Industrial cluster of daily-use chemical products, tourist goods and culture & sports products

With the business establishment and accumulation in 1980s and economic transition in 1990s, a group of villages and towns in Yangzhou has formed a competitive industrial chain and industrial cluster with the production of daily-use chemical products, tourist goods and culture & sports products as characteristic.

1. Analysis on the existing circumstance of Yangzhou daily-use chemical products, tourist goods and culture & sports products industry

There are many characteristic products with industrial clustering effect in our daily-use chemical products, tourist goods and culture & sports products industry. There are tourist goods such as tooth brush, anti-mosquito incense, toy and camp in Hanjiang District, toy and fishing gear in Guangling and Weiyang District, case, bag, shoe and toy in Yizheng and Gaoyou city, sports products in Jiangdu, and glasswork, crystal and educational toy in Baoying County . In 2003, Yangzhou achieved the Gross Industrial Output Value at Current Prices of RMB 7.5 billion.

1) The toothbrush cluster in Hangji town, Hanjiang District

Situated in the center of Yangzhou, with more than 170 years history of toothbrush manufacturing, Hangji town has began the industrialized production in toothbrush and related industry since the 1980s. The core manufacturer is Sanxiao Group established by Han Guoping in the late of 1980s. Later, the enterprises such as Wuai, Mingxing, Jinsong and New Dasheng gradually enlarge their production scale and a lot of small enterprises appear. With a group of toothbrush production and complementary enterprises, there are over 1600 toothbrush manufacturers, lots of related service, raw materials and equipments suppliers and over 4000 full time brokers. The unique economic phenomena have been formed in the area of 36 square. With high specialized level and various forms of specialized production, Hangji toothbrush industry has established a unique and market orientated industrial cluster with toothbrush manufacturers at the core. In April, 2003, Hangji was awarded the title of the Toothbrush City of China by China Daily-Use Commodity Industry Federation and China Daily Groceries Association

Ⅰ . Toothbrush. With over 20,000 employees, annual production capacity of 3.242 billion, 1123 kinds of varieties and total production value of RMB 2.865 billion, there are 1602 toothbrush manufacturers and related enterprises in 2003. The domestic market share of the products is up to 80% and the products are also exported to foreign counties.

Ⅱ . Tourist goods used by hotels. There are about 3500 households engaged in the production of tourist goods in the town with annual production value of RMB 0.6 billion accounting. The output accounts for 40% of the domestic market share and most domestic hotels under Four-Star level adopt their products.

Ⅲ . Printing. There are over 200 printing manufacturers mainly providing service for the parking of toothbrush and hotel tourist products.

Ⅳ . Daily-use chemical products such as anti-mosquito incense. The anti-mosquito incense, Sleep Well, is the new product of Sanxiao Group in 2002. The Output value in 2003 was over RMB 0.2 billion and it was expected to reach RMB 0.5 billion in 2004. Besides, the production of the articles such as Talang shoeshine, Xiaoshuang sanitary towel and Jiahe air freshener is also with a certain scale.

2) Toy cluster in Weiyang District

Toy industry is our traditional industry. In 1963, our plush toy stirred the Canton Fair. In the 1980s, our new nap toy with emulational leather as the raw materials made the Yangzhou toy fashionable in the international market. There are nearly 100 toy manufacturers and related enterprises with a certain scale with annual output value of RMB 3.5 billion and over 40,000 employees. The main products are nap toy, battery-operated toy, toy lining and supplementary materials. In 2003, it achieved the sales value of RMB 3 billion and self-management export value of RMB 0.15 billion. It was awarded the title as the Hometown of Plush Toy.

In recent years, Weiyang District actively adjusts the structure of its products, and establishes a complete industrial chain of raw materials, half-manufactured goods and finished products with an integration of production, supply and sales, relying mainly on nap toy, electrical toy complemented. Jiangyang Industrial Park attracts a few toy manufacturers with investment cost of over RMB 10 million. The Wutinglong international toy building, built by Wenzhou merchant with investment cost of RMB 0.3 billion, provides a platform for toy research and trade and the toy cluster has been preliminarily established. In Weiyang District, there are 23 toy manufacturers with a certain scale with over 10,000 employees, among which there are 3 enterprises with sales value of over RMB 0.1 billion and 7 enterprises with sales value of RMB 0.01-0.1 billion.

