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Liao Paper: A Dark Horse in the Diaper Industry
Source: | Author:Dr.leo | Published time: 2019-01-27 | 11876 Views | Share:
As one of the four major concentration areas of the diaper industry, Fujian, especially Quanzhou, has gathered hundreds of diaper manufacturing enterprises. Since 2015, in the fierce market competition, a group of excellent enterprises with good growth potential have emerged, and Li'ao Paper Industry is one of them: like a dark horse in the diaper industry, it is rushing forward.

In recent years, the diaper industry has been galloping and developing rapidly. In order to maintain or seize market share, various manufacturers have increased their investment, and for a time, the market is in turmoil.


As one of the four major concentration areas of the diaper industry, Fujian, especially Quanzhou, has gathered hundreds of diaper manufacturing enterprises. Since 2015, in the fierce market competition, a group of outstanding enterprises with good growth potential have emerged, and Liao Paper is one of them: like a dark horse in the diaper industry, it is rushing forward.


In the current environment where many companies complain that the diaper business is not doing well and making money is difficult this year, why have these companies that entered the hygiene industry relatively late been able to develop so quickly? During the off-season in traditional markets, it is still necessary to increase production capacity and even outsource production lines to ensure order completion?


With these questions in mind, Secretary General Jiang Manxia of the Household Paper Committee took advantage of her business trip to Xiamen and was invited by Fujian Liao Paper Co., Ltd. to visit Li'ao on August 9th. She had in-depth exchanges with Chairman Ding Qican, Vice General Manager Lin Qingshen, and Director Zhang Baoyu in charge of research and quality control, and also visited the Liao factory.


Seize the opportunity to become stronger and bigger


Fujian Liao Paper Co., Ltd. is located in Quanzhou Taiwan Business Investment Zone, covering an area of over 300 acres. The company was founded in 2009 and initially had 4 production lines: 2 for baby diapers, 1 for adult diapers, and 1 for nursing pads. After 2015, Australia intensively purchased 15 high-end baby diaper production lines, expanding the annual production capacity to 2 billion pieces of diapers.


The company currently owns three major brands of baby diapers and adult incontinence products, namely "Lebei", "Dr. Totoro", and "Beiai Ning", and has external OEM and ODM processing business. Since 2015, sales in Australia have grown at an annual rate of 10%. In 2016, sales exceeded 600 million yuan, and it is expected that this year's sales will exceed 800 million yuan. Ding Dong introduced that according to the strategic plan of Australia, the annual output value in 2018 will reach 1.2 billion yuan.


Unlike other factory environments visited in late June, when entering Liao Paper, what catches the eye is the spacious factory layout, with four white and orange office production workshops shining in the summer sun, presenting a strong modern atmosphere. There is also a 5-story workshop under construction, and after completion, two imported equipment production lines will be installed. The finished product loading area in the middle of the factory is filled with products that are about to be shipped that day. Several heavy-duty trucks are loading, and forklifts are busy shuttling through it, creating a prosperous scene! It makes people forget that this is scorching August, which is the off-season for the diaper industry throughout the year.


During the conversation, it was learned that Chairman Ding Qican had shifted from an external industry to the production and operation of diapers, but relied on his unique vision, keen insight, and decisive decision-making. Since 2015, Liao Paper has seized the opportunities brought by national policy dividends and consumption upgrades, continuously increasing investment and expanding scale. It has taken the lead in introducing advanced domestic technology and equipment such as large waistband diapers, three-dimensional hourglass suspended core diapers, and three piece pull-up pants. Guided by the market and consumers, adopting an "experiential marketing" model, and guided by the principles of product differentiation and refined services, we aim to rapidly expand our market and seize opportunities. Due to its abundant business, Liao has also outsourced three production lines to make up for its own production capacity shortage.


Focus on quality improvement


The competition shortage in the 21st century is talent, and talent is the fundamental guarantee for the development of Australia, "said Chairman Ding Qican. Liao has hired highly qualified professionals with high salaries in various business areas, such as Mr. Tang in charge of sales, Mr. Lin in charge of production, and Mr. Zhang in charge of quality control. They have all served multiple well-known brand enterprises in the industry and have rich work experience, which has promoted the rapid development of the enterprise.


Products speak, quality dominates the world. "Liao has established a professional R&D department and introduced outstanding R&D personnel in the industry, committed to product innovation and improvement. In terms of quality, on-site inspection personnel are equipped to follow each shift in production for quality testing, and strict spot checks are conducted on raw material storage. Physical and microbiological indicators are inspected and tested in accordance with national product standards and hygiene standards. At the same time, the company has also established more stringent standards for testing more indicators to ensure the safety and hygiene of every product in Liao: in the workshop, each production line is equipped with a quality inspector, and adjacent two production lines are equipped with an inspector. The quality inspector is responsible for the appearance and absorption performance testing of the finished product. The production line is also equipped with an image detection system and a metal detector to prevent stains, dirt, and metal impurities from entering the diapers.


Adhering to the enterprise spirit of "focusing on baby health and growing together with you", the company takes the production of healthy and safe baby and adult hygiene products as its own responsibility, has passed the US "FDA" and EU "CE" quality certification, and passed the GMP certification in January 2017, becoming the manufacturer of Metro AG supermarket's own brand products.


Chairman Ding stated that with the continuous improvement and upgrading of production technology, the increasing progress of management, and the gradual improvement of market services, Liao will undoubtedly provide customers and consumers with more comfortable and satisfactory products and services.


The rapid development of multiple channels


Through the marketing model of "experience+service", Li'ao has gained increasing popularity and recognition from consumers across the country with differentiated product demands, innovative packaging, and excellent quality. It has established sales networks in more than 20 provinces and cities including Fujian, Guangdong, Guangxi, Zhejiang, Jiangsu, Anhui, Sichuan, Yunnan, Henan, Hubei, Jiangxi, Hunan, Shandong, and Tianjin. The company's foreign trade department is responsible for the overseas sales of products, with a current export volume of around 50 million yuan. The products are exported to more than 10 countries including Saudi Arabia, the United Arab Emirates, the Philippines, Malaysia, India, Russia, South Africa, Tanzania, etc.


In 2015, the company signed a contract with the famous domestic singing group "Phoenix Legend" as the spokesperson for the "LEBY" brand, introducing a group of professional talents in production, research and development, marketing, and other fields, greatly enhancing brand awareness and network coverage.


The rise and development of e-commerce and micro businesses have narrowed the gap in sales channels between new and old enterprises, small and medium-sized enterprises, and large enterprises, and also provided opportunities for new enterprises to overtake on the curve. Because of a keen awareness of this, Australia has also vigorously developed e-commerce and micro business, and boldly employed a group of young people born in the 1990s to form an e-commerce and micro business team of more than 150 people. And achieved impressive results in the e-commerce and micro business sectors.


As the saying goes, 'When the wind blows through the waves, there will be times when the cloud sails sail across the vast sea.' In 2018, Liao Paper will launch three arrows in the fields of physical, e-commerce, and micro commerce. We have reason to believe that Fujian Li'ao Paper Industry will bring us even greater and more surprises!