Little Straw, There Will Be A Big Industry

- Nov 30, 2019-

The principle of a straw is very simple. When people inhale, the pressure inside the tube will decrease. To balance the air pressure, the atmospheric pressure will force the liquid in the tube to rise. When the inhalation is stopped, the liquid in the tube drops and the pressure returns to equilibrium. Production is not high-tech, and technology has not changed much. As for the profit of the straw, it is even more meager. Although some uniquely shaped straws are sold at a high price, most of the straws we see every day are directly placed on the beverage or the straws provided in the restaurant. They go straight and have original shapes, which are the cheapest ones. In English, straw and straw are the same word, straw, unobtrusive, disposable when used up, and extremely thin profits.

Some domestic straw manufacturers have calculated an account. The average sales price of each straw is 8 cents, the cost of raw materials is 50%, the cost of labor is 15% to 20%, and the cost of equipment depreciation and logistics is more than 20%. The profit is only about 10%. That is to say, we can only make 8 cents for one straw, which is 0.0008 yuan ", in other words, we can earn 1 yuan for selling 1,250 straws.

But don't underestimate this industry. Globally, consuming so many straws a year, naturally there are companies that can make it bigger. At that time, there was a saying that "the world's straws out of Yiwu". Yiwu, famous for its small commodities, had many straw manufacturers, and its products were sold all over the world. But over the years, there were only two or three straw makers in Yiwu, including twin children who accounted for 20% of the world's straw production.

In the view of Lou Zhongping, the helm of Shuangtong, he is committed to the straw industry, which is to imitate those western family businesses that have only produced one product for hundreds of years and strive to be perfect. Earlier, the ISO International Standardization Organization in Geneva, Switzerland officially released the ISO international standard of the "Polypropylene Drinking Straw Specification" to 162 member countries around the world. This standard was developed under the leadership of Shuangtong. This company has become a veritable international industry game Rule maker.

According to news reports, Shuangtong now has two-thirds of the patents of the global plastic straw industry, making small straws an invisible champion with an annual output value of more than 100 million yuan.