YKK China Business to Improve Domestic Demand With Shorter Delivery Time

YKK Corporation’s business on Mainland China is showing slower growths in both sales and profits this year.

In mainstay processing export sales, business has expanded with European and American trading firms handling auxiliary materials in collaboration with European and American group companies. Although domestic sales are higher than the previous year, the growth is slighter. In 2017, the company will endeavor to improve domestic demand by promoting shorter delivery time.

In catering to domestic demand, local brands are suffering from stagnant market conditions, and are aggressively promoting ODM operations. Because the garment factories have been given the authority to procure auxiliary materials, cost competitiveness, shorter delivery time and product variety are in greater demand.

According to a YKK official based in China, the implementation of ODM operations among local brands has resulted in smaller order lots and shorter delivery time. In addition, the payment conditions of some garment factories have become severe, which is making transactions difficult to continue.

Local competitors are promoting market development by taking advantage of their price competitiveness and speed. Under such circumstances, YKK will endeavor to strengthen its cost competitiveness and offer shorter delivery time and a wider product variety next year.

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