MK sports East China's Zhejiang Province, on June 25, 2024 Photo: Courtesy of Zhejiang Ansheng Science & Technology Stock Co" src="https://www.globaltimes.cn/Portals/0/attachment/2024/2024-07-11/241f8770-b4c8-4b7e-9d3a-27aa3a5f32f0.png" />

A thermal mugs showroom at Zhejiang Ansheng Science & Technology Stock Co in Yongkang, East China's Zhejiang Province, on June 25, 2024 Photo: Courtesy of Zhejiang Ansheng Science & Technology Stock Co

The rise of thermal mug original equipment manufacturers (OEM) for foreign brands in East China's Zhejiang Province and South China's Guangdong Province has led to the formation of thriving industrial clusters. 

Recently, the Global Times reporters visited Zhejiang, where a majority of Chinese-style stainless steel thermos mugs are produced every day, to unveil these manufacturing companies that are focusing on developing their own name brands and expanding their global presence through cross-border e-commerce platforms.

Manufacturing miracles 

Zhejiang Ansheng Science & Technology Stock Co (Ansheng) is one of the most professional thermal mug manufacturers in China. At a stainless steel pipes workshop, robotic arms are seen performing automated operations, using materials such as 304 stainless steel coils. 

Following grinding and polishing, materials undergo various processes including cleaning, welding, vacuuming, polishing, painting and packaging. According to a manager from Ansheng, each assembly line can produce around 5,000 units of thermal mugs a day.

The city of Yongkang in Zhejiang, where Ansheng is based, has embarked on its journey to become the "capital of China's thermal mugs." 

Today, one out of every three insulated tumblers globally is produced in Yongkang. The city produces and exports over 70 percent of China's thermal cups. More than 2,500 enterprises are engaged in the thermal cup industrial and supply chains in the city. 

Chinese media reports reveal that an overwhelming majority of the thermal cups in the world are manufactured in China. More than 60 percent of stainless steel insulated tumblers are made in China using state-of-the-art manufacturing tech, and the country has become the world's leading producer and exporter of insulated tumblers, churning out approximately 800 million units annually. 

The abundance of raw materials, complete supply chain, and mature manufacturing technology enable Yongkang to continue providing customers with high-quality mugs at an affordable price," Lü Zhengjian, president of Ansheng, told the Global Times, adding that these are important factors attracting international brands to enhance collaboration with local manufacturers.

China has long been recognized as a global manufacturing hub, with many popular vacuum-insulated drinkware brands, such as US-based vacuum bottle companies Yeti and Stanley, and Japanese brands Tiger and Thermos, choosing to produce their goods in China due to the advanced infrastructure and skilled workforce.

Industry representatives said that Chinese manufacturers enjoy advantages in terms of raw material cost, production efficiency and level of engineering, compared with other countries in the world. Also, China has a rapidly growing consumer market.

Growing 'soft power'

With such huge favorable conditions, Chinese entrepreneurs have recognized the importance of branding as a key asset for businesses, as many are focusing on establishing a recognizable brand name both in China and the world so as to gain a competitive edge. 

The Global Times learned from representatives from several Zhejiang-based OEMs for foreign brands that they are investing heavily in research and development (R&D) to develop new products to attract more consumers.

Wang Jiajun, manager of Zhejiang Aodu Daily Necessities Co, told the Global Times that the company, set up in 2017 as an OEM for foreign brands selling through Walmart, Costco, and Disney, plans to be better positioned to build its own brand in the future.

The secret sauce in product development lies in the superiority in manufacturing technology, complete supply chain and low cost, Lü Jieban director and vice president of Zhejiang Xiongtai Houseware Co, a manufacturer of stainless steel vacuum containers, told the Global Times.

"These are significant examples of the 'soft power' that the Chinese thermal cup industry possesses. We are proud to say that the exceptional quality of products manufactured in China outpaces many international brands, demonstrating the need for these domestic products to be recognized and celebrated under our own brand identity," said Lü Jieban.

Another example is Zhejiang Feijian Industry and Trade Co, which has made a significant breakthrough in the creation of pure titanium thermal cups. The breakthrough in material innovation has significantly improved the performance of high-end thermal cups and opened up new opportunities in global market. Xia Feijian, the company chairman, told the Global Times that the innovation marks a major achievement for China's thermal cup industry.

"With experiences gained from OEM business, companies in the thermal cup industry are poised to move toward a more innovative direction, offering new opportunities for China's manufacturing sector," Lü Jieban said.

Lü Jieban highlighted the industry's shift toward independent R&D, with a focus on intellectual property rights and patents. This shift has empowered companies to develop products independently, ultimately enhancing the value of their products.

Gaining global renown

The trend to go global is a step that many Chinese manufacturers cannot turn down.

In the past 30 years, Chinese thermos makers have gained significant market share. Data from Huajing Industry Research Institute showed that in recent years, the Chinese insulated cup industry has experienced a steady increase in exports, with a significant leap in 2022, reaching an export value of 27.8 billion yuan (3.8 billion), an increase of 4.6 billion yuan than a year earlier.

The Chinese-made thermal cups have gained international recognition, becoming a must-have item for many, industry representatives said.

Dawid Kask, a Polish student who has spent three years studying in Beijing, told the Global Times that he uses insulated cups every day. "I keep my cup with me during my daily routine, I think this habit is a reflection of traditional Chinese culture and a trendy accessory for modern youth. I believe that Chinese-made insulated cups prioritize fashion, durability, and quality, rivaling renowned brands like Thermos from Japan."

The cups are not only convenient for drinking and cleaning, but they also provide excellent insulation for both hot and cold drinks, Kask said.

As the global consumers' recognition and trust in Chinese insulated cups is growing, many domestic companies are stretching their network to some Southeast Asian countries.

Meanwhile, the rise of e-commerce platforms has opened up new avenues for Chinese brands to directly reach global consumers. 

With the help of e-commerce platforms, Chinese products can be sold directly to consumers worldwide, Lü Zhengjian said. "This direct engagement allows companies to better understand the needs of local consumers, pushing companies to improve production efficiency and manufacturing skills."

International brands such as Yeti and Stanley, which choose to manufacture tumblers in China, are good examples to denounce the "decoupling" attempt by some Western countries. 

"The integration of foreign brands with Chinese supply chains is a result of their seamless connectivity with the country's suppliers and manufacturers, which allows them to meet the demands of their customers while maintaining their commitment to quality," Cong Yi, a professor at the Tianjin School of Administration, told the Global Times.

For instance, Stanley tumblers are made in China. This allows for an efficient and cost-effective manufacturing process, ensuring that Stanley can provide high-quality products at competitive prices.