August 1st, 2021Restaurant chefs, home cooks and general people all use knives on a regular basis, and over time, they grow to understand the necessity of a quality knife. They want a knife with an exceptionally sharp blade, quality steel and most importantly, a reasonable, affordable price.
There was a time where meeting all three was an impossible utopia, existing only in the mind. However, there is a region in China that produces quality knives and scissors.
If you are looking to start a new and successful business on line, in person or a combination of both selling quality knives of all varieties at a head turning price for your customer and an above average profit margin, keep reading. Sourcing Nova has the ideal solution for you in every possible way.
Geographical background
China is divided into provinces, and most provinces are hubs and known for a variety of reasons. For example, Yangjiang City, Guangdong Province, China holds the moniker – Industry Cluster.
Yangjiang City is the manufacturing hub and export base for the food and kitchen utensil industry in the country. The city can certainly be considered as the capital of the knife and scissors industry and for good reason. Yangjiang City has a rich and famous history of knife and scissor production dating back over 1,400 years.
Within Yangjiang City, the primary production area is in Dongcheng Town, Yangdong County.
Overview of the industry
China, like most industrialized countries, has government agencies that oversee elements of the country’s production, labor and the like. In China, it is the National Bureau of Statistics. Current findings for the kitchen knife and product industry point to some impressive statistics.
Approximately one million people are employed within the knife and scissors industry. Of these, close to 50,000 people work in the international trade portion of the industry as well.
There are over 1,500 different businesses and manufacturers within the knife and scissors industry. This is more than one-half of all the different businesses in China within this same industry sphere.
We have looked at the data for a number of years, carefully analyzing the potential of the industry based on several qualifying factors. The following is a complete breakdown of what we have learned.
Specific statistics
The time spent researching and learning about the knife and scissors industry resulted in some incredible data that supports why Yangjiang City and Chinese knives are some of the best available across the world. Here is what we found:
- Yangjiang City and its manufacturers produce over 3,500 different types of knives and scissors.
- The total net value exceeds 55 billion RMB.
- Yangjiang City accounts for 70 percent of China’s output of knives and scissors.
- The export volume breakdown:
- 85 percent of the total in China
- 70 percent are OEM
- 25 percent are ODM
- Five percent are OBM
- Export markets shares by percentages:
- North America – 38 percent
- Europe – 33 percent
- East Asia – 18.5 percent
- Japan and S. Korea – 5.5 percent
- Australia – 3 percent
- South America 1.5 percent
This data does not share one important detail that you need – what sort of knives are made and exported? The answer may surprise you.
Primary exports
The majority of knives and scissors exported from Yangjiang City are kitchen, pocket, ceramic and fruit knives. There are also fruit and vegetable planers, scissor machinery, hardware beauty, cosmetic appliances, casters and scaffolding.
The incredible variety of knives, scissors and other products mean you have an excellent opportunity to build a solid customer base. Adding complimentary products to your knife sales mean you can increase profit margins with little extra investment or work.
How can you find more about knives, scissors and other related products in China without having to travel across the entire province? Yangjiang City has a unique advantage of being an industrial cluster for the knife industry.
The advantages of Yangjiang City
The area is prime for the knife and scissor industry because there is a full industrial chain. The chain begins with stainless steel strip smelting, machinery manufacturing, molds, accessories, heat treatment, electroplating, packaging to technology research and development, e-commerce, logistics and distribution.
The entire system exports to over 100 countries and carry significant international influence with Europe and the U.S. as the primary destinations.
The industry is the basis for a strong pillar industry within the province. Related industries generate jobs for residents, which in turn generates a strong and thriving economy with a solid tax base.
Exhibition Fairs
The China (Yangjiang) International Hardware Knives and Scissors Fair is the largest of its sort dealing specifically with this niche industry. The fair is held annually in October and has been since 2012.
The venue location is the Yangjiang-Yangjiang International Convention and Exhibition Center. The facility holds 900 booths, over 500 exhibitors in an area of 37,000 square meters (almost 400,000 square feet).
