Obaili Bag Factory: A Path of Survival and Development Amidst Difficulties
In the context of adjustments in the global economic landscape and increasing uncertainties, Obaili bag factory is experiencing unprecedented survival challenges. The continuous escalation of U.S. tariff policies and the overall downturn in the international market have put this enterprise, which has deeply rooted itself in the bag manufacturing industry, in a severe predicament. However, Obaili has not stopped in the face of difficulties. Instead, it has taken the initiative to explore ways to break through the bottleneck and anchor its development direction in the storm.
Corporate Foundation: From Professional Manufacturing to Global Layout
Founded in 2004, Obaili bag factory has grown into one of the benchmark enterprises in the bag manufacturing industry in Xiamen after nearly 20 years of intensive cultivation. The factory specializes in the research, development and production of various bag products, covering cooler bags, drawstring bags, non-woven bags, shopping bags, handbags, travel bags, backpacks, briefcases, tool bags and other categories, which are widely used in tourism, sports, camping and outdoor leisure scenarios, and has accumulated profound technical precipitation and a good reputation in the industry.
At present, the factory has a workshop of nearly 20,000 square meters and more than 200 professional and technical workers. Its products are sold to many regions such as the Americas, Europe and Africa with reliable quality, forming a sales network covering major global markets.
Crisis Strikes: Survival Pressure Under Tariff Barriers
The intensive adjustment of U.S. tariff policies has become a heavy burden on Obaili. In February 2025, the United States canceled the tariff exemption for small packages under $800; in April of the same year, it imposed an additional 34% tariff on Chinese goods exported to the United States, causing the comprehensive tariff on luggage products to soar from 54% in 2024 to 104%-145%. The sharp increase in tariff costs has directly squeezed the profit margin of the enterprise. Taking a backpack with an export price of $5 as an example, its tariff cost has surged from $2.7 to $5.2 - $7.25. After adding logistics costs, the terminal price has increased by 100%-150%, which directly led to an order loss rate of more than 30% in the U.S. market, putting the enterprise in a severe survival challenge.
Measures to Break Through: Exploring Ways to Survive from Multiple Dimensions
In the face of difficulties, Obaili has taken the initiative to explore breakthrough paths from multiple dimensions:
Overseas Factory Establishment: Avoiding Barriers to Reduce Costs and Increase Efficiency
To cope with the impact of U.S. tariffs, the factory took the lead in launching overseas layout and set up a production base in Cambodia. This move can not only take advantage of the relatively low labor and raw material costs in the local area, but also effectively avoid the high tariffs imposed by the United States on Chinese products. As the person in charge of the enterprise said: "Setting up a factory in Cambodia is a key step to deal with tariffs. Although there are challenges such as cultural differences and increased management difficulties, in the long run, it will help us reduce costs and maintain the competitiveness of our products."
Material Integration: Controlling the Source to Stabilize the Supply Chain
Obaili simultaneously established a material integration company, which achieves precise control over the quality and price of raw materials by integrating high-quality supplier resources. The factory director said: "The core task of the material integration company is to select high-quality suppliers and establish long-term and stable cooperative relationships. This can not only ensure product quality, but also reduce procurement costs to a certain extent, laying a solid foundation for the production link."
Production Optimization: Technological Upgrading to Improve Efficiency
In the production process, the factory has reduced its dependence on manual labor and improved production efficiency and product quality stability through process research and the introduction of automated equipment (such as automatic cutting machines, template machines, etc.). At the same time, through the optimization of standardized processes, the production cost has been further reduced. In addition, the factory has strengthened employee training and regularly carried out courses on operational skills and quality management, so as to drive the improvement of product quality and production efficiency with the improvement of employees' quality.
Market Expansion: Deeply Cultivating Emerging Markets to Tap Potential
In view of the downturn in the international market, Obaili has turned its attention to emerging markets in Asia, Africa and other regions, and strived to enhance the popularity and share of its products in these emerging markets by participating in international exhibitions and using online platforms. The enterprise firmly believes: "Although the international market is generally cold, emerging markets still contain huge potential. Seizing these opportunities can open up new development space."
Adherence to Quality: Consolidating the Lifeline to Win Trust
In terms of product quality, the factory has always strictly followed the ISO-9001 quality management system, and implemented strict control over every link from raw material procurement to production, inspection and packaging. "Product quality is the lifeline of an enterprise. No matter how the market environment changes, the quality standards must not be relaxed. Only by adhering to high quality can we win the trust of customers and the recognition of the market," said River, the factory owner, which reflects the enterprise's persistence in quality.
Outlook for the Future: Writing a Survival Story in the Face of Challenges
Despite numerous difficulties, Obaili's series of measures have achieved initial results - production costs have been effectively reduced and product quality has been continuously improved. At present, the market situation is still severe, and the enterprise still needs to forge ahead, but the team is full of confidence: "Through continuous efforts and innovation, we will surely gain a firm foothold in the predicament and achieve better development."
In the tide of global economic integration, Obaili's experience is a microcosm of many manufacturing enterprises. In the face of uncertainties, the enterprise has actively responded with strong vitality and innovative spirit. The survival path it has explored through measures such as tariff avoidance, market expansion and production optimization has also provided valuable reference experience for other enterprises facing similar difficulties. On the road ahead, Obaili is writing its own breakthrough story with tenacity and wisdom.