Only one wire stripper, made for 30 years, with an annual output value of over 30 million yuan, occupying 80% of the German market share... Changzhou Newtop Tool Co., Ltd., despite its small size, has maximized a niche product and a niche market. It has spent decades researching and refining this "pliers" and has become a true industry "single champion." Seeking change before "the times abandon you" Reporter: Can you briefly introduce the history of your company? Dong Hao: The predecessor of Newtop was Wujin Xinyue Hardware Tools Factory, located in Lu Cheng Street, established in 1986, and my father-in-law was the captain. In 2008, I started working at the factory, starting from a technical worker, and gradually learned the operation and management of the factory. At that time, the factory's annual output value was about two or three million yuan, mainly producing plate pliers, which were the most common manual wire strippers on the market at that time. A wire stripper is a commonly used tool for electricians to remove the surface insulation layer of the wire head. The wire stripper can separate the insulation skin of the wire that is cut from the wire, and can also prevent electric shock. In the early years, when there was a power failure or a short circuit at home, electricians were called to repair, and many people have seen electricians remove the wire skin by burning or biting, then twist the two wires into a strand, and finally wrap it with tape to prevent leakage. Nowadays, this "rural method" is rarely used, and most people use a combination of wire strippers and terminal blocks for standard. Reporter: How was the company's operating situation at that time? Dong Hao: The products lacked competitiveness, and it would be difficult to develop further without finding a breakthrough. On the one hand, due to the limitations of the product itself, looking at the present day, the annual demand nationwide is only about 20 million, and the market price is about 4 billion yuan. On the other hand, compared with other brands on the market, our products did not have functional innovations, nor were they "superior" in terms of quality. What gave me hope and prospects was a fully automatic wire stripper that was different from the plate pliers. Theoretically, it could integrate functions such as stripping, pressing, and cutting wires into one, and its stripping range was wider and safer. Although the quality of our products at that time did not meet our expectations and market requirements, I believed that this was the future direction of the wire stripper and had development space. In 2011, we re-registered and established Changzhou Newtop Tool Co., Ltd., focusing on this fully automatic wire stripper. "Newtop" means new expansion, hoping to start a new round of entrepreneurship with new products and new positioning. Reform, one "pliers" to explore the world Reporter: What is the difference between your so-called fully automatic wire stripper and the traditional plate pliers? Dong Hao: The so-called fully automatic is relatively speaking. When using a plate plier to strip wires, the operator needs to have a certain level of professional knowledge. First of all, they need to identify the thickness and specifications of the wire, and then put it in the corresponding hole; secondly, the angle of the wire and the blade needs to be correct. If there is a deviation, plus the wrong technique when stripping, it will not only be difficult to cut the appropriate length, but may also damage the inner metal wire. The fully automatic wire stripper eliminates these drawbacks. As long as the wire is put into the blade, it can easily peel off the outer skin of the wire with a light squeeze. Anyone can easily complete the operation. The greater advantage is that the most popular wire stripper in our company can be suitable for all specifications of wires with a cross-sectional area of 0.2 square millimeters to 6 square millimeters. The most commonly used wires in home decoration are 1.5, 2.5, and 4 square millimeters, so in the home market, it has truly achieved a "pliers to peel all wires." Reporter: How did you improve it?

Innovation, towards every household around the world

Reporter: Is your market mainly overseas?

Dong Hao: Yes, our company has passed the BSCI factory inspection in Europe, the Walmart factory inspection in the United States, and the GS certification in Europe. Ninety-five percent of our products are sold overseas, with Europe as the main market. Among them, the German market has the highest market share, with a single product accounting for 80%. This is due to our cooperation with the German LIDL supermarket. LIDL has tens of thousands of stores in Europe, and in 2019, our company's shipments to them were 500,000 sets of fully automatic wire stripper sets, including accessories. In 2020, the order was 460,000 sets. As of now, our company has received orders for 650,000 pliers this year, and production is very busy. We are constantly innovating in technology, and one patent is currently under application for invention. In existing technologies, the fully automatic wire stripper includes a clamping section and a cutting section. When peeling off the wire skin, the clamping section clamps the wire skin, the cutting section cuts off the wire skin and removes the peeled-off part, and there will be clamping marks on the wire that has not been peeled off. After implementing the new technology, there will be no more pressure marks on the wire skin that has not been peeled off, it will not be damaged, the cut will be more beautiful, and it will eliminate any potential safety hazards.

Reporter: What are your plans for the company's next step in development?

Dong Hao: On the one hand, only by having innovative and core can we have the right to speak and pricing power. At present, our company has a total of 10 domestic patents, 2 German patents, and 1 French patent. Implementing an innovation-driven strategy is an inevitable choice. On the other hand, we need to strive to break away from the old and outdated business model and gradually introduce modern management concepts and practices in terms of management thinking, management system, and management organization. In addition, the fully automatic wire stripper has become our flagship product, and we hope to explore and develop new products based on this to broaden the company's development path. Our goal is to make Newtop tools enter every household around the world.

Reporter's comments:

Facing the legacy left by the older generation, Dong Hao has mixed feelings. The predicament of traditional enterprises is fundamentally about facing the new era. It's not the opponent who wants to "eliminate" you, but the era that wants to eliminate the backward. No one wants to fall, but how many companies can be reborn? Dong Hao has achieved this. He has spent 10 years successfully making the "old tree" bear "new branches" and bloom "new flowers." In essence, it is because of his "new" vision and "old" focus. As he said, a lifetime is just enough to do one thing well.