Port and airports
Sourcing Nova and its head offices are in Shenzhen, the home of Yantian Port. From Yangjiang to Yantian Port is 370 km (230 miles). The close proximity means products can leave the factory and arrive in Yantian Port within a single, work day. Cargo is then exported internationally by ocean freight shipping.
Yangjiang City to Shenzhen Baoan Airport is even closer for products with a higher value and profit margin. The distance of 267 km (166 miles) means products can be sent by air and arrive in destination countries with even greater efficiency.
The wholesale market
The Yangjiang International Hardware Knives and Scissors Trade City is the leader in the wholesale knife and scissors market.
Conveniently located at the intersection of Zhenxing Road and Kangtai Road, Jiangcheng District, Yangjiang City, the area is an impressive 360,000 square meters (3.8 million square feet) and housed in a building of one million square meters (one billion square feet). The more established manufacturers have booths here and are staffed throughout the year for local Chinese and international buyers.
Inspection agency
The National Knives, Scissors and Commodity Metal Tools Quality Supervision and Inspection Center was created in 2008 with the approval of the General Administration of Quality Supervision, Inspection and Quarantine.
The agency is the only one of its kind and has a nationally recognized quality inspection center – Knives, Scissors and Commodity Metal Tools in China – the most authoritative testing organization in China. The facility is located at No. 7 Huanshan East Road, Chaopai Mountain, Yangjiang City. The agency carries certifications from various and relevant national deparments and oversees the establishment of local inspection standards.
Industry Association
The Yangjiang Hardware Knives and Scissors Industry Association is the most well known of the associations and is a key participant in establishing industry standards. Additionally, the association promotes other facets of the overall industry: trends – domestic and international, brands of the more established countries, share supply and demand information and talent recruitment.
Industry standardization
It was in 2012 that the Knives and Scissors of Standardization of Guangdong Province was formed under the direction of the Guangdong Provincial Bureau of Quality and Technical Supervision. Their primary duty is overseeing the technical side of standardization of knives and scissors in the province and provide a strong technical support role.
Members of Bureau
Members of the bureau represent a cross section of the entire industry. They include:
- School of Materials Science and Engineering, South China University of Technology
- Yangjiang Quality Metallurgy Supervision and Testing Institute of Guangdong Province
- Yangjiang Hardware Knifes and Scissors Industry Technology Research Institute
- Yangjiang Hardware Knives and Scissors Industry Association
- Yangjiang Technical College
- A number of production and sales staff from the manufacturers
It is the expressed goal of the Guangdong Knife Scissors Standardization Technical Committee to assist companies in Yangjiang in manufacturing knives and scissors that meet or exceed the production standards of the leading international manufacturers.
Government support
The knife and scissors industry is a pillar industry of Yangjiang City and the surrounding areas, helping drive the economy of the region. The government benefits from a strong tax base, foreign exchange income, low unemployment and above average wages. In return, the government provides special development funds from the annual budget, provides scaffolding for corporate services, established and maintains a product trading platform and an international marketing network for the knives and scissors produced.
Shortcomings
The local government has done well to increase opportunity for online marketing via investments for individual manufacturers. However, a significant number of manufacturers ignore Internet marketing completely out of apathy or lack of understanding of the nuances.
The manufacturers are traditional and cling to business development through exhibitions and fairs. Many of the manufacturers are not active on the Internet. Websites are dated and lack active functionality – a major turn off for customers. The small number of manufacturers who do have an on line presence register with wholesale websites like Alibaba.com. This is unfortunate. The majority of the manufacturers miss the many small and medium businesses interested in Chinese knives and scissors – a loss of a potentially strong, lucrative partnership.
Final thoughts
There is no doubt after 1,400 years of continual production the knife and scissors industry of Yangjiang City thrives under the support of the local government and population.
Sourcing Nova has intimate understanding of the local production enterprises, cooperates well with many manufacturers and has the added advantage of close geographical proximity. If you are considering sourcing high quality knives, scissors and related products from some of the best Chinese manufacturers, Yangjiang City represents the apex of the industry.
Have you decided what specific knives or scissors you want to source? Contact us below. Sourcing Nova will connect you to a personal sourcing agent and begin the procurement process with pricing and samples.
