have been operating for 10 years or more, and 27 percent have been making zippers for more than 20 years. The rest of the companies have been in the business for at least five years.

Suppliers that are moving upmarket are intensifying R&D work and purchasing advanced equipment to enhance their capability in designing value-added zippers. The latest designs from China have tapes printed with colorful patterns or woven in multiple colors. Pull tabs are being made from a variety of materials and are customized to suit buyers' requests, including the etching of logos onto the surface. Even zipper teeth are being dyed or electroplated in gradated colors. Some new releases are also water-resistant and fire-retardant.

Upscale zippers not only have better design and function, but improved quality as well. Suppliers that are moving upmarket are using imported and branded materials to enhance quality. These include Delrin, Tepcon and Bayer plastics, which are priced significantly higher than locally made materials, and are more durable.

Steady exports, domestic sales up
Export sales of zippers and zipper parts from January to October 2004 were US$207.7 million, up 23 percent from the same period of the previous year.

Finished and semi-finished zippers make up 79 percent of total shipments. Exports in the first 10 months of 2004 amounted to 3 billion meters worth US$167.3 million, up 18 percent in terms of volume and 25 percent in terms of value over shipments made in the same period in 2003. Zipper parts make up 21 percent of total. Exports for the first 10 months of 2004, with 16 million kilograms worth US$40.4 million, were up 6 percent in terms of volume and 15 percent in terms of value over shipments made in the same period in 2003.

Samples of supplier profile

Fujian SBS Zipper Science and Technology Co. Ltd
Fujian SBS is China's largest zipper manufacturer, producing about 948 million meters each year. The company has been producing zippers for more than 20 years, and its in-house SBS brand is widely recognized across the country.

Seventy percent of the company's shipments carry the SBS label, and the rest are produced for OEM clients such as Decathlon, adidas, Disney and Kappa.

The ISO 9002 and ISO 14000-certified company has production bases in Quanzhou and Shanghai, and exports to more than 40 countries worldwide. The United States absorbs 30 percent of zipper exports, the European Union 26 percent and the rest are shipped to countries in Asia and the Middle East.

Fujian SBS has a vertically integrated facility where nearly all production processes from mold development to monofilamenting, diecasting, painting, electroplating, tape weaving, stitching, bleaching and dyeing are done.

Products
Fujian SBS exports finished zippers and chains, and buyer-specified sliders and accessories. The zippers are used for garments, outdoor equipment, bags, footwear and home furnishing.

The company produces all zipper types, nylon accounting for the bulk of exports with a 53 percent share. Metal zippers come second with 26 percent, and plastic zippers make up 21 percent.

Prices depend on the size, materials and length. Metal types are the most expensive, and nylon versions are the cheapest.

Zipper tapes are woven from nylon, cotton and polyester using yarns sourced from Taiwan and Hong Kong. For nylon zippers, some monofilaments are made in-house, but most are imported from Taiwan. The teeth of metal versions are made from copper, nickel and brass, and these are imported from South Korea, because they are of better quality.

Manufacturing
Fujian SBS has more than 5,000 automatic-production machines capable of producing 83 million meters of zippers monthly. Its production area is divided into die-casting, nylon, plastic and finished zipper sections with workshops for mold making, dyeing, bleaching and electroplating.

The Global Sources team toured the 150,000sqm Quanzhou plant, which is equipped with 150 die-casting machines of different capacities, used in the production of pull tabs, sliders and boxes. There are 2,000 automatic weaving machines imported from Taiwan and the EU, along with hundreds of zipper finishing machines for gapping, stripping, trimming, cutting and top/bottom stop setting.

Sample of product gallery

Nylon/polyester zippers Chicheng Co. Ltd Model: #5 coil water-resistant close end Minimum order: • Packaging type: • Delivery time: • Indicated price: US$0.35 Description: #5 nylon zipper; closed end; 10cm; auto-lock; water-resistant

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