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2022-05-30

Homogeneous Competition is Never a Viable Strategy in Packaging Machinery

The 1st  Edition of ENVISION by SENYU HU, 30th June 2022

SENYU HU  Insight: Senyu Hu – Designing Engineer. And joined by Zhiwei Bao, GM.

zixin yuan round image  Editor: Zixin Yuan – Digital Marketing Coordinator

 

They Decided to Become Inferior and Play with Deceptive Gimmicks

The phrase “Made-in-China” has converted into a synonym for cheap and inferior products with osmosis. Especially in the packaging machinery industry, where manufacturers and suppliers have been competing with each other with a cheaper-and-cheaper strategy, while in the meanwhile nobody has done anything or invested anything in the development and innovation.

Inferior Quality for Cheaper Price

The inevitable result is such, we can find mountains of homogeneous products, for example, all the Chinese manufacturers nowadays produce cartoners almost the same, while the only difference is that the company may keep restrict control on their cost and sell products of an inferior quality yet cheaper price, so as to defeat their competitor in that way.

The Gimmicks of Servo-Driven

While others go for playing with gimmicks. Replacing the mechanical transmission with cheap servo motors, and then claiming that this is an advanced product of multi-axis servo-driven. The manufacturer may boast that their machinery is multi-servo driven, yet, in fact, they are still cheap craps with a lower-price focused strategy.

This is just a gimmick of old wine in a new bottle, without getting the performance actually improved and even getting the machinery produced cheaper and more inferior.

 

ELITER must Stand Out with Innovation and Take Transformation

“I have been long discussing with Zhiwei Bao, GM of ELITER Packaging Machinery about the outlet of this industry, especially in China. ” said, Senyu. Our common opinion is that to keep competing on price and making constant concessions to quality is not a sustainable strategy.

“This is not sustainable, both for brand recognition and company’s development. This is our common opinion”, said Senyu.

“However, a predicament set in front of us is how to go through such a tough time at the outset of our transformation.”, commented Zhiwei Bao, general manager of ELITER.

“Research, development ,and innovation call for constant investment and cash flow. The challenge is most evident at such an early stage of our transformation when we must to keep a healthy flow of cash while keep investing in the R+D+I of our upcoming ESTRENA Wrap-Around Sleever, as well as the Horizontal End-Load Case Packer which will be launched must later than the former.”, said Bao.

“We have no choice during these stages apart from taking, to some extent, the least concession to price. However, we still try to offer our machinery with quality the best possible with focus on performance and craftsmanship – a somehow medium for more strategy”. commented Zhiwei Bao.

“We still have to chart a relatively long course before we can take substantial steps toward transformation.”.

 

What’s Next?

Senyu Hu, designing engineer at ELITER Packaging Machinery, commented that the company will take a great effort to launch the ESTRENA Wrap-Around Sleever, with joint support from SIEMENS China, before the September or at least the October of 2022. The machinery will be positioned as a counterpart of Sleevers made by global renown market players from the EU and the U.S.A. “We are taking transformation gradually towards a packaging machinery manufacturer of higher level.”, said Senyu Hu.

 

Contact Us

Zixin Yuan
Digital Marketing Coordinator zixin.yuan@Eliter-Packaging.com



Zhiwei Bao
General Manager zhiwei.bao@Eliter-Packaging.com


ÉLITER Packaging Machinery Co., Ltd
No.1088, Jing Ye Rd, Economic Development Zone, Dong Shan District, Ruian Wenzhou Zhejiang, China 325200
+86 (0577) 6668 2128
info@Eliter-Packaging.com