Overview of The Article :
- History of Koodee Founder LiuXingquan And Koode Company
- Entrepreneurs" Grasp New Business Opportunities
- The Key of Keep Good Quality Behind Koodee
- From Foundry To Brand Exploration
History of Koodee Founder LiuXingquan And Koode Company
In 2013, Koodee founder Liu Xinquan built a factory in Danzao, Nanhai, Foshan, the "China Daily Hardware Capital", to produce thermos cups. In 9 years, with its advantages in quality and design, Koodee has become a supplier of many internationally renowned brands and supermarkets. For a long time, Koodee has always insisted on only doing OEM, not its own brand, and strengthening the position of OEM by improving the level of production and manufacturing. Every day, nearly 30,000 stainless steel vacuum flasks go out of the Koodee workshop and are branded with the brand logo before buying them to consumers all over the world.
Visitors In Koodee Workplace Exhibition
However, as we all know, OEM and brand marketing are at the low and high points of the smile curve respectively, and their added value is far from each other. Even Foxconn, which has the title of "Global Foundry King", has to try to transform and manufacture free-brand equipment in the face of huge growth gaps.
For Koodee, based on the continued growth of the global vacuum flask market, OEM manufacturing is still promising. But in the face of the complex and changeable international trade and the upgrading domestic consumer market, Liu Xinquan also began to think about whether he can make a name in the market through his own brand.
Entrepreneurs" Grasp New Business Opportunities
The founding of Koodee is not Liu Xinquan's first entrepreneurial venture. In fact, he can be called an "entrepreneurship expert." Liu Xinquan, the founder of Koodee, was engaged in the jewelry industry in his early years. He imported rough stones from Botswana, Africa, cut them in Panyu, Guangzhou, and sold them to jewelers. Later, as the sale of rough stones in Africa gradually entered a period of monopoly by the giants, the living space of small sellers became smaller and smaller, and Liu Xinquan was forced to switch. Subsequently, Liu Xinquan entered the stainless steel ice cube manufacturing industry. Stainless steel ice cubes can lower the temperature of the wine without releasing water and thus do not affect the taste of the wine, so it is very popular with bars and wine lovers.
Its stainless steel ice cube factory once reached the scale of several hundred people, occupying most of the global market share. When the business was booming, Liu Xinquan, the founder of Koodee, smelled new business opportunities. Around 2012, Liu Xinquan learned from a friend that Canada had begun "banning plastics." Toronto, Canada passed an ordinance in June 2012 to prohibit all supermarkets and retail stores from using plastic bags. Later, the trend of "plastic ban" swept Europe and the United States, and even the world.
Statistics show that the total annual global plastic consumption is 400 million tons. Plastics are extremely difficult to degrade, especially PE (polyethylene) material degradation takes hundreds of years to degrade, but due to its mechanical properties, it is widely used.
"Plastic ban" action means that the use of plastic products will be greatly reduced, so stainless steel products will be replaced. He aimed at a new industry, namely the vacuum flask made of stainless steel. Whether it is foreigners who like to drink ice or Chinese who like to drink hot water, heat preservation is an attractive selling point. In 2013, Liu Xinquan founded Koodee in Nanhai Danzao, which is mainly engaged in the production and sales of stainless steel vacuum flasks. Danzao is a well-known capital of daily-use hardware, with a wide variety of daily-use hardware products, well-developed transportation, and a cluster of skilled workers. Leveraging on the advantages of the industrial foundation, Koodee has developed rapidly and has become a medium-sized enterprise with a production base of tens of thousands of square meters and more than 300 employees in 9 years. Koodee specializes in the foundry of stainless steel vacuum flasks and targets internationally renowned brands. Whether it is OEM or brand, quality is the foundation. Liu Xinquan said. Before the outbreak of the new crown pneumonia epidemic, Koodee's overseas sales accounted for more than 90%, and its customers covered many internationally renowned brands.
The Key of Keep Good Quality Behind Koodee
There are several buzzing vacuum machines in the Koodee production workshop. In the vacuum machine, the air in the interlayer of the thermos cup is fully burned to form a vacuum insulation layer before it has the ability to keep warm. The degree of combustion of the interlayer air of the thermos cup, that is, the degree of vacuum, determines the length of heat preservation.
"Actually, the vacuum flask looks very simple, but it involves 30 processes. Each process has more than a dozen robots to assist in the assembly line." For foundry companies, making high-tech products is also beneficial Construct a moat to form an advantage that is not easy to replace. In order to improve production technology and product quality, Koodee has made great efforts to introduce high-tech talents and advanced machinery and equipment. At present, most of the processes in the Coudi factory have realized manipulator production, and the painting process has realized fully automatic dust-free painting. Koodee has independently applied for more than 100 patents.