3) Glass and crystal cluster in Baoying county

The glass and crystal industry in Baoying began in the 1950s, and the numbers of production enterprises gradually increased in the 1990s. Through years of development, there has been formed a clustering situation with Amerihua Company and Longan Company as the leading enterprises and traders prevailing in the county. There has also been formed a kind of operating structure, in which factory leads many production sites and pit traders vitalize the production. There are 200 existing glass and crystal manufacturers (15 scale manufacturers) and 610 processing sites with 12,000 employees and total assets of RMB 180 million. In 2003, its production and sales value is up to RMB 790 million with exports value of RMB 340 million and self-management export value of RMB 160 million.

There are 16 villages and towns engaged in glass and crystal industry with Xiaoguanzhuang as the representative. The main products include four categories: glassware (instrument), artwork, trombone and crystal handicrafts. Glassworks include glass craft gifts for Christmas, winding articles, glass ware, all classes of stained glass, cloisonné inner painting, illumination artworks, etc. Crystal handicrafts include ball type, utility devices, plane type, facet type and external carving type artworks. Glass and crystal handicrafts are mainly sold abroad and in great demand in the domestic large and medium sized cities and over 60 countries and regions such as Europe , America , Middle East , Hongkong , Macao and Taiwan .

4) Cases, bags and shoes cluster in Gaoyou

Cases, bags and shoes are the traditional products of Gaoyou. In recent years, the industry has made great development. The main products include tour handicraft shoes, snow jogging shoes, flexible shoes, leather goods and leather cases. The products are sold well in domestic large and medium sized cities and the counties in Southeast Asia , Europe and America . The output value at present prices in 2003 was RMB 1 billion.

With annual production capacity of 6 million pairs (Linze town 3 million pairs each year), Gaoyou has concentrated its products on four series (safety shoes, travel shoes, all rubber shoes and sand shoes) and over 100 varieties, and it is also the No. 1 in our shoe industry.

With over 20 manufacturers and output value at present prices of RMB 0.5 billion in 2003, Gaoyou Tianshan town is an important production base in East China and enjoys its reputation as the Hometown of Cases, Bags and Shoes.

5) Culture & sports cluster in Jiangdu Wujian and Baoying Caodian

The sports equipment cluster has been preliminarily established in Jiangdu Wujian. China Wujian Sports Equipment City attracts more than 30 enterprises engaged in the production of sports equipments with 8 series and over 150 varieties. Its annual sales value in 2003 was RMB 0.3 billion.

In Baoying Caodian, there are over 150 enterprises (over 60 scale enterprises) engaged in the production of culture & sports products and educational toys with annual sales value of over RMB 0.4 billion and more than 5000 employees. Caodian, known far and wide as the Hometown of Culture & Sports Products and Educational Toy, concentrate its products on 5 series (cultural products, sports equipments, teaching appliances, learning appliances and toys) and over 1000 varieties. With the building area of over 200 mu, the Educational Toy Park built in 1997 has over 50 enterprises at present.

2. Advantages for the development of our daily-use chemical products, tourist goods and culture & sports products industry

With the unique industrial atmosphere impossible to be duplicated and imitated in other region, Hangji toothbrush cluster is in the growth stage of its lifecycle. With Sanxiao Group as the leading enterprise and nearly 100 enterprises engaged in the production of toothbrush, toothpaste, sanitary accessories, shoeshine, anti-mosquito incense and card board, Hangji industrial park is distributing center of daily-use chemical products, tourist goods and culture & sports products. With the continuously increasing innovation abilities, the park has owned a brand cluster such as Sanxiao, Wuai, Chenjie, New Sense and Koule with over 420 registered trade marks and 350 patents. Hangji is recognized as the Captital of China Toothbrush Industry. The clustering effect of toothbrush industry clearly emerges.

