PPE

Johnson & Johnson: the “leader” of China’s glove industry

1n 1989, Sha Xiaolin, chairman of Johnson & Johnson Group, brought back two dipped gloves from the German Expo. Later development shows that the significance of these two gloves not only constitutes the starting point of Johnson & Johnson glove Market, but also marks the beginning of Rudong glove industry and the prelude of Johnson & Johnson glove industry development in China

the real meaning of these meanings is neither that Johnson & Johnson, as the earliest “crab eater” in the glove industry, introduced the industrial market and built a platform for operation and competition, nor that Johnson & Johnson, as a pathfinder in the industry, only set a benchmark for the transformation and development of backward enterprises, but as “resource exporter”, The “Huangpu Military Academy” of China’s glove industry has been formed: the production factors related to industrial development, such as technical equipment, talent team, management concept, development mode, sales path, etc., are first bred and mature in Johnson & Johnson enterprises, and then extended and applied to the whole industry. Every step Johnson & Johnson has taken not only makes the enterprise scale and operation strength leap to a new level, And it has brought the whole industry into a new stage of development” With the help of J & J’s experience and model, many enterprises have less detours, and the development models they use follow the path of J & J Sha Xiaolin said

“mode of production” output

drive the glove industry to constantly update

“manual operation, single variety, high price, simple equipment…” in the early 1990s, when Sha Xiaolin just set foot in the glove industry, the industry scene he faced was still the “wasteland” of sporadic layout and extensive production of several Hong Kong, Taiwan and foreign-funded enterprises. At present, the “Huangpu Military Academy” formed by Johnson & Johnson in the industry has started from equipment innovation, which has led a large number of enterprises to form modern production factories in this “barren beach”

from 1996, we developed the first semi-automatic production line with pneumatic and four rows of molds dipping and texturing together and using chain type continuous drying, to 2006, we developed and improved the full-automatic dipping production line in Rudong factory, and now, we use PLC control to add a number of new technologies, such as automatic mold stripping, online screen printing, rapid mold stripping, etc, By adopting the intelligent production line of computer centralized control system of multiple production lines, Johnson & Johnson has successively completed nine times of innovation in equipment and technology of glove industry, and these production modes have been updated round by round, which not only drives other glove enterprises to break through the bottleneck of development, but also makes the production level of glove industry reach today’s level step by step” 1t can be said that every replacement and upgrading of impregnation equipment in China’s glove factories is the first research and manufacturing by Johnson & Johnson, which has driven the upgrading and development of China’s glove impregnation equipment. ” Sha Xiaolin said

at present, there are more than 400 knitting and other glove enterprises registered in Rudong, and there are more than 50 impregnated glove manufacturers. With the supporting products of spinning, weaving and composite gloves, the annual sales volume has reached 4 billion yuan, which has become an important industrial sector in Rudong. Gaomi, Shandong Province, is another glove industry base that has achieved rapid development by “playing cards” with Johnson & Johnson technology, equipment and market. At the beginning of 2000, there were only a few small yarn glove factories and a few film glove processing factories in Shandong Province. 1nfluenced by Johnson & Johnson’s presence in China’s glove industry, they came to visit Johnson & Johnson for study. Some factories simply poached Johnson & Johnson’s management personnel, which made the development of Shandong Gaomi glove industry go straight into the fast lane. At present, the annual sales of Shandong glove plate is close to 4 billion yuan

while horizontally driving the number and scale expansion of glove enterprises, Johnson & Johnson has also injected vitality into the supporting facilities of the upstream and downstream of the glove industry chain” 1n addition to the production of gloves, the glove industry also needs the production enterprises of raw materials, such as spinning, cotton yarn, weaving, composite and other supporting products. The introduction of knitting machines directly drives the development of knitting and machinery manufacturing industry. ” Said Sha Yan, general manager of Johnson & Johnson group

in 2003, Johnson & Johnson invested 35 million yuan to import 310 sets of 13 needle 1sland precision computer glove knitting machine. On this basis, Johnson & Johnson developed a series of products with knitted gloves as lining, impregnated with nitrile rubber, natural latex, PU resin, etc., which upgraded Johnson & Johnson’s products to a great level. Subsequently, a number of glove computer knitting machine manufacturing factories, such as Shaoxing, Zhejiang, came into being. The price of glove computer knitting machine quickly fell to one tenth of the imported machine, forming a large-scale computer knitting machine manufacturing enterprise cluster. 1t has successively produced more than 300000 computer glove knitting machines, becoming an important local industry. At present, Johnson & Johnson knitting factory has 1200 glove computer knitting machines and more than 1000 local cooperative processing machines. According to statistics, the total number of computer glove knitting machines in China has exceeded 250000. The popularity of computer glove knitting machine has played a great role in upgrading domestic labor protection gloves and stabilizing the leading role of Chinese gloves in the international market” The rise of China’s knitted lining gloves is closely related to the large-scale introduction, application and innovation of Johnson & Johnson. ” Sha Xiaolin said

