Yizumi Pushes into the European Injection Molding Machine Market

n 2014, Yizumi achieved 20.26% year-on-year overseas sales growth. In 2015, Yizumi’s overseas sales still maintained good momentum of development. At the same time, Yizumi managed to develop the Israeli market into its largest export destination whose growth rate is over 30% despite global economic downturn; Also, Yizumi entered the European markets, such as France and Spain, which have high threshold.

A sales boom in Israel, the largest market

South Korea, Israel, Turkey and Indonesia are relatively important injection molding machine export market for Yizumi. Compared with the domestic market, the overseas market changed unpredictably.  

In 2014, Turkey was Yizumi’s largest injection molding machine export market. But due to the parliamentary election and the increasing impact of terrorist organizations on Syria and the surrounding areas, Turkey’s economy was in worst state in decade. Last year, Yizumi’s orders from Turkey also declined.

The Middle East also went through political and economic instability, yet its manufacturing demands were strong, with even more potential than the traditional markets such as Europe, Southeast Asia and South America. Israel was the fastest growing market, which grew more than 30% and successfully replaced the Turkish market, becoming Yizumi’s largest export destination. Yizumi also became the No.1 Chinese brand of injection molding machine in the Israeli market.

Compared with other competitors in the Israeli market, Yizumi is a “latecomer" as it got access to the local market in 2009. But Yizumi’s sales volume in Israel had been the same with that of a well-known Chinese brand a few years ago.

Yizumi’s rapid growth in Israel benefits from the local agent’s exceptional customer service, customer retention and maintaining customer loyalty.  

Yizumi Deputy Managing Director James Zhang said, “I’m very impressed by the Israeli agent. He will become very anxious as long as a machine has a problem. This shows that he really attaches great importance to customer needs."

"Spare parts are usually delivered by shipping. But if they are urgently needed, the Israeli agent will request air transport of spare parts even if he needs to share the freight. I think this kind of customer service concept is great. It is inevitable that a machine has problems, but the key thing is to solve problems for customers as soon as possible.”

For Yizumi, that is the key to maintain customer relationships in the Israeli market. “In overseas markets, the most important thing is to retain customers." explained James Zhang. Yizumi has never lost any customers in Israel. Some big customers stay loyal to Yizumi not only in Israel, but also in other countries. They still choose Yizumi’s machines when setting up factories in France and the United States.

Entering the European market to fill the gap

The existing markets continue to thrive and new markets also heat up with new development. In the past, acceptance of Chinese machines in the Western European markets was relatively low, and Yizumi’s products could only be sold to Eastern Europe. However, Yizumi’s sales in Western Europe began to increase significantly in 2015.

"There are many reasons for Western Europe to accept plastics machines from China,” explained James Zhang, “The overall technological level and quality level of Chinese plastic machinery are enhanced and their influence in the global market is also increasing. Now at large international trade shows, promotion of Chinese machines is even stronger than that of Japanese machines. So more and more European customers know and recognize Chinese brands.”

In addition, benefiting from China’s complete industry chain and overall competitiveness, Chinese machines are quite cost-effective. Also, machines wholly produced in Europe are much more expensive than Chinese machines. So Yizumi’s machines are becoming more competitive in the European markets.

Moreover, continued economic downturn in Europe affects local machine manufacturers. Some have to downsize and some even shut down. The Italian market is particularly hard-hit.

"Italy is Europe's second largest market for plastics machinery manufacturing, but some small and medium sized manufacturers have halted production in recent years, resulting in a lack of supply. Compared with the expensive European and Japanese machines whose price is 20-30% higher than Chinese counterparts, Chinese machines are the best choice to fill the supply gap and meet the market demand.”

Precisely because Yizumi grasped those favorable market trends, it succeeded in signing new agents in France and Spain last year and made continued progress in developing and expanding markets.

Introducing new product line to promote market growth

Last year, the complexity of global economic development, the strengthening of the dollar and the waning willingness of overseas investment led some to feel worried. But Yizumi was still confident in the future development of overseas market. The Company not only maintained a good momentum of development in 2015, but also believed there would be continued double-digit growth in the next three years.

"Our confidence comes from our increasingly better technology and quality of products. The management of the company and overseas sales and services are also enhancing, which ensure more stable product quality and service.” said James Zhang.  

From the beginning of 2015, Yizumi launched a two-platen injection molding machine, a new product, in the overseas markets and achieved notable encouraging results. Customers from France, Turkey and Lebanon now have placed orders for that new machine.

James Zhang said, "Some of our customers buy two-platen injection molding machines to replace their European machines; some buy new machines to expand their production lines equipped with three-platen injection machines. As our new product line is introduced to the market, the sales will be further increased."