Shenzhen Kunbei | 65Shenzhen Kunbei walks path to digital transformation Through investments in digital printing equipment and an ERP system, Shenzhen Kunbei is walking a steady path toward digitization and improved production efciency. Yolanda Wang reportsdivision of Hong Kong-based United Label-Trade, Shenzhen Kunbei frst marched into the label industry in 1979, mainly as a producer of price labels and tags for A supermarket goods. At the same time, it also acted as an agent for the accompanying hand-held printers.With the rapid development of the company, the Hong Kong workshops soon ran out of capacity to meet the growing demand for labels. The company turned its attention to the Chinese mainland when selecting a new production location. The large population base in mainland China implies a huge demand for labels, and at this time the label printing industry was still in its infancy, with only a small number of label converters. This led United Label-Trade to register and establish a wholly-owned subsidiary in Guangdong Province, to be called Shenzhen Kunbei. All its production equipment was moved to Shenzhen, leaving only the sales teams and warehousing services for fnished products in Hong Kong.Yolanda Wang of L&L, Raymond Kwong and Chen Dongji of Kunbei‘Before barcode technology arrived, all products on supermarket shelves were labeled with price tags,’ says Chen Dongji, vice-general manager of Shenzhen Kunbei. ‘There was a “Fortunately, we were aware of these tremendous demand for price labels and our company grew very fast at that time.’ seismic market shifts at an early Chen Dongji joined the company in 1999, originally as a workshop apprentice, and was promoted step by step to his stage, and we started to research a current position. At the peak, there were eight units of Ko-Pack and Taiyo full rotary letterpress machines in the factory, all move away from supermarket labels running at full capacity.to in-mold labels”Following the introduction and rapid adoption of bar code technology, the price label market rapidly shrank. Although Kunbei shifted to the production of barcode labels, its proft Automation upgrademargins were squeezed due to the emergence of many low-cost As the label industry enters the ‘new normal’ of post-pandemic competitors. ‘Fortunately, we were aware of these seismic market development, a variety of diffculties such as slower growth, cost shifts at an early stage, and we started to research a move away increases and proft reduction have emerged. Kunbei has been from supermarket labels - to in-mold labels,’ recalls Chen Dongji. forced to innovate to stand out in a fercely competitive feld.In-mold labels have totally different technical requirements Jimmy Kwong, the founder of both United Label-Trade and to self-adhesive labels since they need to take into account Shenzhen Kunbei, delegated this arduous and important task to his how labels are handled throughout the application process. son, Raymond Kuang, who had worked in banks and then packaging ‘No blistering or shrinkage or any abnormal phenomena are and printing companies after graduating in Canada.allowed during the later blow mold or injection process,’ says ‘I had no experience in the label printing industry before joining Chen Dongji. ‘We collaborated with Yupo on research and Kunbei, and my only knowledge about the printing industry development at that time and experienced together a constant was obtained at a previous sales role in a packaging and printing series of tests, failures, improvements and then re-tests before company,’ Raymond Kwong tells L&L. It took him nearly two years the in-mold labels were fnally approved and accepted by to fnally take over the company, starting from his familiar sales customers.’ role and gradually entering the management team.Thanks to this timely transformation, Kunbei withstood the He learned a lot during that period. ‘At frst, I thought label impact of the introduction of barcode technology. After a short products were very simple. However, after gradually understanding and diffcult transition period, in-mold labels became the major and learning, I realized that there were a wide variety of source of business growth at Kunbei, and the company became complicated processes and technologies involved in such a small the largest in-mold label converter in South China. label product, either in raw materials, printing technologies or Shenzhen Kunbei learned from this experience that a fnishing processes. It was the frst time that I had direct experience diversifed business model was most likely to succeed. Today, of the hard road taken by my father and his company.’ the company produces self-adhesive labels, in-mold labels and Then how to make the change? There is an old saying, ‘A shrink-sleeve labels, which are widely used in felds such as workman must sharpen his tools if he is to do his work well.’ edible oils, food and beverages, household chemicals, mineral Raymond Kwong resolved to start by upgrading and retroftting the water, electronic products and lubricants. company’s equipment.Oct - Dec 2023