Increased competition in the low-end is pushing large suppliers to move to more upscale manufacture. China zippers are known for their low prices, which start at US$0.03 for a #5 20cm nylon model. But suppliers are now finding it more difficult to compete on the basis of price alone. Many makers are thus going upmarket to carve a niche and distinguish themselves from conventional low-end bulk manufacture.

In general, suppliers are moving upscale within their product lines and not shifting to zippers made of other materials. Makers that produce nylon zippers are producing more midrange and high-end versions in nylon itself, and not changing their product line completely to, say, metal zippers, which are considered higher-end than nylon.

Suppliers shifting to upscale products are usually large private companies, local or foreign-owned, with direct export capability. Most of these companies have been in the business for 10 years or more.

All 15 companies we visited for this report have stopped or significantly decreased production of low-end models. Sixty-seven percent of these suppliers have been operating for 10 years or more, and 27 percent have been making zippers for more than 20 years. The rest of the companies have been in the business for at least five years.

Suppliers that are moving upmarket are intensifying R&D work and purchasing advanced equipment to enhance their capability in designing value-added zippers. The latest designs from China have tapes printed with colorful patterns or woven in multiple colors. Pull tabs are being made from a variety of materials and are customized to suit buyers' requests, including the etching of logos onto the surface. Even zipper teeth are being dyed or electroplated in gradated colors. Some new releases are also water-resistant and fire-retardant.

Upscale zippers not only have better design and function, but improved quality as well. Suppliers that are moving upmarket are using imported and branded materials to enhance quality. These include Delrin, Tepcon and Bayer plastics, which are priced significantly higher than locally made materials, and are more durable.

Steady exports, domestic sales up
Export sales of zippers and zipper parts from January to October 2004 were US$207.7 million, up 23 percent from the same period of the previous year.

Finished and semi-finished zippers make up 79 percent of total shipments. Exports in the first 10 months of 2004 amounted to 3 billion meters worth US$167.3 million, up 18 percent in terms of volume and 25 percent in terms of value over shipments made in the same period in 2003. Zipper parts make up 21 percent of total. Exports for the first 10 months of 2004, with 16 million kilograms worth US$40.4 million, were up 6 percent in terms of volume and 15 percent in terms of value over shipments made in the same period in 2003.

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