In the entire production workshop, the testing laboratory is what Liu Xinquan thinks is most worthy of his pride. It is equipped with a lot of expensive advanced testing equipment. Among them, the chemical separator can chemically decompose the material of the vacuum flask to detect whether it is non-toxic and harmless; the BPA machine can detect whether it contains bisphenol A substances that affect the development and endocrine of children; the thermometer is used to detect whether the cup's insulation function meets the standard.
In addition, in order to ensure that the vacuum flask can be used in extremely hot and cold areas, the testing room is also equipped with a high and low temperature tester. In the high and low temperature test, the vacuum flask should be placed in an environment of 300 degrees for 12 hours, and then immediately frozen in an environment of minus 40 degrees Celsius for 12 hours to test whether the function is still normal in the high temperature and low temperature environment. In addition, it has to undergo a round of boiling test, boil it in 99-degree wastewater for 24 hours to test whether the paint is peeling off.
Only product batches that have passed strict inspections can be delivered. This is the principle that Liu Xinquan has always adhered to, and it is also the weight of Koodee to win customers. In recent years, with the advancement of technology, Koodee has added a raw material traceability link. The thermos made from Koodee has a one-year traceability period, which can be traced back to the source of raw materials, as well as the specific date of production of the thermos and the specific plant and other information. The pre-work of quality control is more important. Especially in the control of key raw materials, the price gap between stainless steel rolled materials is very large. Some factories will use mixed rolled materials to reduce costs. The average consumer cannot see the difference. When the time is long, there will be rust. possible. "Even if the price of raw materials is soaring, I would rather stop taking orders than shoddy." Liu Xinquan said.
In order to ensure the overall quality, Liu Xinquan also insists on producing the cup body and accessories by itself. In the Koodee production base, in addition to the workshop for the production of stainless steel cups, there is also a workshop that specializes in the production of silicone accessories. Foundry companies especially need stable customers to maintain their operations, and quality is the decisive factor to ensure customer stability. "Liu Xinquan said.
From Foundry To Brand Exploration
After cultivating the production of vacuum stainless steel water bottles for nearly 10 years, Liu Xinquan is still very optimistic about the market prospects of vacuum flasks. From the statistical data, the thermos cup market is indeed showing a continuous rise. The thermos cup is changing from daily necessities to a fashion product. A beautiful outdoor thermos mug has become a fashionable accessory for young people.
"In European and American countries, there is now a trend that thermos mugs need to be matched with different clothes." This means that one person can buy several mugs to meet the matching needs. At the same time, the mugs change from daily necessities to fashion products, which will also bring added value. The rise. For Koodee, continuing to strengthen its foundry production capacity is an inevitable choice in the short term. Following the trend that the vacuum flask has become a fashion product, we can now give customers 50 design ideas at one time for customers to choose from.
However, in the long run, Liu Xinquan is quite entangled in whether to stick to only OEM or develop his own brand. On the one hand, making its own brand may affect the relationship with OEM customers; on the other hand, the profit margin of OEM is constantly shrinking, and the pressure on enterprises to survive is increasing.
In the past two years, affected by the epidemic, the international trade environment has shown a complex and volatile situation. The US market, the original dominant market of Koodee, has seen a sharp decline in orders. Although the increase in orders in the European market made up for the gap, this trade turmoil also made Liu Xinquan realize that it is important to open up new sales channels.
"We are mainly engaged in foreign trade and are more familiar with overseas markets, so our own brand started on Amazon." On the Amazon platform, the sales of Koodee's own brand of thermos once rose to Amazon's sales ranking of thermos cups. The sixth place on the list and most of the top ten rankings are well-known brands. It is also quite optimistic about the domestic market. The domestic market is large, and even if only a small proportion of the population can consume high-end products, there is still a large market in total; on the other hand, the current domestic market consumption power is showing an overall upward trend, and the space for good products is increasing.
"More importantly, in the field of vacuum flasks, there are no domestically-produced brands that are particularly well-known, and there is great potential for self-owned brands." Liu Xinquan said. He revealed that he is currently discussing with several large domestic vacuum flask companies to formulate industry standards to promote the healthy development of the domestic vacuum flask industry.
Koodee Metal Co., Ltd.
We are always providing our customers with reliable products and considerate services.
If you would like to keep touch with us directly, please go to contact us