Yangzhou is the hometown of plush toy. With strong processing ability, the toy manufacturers in Weiyang District rely mainly on the production of nap toy for children, electrical toy complemented. They seized the commercial opportunity of the ATHENS 2004 Olympic Games and manufactured 2 million mascots for Greek merchants. Up to now, the Jiangyang industrial park has attracted a few manufacturers with the investment cost of over RMB 10 million and related enterprises. With the building area of 18,000 square meters and total investment cost of RMB 0.3 billion, the undergoing project, Wutinglong International Toy Building with an integration of production, development, sales, exhibition and tour, will greatly promote the influence and competitiveness of its toy industry. Located in Yangzhou , Import & Export Toy Inspection Institute of the National Commodity Inspection and Testing Bureau play an important role in directing the healthy development of the local toy industry.

The glass industry in Baoying has formed an industrial characteristic with the large group of small enterprises and the big market of small items. It has owned a group of enterprises engaged in technical exploitation such as Yangzhou Amerihua Craft Gifts Co., Ltd. and Dongfeng Shengting Handicrafts Co., Ltd. The towns such Xiaoguanzhuang and Sheyang, with glass processing enterprises closely packed have formed characteristic parks known as Three Parks and One Building . With planed building area of 1800 mu, the Glass Artwork Park was built in Xiaoguangzhuang town and the area exploited was 500 mu. Based on the glass technology adventage, Xianfeng established Crystal Technology Park and the area exploited was 500 mu. It will further enlarge the scale of the industry.

Based on the industrial characteristic of Tianshan and Linze towns, Gaoyou strengthened the construction of the Cases, Bags and Shoes Park . With the buildup of China Wujian Sports Equipment City in Jiangdu Wujian and Educational Toy Park in Baoying Caodian, the clustering effect of culture & sports Industry is increasingly emerging.

3. Developing objective and key points of our daily-use chemical products, tourist goods and culture & sports products industry

In the future, our daily-use chemical products, tourist goods and culture & sports products industry will concentrate on developing the products of characteristic technology such as toothbrush, toothpaste, jewelry, cases, bags, tents, toy, glass and crystal handicrafts with the aim to achieve the output value of RMB 20 billion in 2010.

1) Daily-use chemical products and tourist goods. Take the enterprises such Sanxiao and Wanmei as the leading manufactures; rely mainly on Hangjiang Industrial Park and Hangji Industrial Park; concentrate on developing the products such as toothbrush, toothpaste, jewelry, cases, bags and tents; make great effort to build Hangji as a production, sales, information and research center of the toothbrush industry in the world; push the development of industrial chain forward. It is expected that the output value of toothbrush industry in Hangji will be up to RMB 8 billion in 2010.

2) Toy. Take the Wutinglong Toy Accessories Building as the leading force; rely mainly on Jiangyang Industrial Park and Hanjian Industrial Park; consolidate the development of traditional plush toy industry; exploit the production of new type sound, light and electric control toys and intellectual toys; seize the good chance of the Beijing 2008 Olympic Games and expand the domestic and international markets with the aim to build Yangzhou as a production, research and sales center of plush toys. It is expected that the gross industrial output value of the city's toy industry will be up to RMB 8 billion in 2010.

3) Glass and crystal handicrafts. Take the Amerihua and Dongfeng Shengting as the leading enterprises; rely mainly on the villages and towns such as Baoying Xiaoguanzhuang, Sheyang and Xianfeng; plan and construct characteristic parks known as Three Parks and One Building; emphasize on the exploitation of Christmas artworks, illumination articles and serialization with the aim to develop serialized, top grade and complementary glass products; develop top grade crystal handicrafts through the application of die casting technology, computer texturing technology and laser technology; build the well-known base for the production of glass and crystal handicrafts. It is expected that the output value of glass and crystal cluster will be up to RMB 3 billion.

