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Improved R&D, quality resolve increasing outlay
Posted : May 02, 2008

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Women's flip flop
  Rubber is the key material used by mainland China's Jinjiang Huakai, including for this printed model. It is available in sizes 36 to 41.
Companies are investing in capability and efficiency upgrades, and using nontoxic materials amid an upsurge in operating expenses.

Mainland China and Hong Kong suppliers of women’s flip-flops are implementing various strategies to bolster competitiveness in the midst of steadily rising costs.

Raw materials expenditure, including that for rubber and EVA foam, increased by 15 percent in the past year. Suppliers are also challenged by the labor shortage and the yuan’s appreciation. As such, they are being pushed to modify prices upward by 5 to 10 percent in the next 12 months.

As part of strategies to reduce expenses, makers are now sourcing rubber from countries in Southeast Asia such as the Philippines, Vietnam and Thailand. The material procured in these areas is less costly than that from Brazil, a traditional provider.

Moreover, companies are augmenting R&D investment, creating a wider design selection in an effort to attract orders. They are also purchasing advanced equipment to improve productivity.

Suppliers are implementing stricter QC procedures as well. Apart from in-house tests, flip-flops are checked at independent laboratories on request. For most makers, this additional expenditure is passed on to the buyers.

In addition, suppliers use imported dyes that do not contain azo and lead.

Among the mainland makers interviewed, China Fuzhou Zhongchengxin Shoes Co. Ltd adopts rubber from the Philippines, Thailand and Vietnam. Raw materials and output are tested at SGS on request, but buyers must shoulder that cost.

Exporting to the US and the EU, the ISO 9001:2000-certified company will be investing in additional injection-molding machines in coming months. It uses azo- and lead-free dyes.

Apart from flip-flops, China Fuzhou Zhongchengxin produces PE foam slippers and shoes in injected EVA.

High Spirit Ltd sources Japan- and Germany-made nontoxic dyes from a trading company in Fujian province. It is investing 5 percent of annual revenue in product development.

Flip-flops from Jinjiang Huakai Shoes and Garments Co. Ltd are inspected at SGS. Popular models include those with embossed insoles and a massage function. These are produced from Japan-made rubber procured in Fujian.

Opinion Enterprises Co. Ltd’s models are free from lead and azo. The supplier’s factory is equipped with silk-screening and heat-transfer printing machines.

At Hong Kong’s Trade Buddies International Co. Ltd, flip-flops make up 10 percent of shipments. The US, Germany, Russia and Australia are the main markets.

The trading company also offers ceramic mugs, plush toys and promotional items.

Yue Mao (HK) Ltd’s 50,000sqm factory has screen-printing and embossing machines. Of the 2,000 workers, 50 are QC inspectors. Production follows ISO 9001:2000.

Output is SGS-tested and exported to the US, the UK, Poland and Kuwait.

Note: All price quotes in this report are in US dollars unless otherwise specified. FOB prices were provided by the companies interviewed only as reference prices at the time of interview and may have changed.
Disclaimer: All product images are provided by the companies interviewed and are for reference purposes only. Those product images featuring products with trademarks, brand names or logos are not intended for sale. We, our affiliates, and our affiliates' respective directors, officers, employees, representatives, agents or contractors, do not accept and will not have any responsibility or liability for product images (or any part thereof) which infringe on any intellectual property or other rights of a third party.
 
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