“development concept” output

the “brain” revolution of manufacturing transformation and development

the most direct way of J & J’s development concept output is the outflow of production and management talents. They are familiar with the production process and technical characteristics of Johnson & Johnson, and have accumulated rich production experience on how to innovate the technological process. They also have some experience on how to reform the management mode to achieve profits in the fierce competition, and even have a direct grasp of market customers and channel resources. According to incomplete statistics, more than 200 middle-level and above personnel who used to be in charge of production and management of Johnson & Johnson left the enterprise. Later, 90% of these people continued to work in the glove industry” This can explain why Rudong glove industry has developed from scratch in a short period of time, and now has formed a characteristic industry plate with more than 400 enterprises and an output value of more than 4 billion yuan. ” Sha Xiaolin said

and its influence is not only reflected in these quantifiable aspects. The deeper “brain” innovation created by Johnson & Johnson relying on the output of development concept makes the whole industry go through a round of market storm and grow continuously according to the relatively mature operation mode

in the late 1990s, Johnson & Johnson put forward the concept of low-cost expansion in order to do large-scale expansion as soon as possible. First, it adapted to the production of rubber impregnated gloves and lined gloves. Through purchasing and leasing, it has set up three matching factories for cloth gloves, with more than 800 sewing machines. At the same time, it has set up its own weaving factory, knitting factory and packaging factory; 1n 199, according to the market situation of large demand for leather gloves from customers in the United States and other countries, four leather glove sewing factories and supporting tanneries were set up successively to import wet blue leather directly from abroad for processing” At that time, Johnson & Johnson safety basically formed an industrial chain from raw materials entering the factory to finished products exporting, which effectively reduced costs and realized the rapid expansion of production scale. ” Sha Xiaolin said. However, this low-cost competition established through the industrial chain mode was quickly replicated by other glove enterprises. With the increase of domestic glove factories, many factories not only directly applied Johnson Johnson’s equipment and technology, but also directly imitated the early industrial chain low-cost development mode of Johnson Johnson, making use of Johnson Johnson’s human resources and customer sales resources, 1t forms a fierce homogenization competition with Johnson & Johnson

“in the first ten years, Johnson & Johnson safety gloves basically followed the path of low-end products with price competition as the main means.” Sha Yan told reporters that in the face of constantly weakened competitive advantages, Johnson & Johnson’s later development basically focused on “two changes” to clarify the idea of market development: first, to take special products and profit-making products as the guidance, consolidate old customers, expand new markets, and highlight the development of new products such as environmental protection safety gloves, food grade safety gloves and three types of standardized chemical protective gloves, To achieve “no one 1 have, people have my special”, and peer manufacturers to open the distance from the industry competition; Second, it aims at brand customers, big customers and the top 20 global glove purchasing customers, so as to achieve direct docking with such customers, and then establish Johnson Johnson’s unique sales channels and customer groups

“in terms of sales mode, Johnson & Johnson is the first Chinese glove enterprise to skip foreign trade companies and intermediate traders such as Hong Kong, directly participate in overseas exhibitions and directly seek foreign customers.” Mr. Roman, deputy general manager of Johnson & Johnson Group, said that as early as the early 1990s, Johnson & Johnson had participated in the German a + a safety exhibition, and it had participated in 12 consecutive sessions in 2013. The area of a + a booth also expanded from 9 square meters in the beginning to 200 square meters in 2013″ Entering the new century, China’s glove factories have increased greatly, especially with the rapid progress of glove factories in neighboring countries. The homogenization competition in glove Market has become increasingly fierce. The self export advantage established by Johnson & Johnson in its early days has also been applied by most enterprises. “

“business model” output

upgrading and changing lanes to form a differentiated competitive advantage

the continuous output of production modes and development concepts, such as equipment and facilities, process technology, etc., makes Johnson & Johnson always face such challenges in the 20-year development process: the products and production processes that the enterprise has spent a lot of manpower and financial resources to develop, Soon they were imitated by other glove enterprises. With some innovation, they have a good market; And Johnson’s use of mature management mode and marketing concept has also been used by the outflow of J & J personnel, in turn with J & J to seize market share

“the external view is that the emergence of a large number of homogeneous competition has gradually weakened the competitive advantage established by Johnson & Johnson through technological innovation.” Sha Xiaolin believes that from the perspective of market competition, this is the manifestation of market law and normal competition order. How can Johnson & Johnson continue to form new competitive advantages under the situation of “chasing after”? On the contrary, it has become the internal driving force for enterprises to make continuous breakthroughs in all aspects of production and sales” When someone else drives a car with similar performance and uses the same racing skills to race with you, if you want to keep ahead, you have to either improve the performance of the car, or simply change to a faster vehicle and try to run in a faster lane. “

the first way for Johnson & Johnson to “upgrade and change lanes” is to develop new products and expand the big market through “borrowing stairs to go upstairs”” We cooperate with four or five of the world’s top 500 enterprises to develop new products. With the help of their technical strength and brand influence, we can create Johnson’s competitive advantage and core technology that will not be copied. ” Sha Yan said. 1n 2013 alone, more than ten new products were produced with core technology, including multi-functional special fiber gloves, environmental protection gloves conforming to EU standards, special gloves for food grade use, advanced chemical protection gloves for heavy chemical field, alpine gloves, etc

PU gloves are the pillar products of Johnson & Johnson ordinary gloves. Because the use of DMF toxic solvent has a certain impact on the environment and employee protection, as European and American countries set a high threshold for environmental protection products, the market sales of this product is facing difficulties” 1t is an urgent problem for Johnson & Johnson to find an upgraded product that is not only environmentally friendly and non-toxic, but also has the appearance and feel, especially the price, which is basically similar to the current PU gloves. ” Sha Yan said that in the end, the enterprise successfully solved this problem by using the method of “borrowing stairs to go upstairs”. Johnson & Johnson in 2011

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