4) Cases, bags and shoes. Take Yinghua, Weiyang, Guanghua and Xijie as the leading manufacturers and rely mainly on Gaoyou Tianshan and Linze Industrial Park with the aim to develop the case, bag and shoe industris.

5) Culture & sports products. Emphasize on the construction of Jiangdu Wujian Sports Equipment Building and Baoying Caodian Educational Toy Production Base.

4. Countermeasures for the development of

1) Strengthen the resources integration of industrial cluster and promote the expansion of industrial cluster

The abilities to gain resources outside industrial cluster and the abilities to adjust and utilize the resources inside industrial cluster reflect the competitiveness of the cluster. From the perspective of toothbrush and toy industries, it is required to strengthen the utilization of exterior resources, especially in the period of scale expansion. It is also required to integrate resources, strengthen the integration of assets and funds and give the link function of assets and adjusting function of cluster structure to the full play with the aim to promote the cluster and upgrading of the industry.

2) Perfect the industrial parks and strengthen the invitation of business and capital attraction

In order to promote the industrial upgrading and increase the industrial competitiveness, it is required to take the new type characteristic industry parks established in concerning villages and towns as the important policy tools to solve the problems in the development of the industrial cluster, gradually establish complementary, research and business centers, and make full use of the scale economy and scope economy of the industrial parks with the aim to promote the quick development of enterprises in the industrial cluster. Meanwhile, it is also required to strengthen business invitation, attract enterprises absent in the industrial chain and intensify cooperation with the aim to take less time and reduce cost in process of production, thus achieve the optimal benefit.

3) Strengthen the construction of cluster service system and promote its consecutive and healthy development

It mainly includes the following aspects: Ⅰ . Work out the policies for the development of the industrial cluster. For example, the supportive measures of local government for supporting the clustering development of the industry; Ⅱ . Establish and perfect the concerning trades societies assuming the responsibilities of guidance and coordination for the development of their own products and strengthen Industrial management with the aim to promote ordered competition; Ⅲ . Establish the training system and promote training level; Ⅳ . Perfect credit guaranty and financial service centers and develop credit guaranty organization to provide financial service for the enterprises within the cluster; Ⅴ . Establish instructing system. Invite industry, colleges and research personnel to provide service for the enterprises in the field of management consultant, business consulting and business establishing instruction.

4) Nurture entrepreneur group and attach great importance to the establishment of brands

Entrepreneur group is the important human resources promoting the development of industrial cluster. Its business establishment and other activities concerning technology and system not only determine the growth of enterprises but also influence the development of industrial cluster. However, most enterprises within the industrial cluster pay little attention to the talents, technology and the effect of name brands, so their mechanism of importing talents, managing talents and nurturing talents has not been established. To some extent, we urgently need entrepreneurs. Therefore, we will actively nurture the spirit of entrepreneur, build a kind of new local culture, concentrate on nurturing a group of modern entrepreneurs, attach much importance to create name brands and create name brands of China , even the name brands of the world through years of efforts with the aim to promote the healthy development of industrial cluster.

5) Take advantage of information network technology and develop business electronic commerce.

Yangzhou , the experimental city of national informatization, has developed its information network technology very quickly. Scientific application of electronic commerce will not only provide new chance for the business operations of large and small enterprises but also play an important role in the development of industrial cluster. Currently, it is required to quicken the construction and perfection of Hangji Toothbrush Network, Yangzhou Toy Network and Chinese Glass Handicrafts Network and push the trades of webs forward with the aim to expand the market.

It should be noticed that the Yangzhou daily-use chemical products, tourist goods and culture & sports products industry is a labor-intensive industry focusing on the production of middle and lower end products with low cost and price, thus it can only have a market as the processing base. Nowadays, as traditional industries continually adopt new technologies and labor-intensive products are becoming rich in their varieties, it is required to promote product level through the technical innovation, concentrate on nurturing local name brands and take the road to develop the economy with special features. Thus we can enlarge and strengthen the industry and achieve the goal of leaping development.