ZWZ's Price Increase Policy

Jan 25 2005, One month ago, ZWZ Group, the leading bearing enterprise of China, begun to increase its fist products' prices, which caused a tremendous shock in Chinese bearing industry. The Wafangdian Bearing Co.,Ltd(ZWZB)a leading subsidiary of ZWZ Group, became the first company to implement new price policy. Almost 90 percent of ZWZB's products price increased and average up ratio hit 10%. But in such a market that price has become the only competitive point, why did ZWZ Group increase their products' price? Mr.Wang lushun the president of ZWZ Group said that as the flagship of Chinese bearing industry, they have experienced a steady period of developing; their products brand and expertise, company reputation have been appreciated by the customers; the price increasing will not lose their former customers but attract new customers who dealt with high-end products. In short, the increasingly strong strength of ZWZ should be the direct reason for its price increasing policy. So far, among hundreds of large bearing enterprises in China, sales of ZWZ accounted for 13 percent of all these enterprises. Products of ZWZ have been applied to 27 different industries and ranked first in 10 of the people's most interested markets. In addition, the fist products' market share were even more high. For example, market share of ZWZ's lorry bearing are 40%; both automobile bearing and motor bearing for machine tools are over 30%; mining bearing are 25%. ZWZ has built its own railway bearing manufacturing base and became the first manufacturer to product speed-up railway carriage bearings, heavy lorry bearings and high speed motor bearing. ZWZ also is the major bearing supplier for China's 3 large automobile group. In the area of mining, ZWZ built a manufacturing base for extra-large bearing and floating bearing's production.