The Future Development Road of Jiangxi Poyang Diamond Segment

Coincidence or destiny?

Poyang County is located in the red land in the north-central part of Jiangxi Province, with the famous Poyang Lake in the west, Jingdezhen, the famous porcelain capital in the east, and Anqing, an industrial base in the middle of the north. It is unimaginable that people in the 1980s lived a precarious life in such a unique geographical environment. Poverty is the most immediate problem for the people here.

In such a large environment, a small village called Yangyuan Village in Poyang County flew out “a golden phoenix”: Li Zhihua, a native of Yangyuan Village who graduated from the Central South Institute of Mining and Metallurgy, and a Singaporean businessman jointly established a Hengxing diamond tools factory in Bao'an, Shenzhen. At that time, Shenzhen had just begun to reform and open up. Li Zhihua recruited a group of people from his hometown to engage in the production and manufacture of diamond segments, diamond saw blades, diamond grinding wheels and other stone processing tools.

In the 1990s, China's stone processing industry began to develop rapidly. In the early days, Italian and Korean diamond tools were commonly used, but the products were very expensive. In order to reduce production costs, China's synthetic diamond technology continues to develop. In the 1990s, a group of early domestic synthetic diamond manufacturers such as Zhongbing Hongjian and Yellow River Cyclone stood out, and the appearance of diamond powder directly promoted the rapid development of the diamond tool industry. By the 1990s, employees of the Hengxing Diamond Factory who went to Shenzhen had returned to their hometowns to start businesses. At that time, it was almost the best time to start a business. People who mastered core technology, cheap labor, lack of demand for stone materials, and good foreign trade and domestic market conditions. In such an environment, People in Yangyuan Village helped each other. Under the atmosphere , a large number of diamond tool manufacturers have been established. In that era of material scarcity, it slowly created its own miracles.

It was a rainbow against the backdrop of heaven!



"The miracle of Yangyuan Village cannot be replicated." This is a saying that the local people often say. Indeed, the development that occupied "the right place and the right people" is irreversible. At that time, everyone who participated in returning to their hometown to start a business made a fortune and made money. They began to build enterprises one by one from independent workshops. In the industrial zone of Tianfanjie Town, Poyang County, one by one factory buildings were established. This company has dozens of sintering machine, and that one also has dozens of sintering machine. When it comes to Tianfan Street Town, the people who worked here at that time were confident. Influenced by the diamond segment industry, Tianfan Street Town has a very good momentum of development.

In addition to driving the development of the surrounding towns of Poyang, more people from Yangyuan Village have expanded the diamond segment manufacturers to all parts of the country. In Shuitou, Fujian, Dexing in Jiangxi, Inner Mongolia, Jinzhou in Liaoning, Huludao, Yantai in Shandong, Jinan, Quyang, Yunfu in Guangdong, Macheng in Hubei, Suizhou, in Sichuan, Guizhou, there are people from Yangyuan Village in many places. These people brought the technology of diamond tools to the local area and brought employment and benefit to the local people.

Business is business, the diamond segment of Poyang, Jiangxi have been brought to all parts of the country, and Jiangxi people have also begun to spread to various provinces in China. Of course, in terms of foreign trade, Jiangxi diamond segment has been involved since the last century. At present, almost all countries that produce and mine stone have more or less the shadow of Jiangxi Poyang diamond segment. And such stories are constantly happening and affecting later generations.

The sunset when the wheels of the era rolled over.

Jiangxi diamond segment is cheap!

The life of Jiangxi diamond segment is very short!

Jiangxi diamond segment is not good!

With the continuous development of diamond tool manufacturers in other parts of China, in the 21st century, due to the lack of technological innovation and involution of the diamond segment in Jiangxi, the competition is fierce. Jiangxi diamond segments began to fight price wars one after another, especially in Poyang, where price reduction seems to be the only channel for selling diamond segments. Even after the competition, they lost their pricing power. Slowly, such a situation has emerged in the domestic diamond segment market: after the mine owner has used the segment for a year, he will give a price at the end of the year, and this price has no room for negotiation.



This is a sad story. Jiangxi diamond segments have slowly changed from being considered a cost-effective product to a low-value commodity. And such a commodity has no way to make it shine again.

Gradually, the people in Poyang, Jiangxi, who originated from the diamond segment, were at a loss. Why did this happen? Involution and the market are unavoidable topics. Is it a natural disaster? Or man-made disaster?

Persevere or break through?

The story of the origin and the extinction began to occur continuously. Some manufacturers began to sell their assets, some companies were in a state of semi-shutdown, and some companies were preparing for transformation. But no matter which one you choose, there are reasons for it. In such an environment, the diamond segment manufacturers in Poyang, Jiangxi only have the possibility of “the strongest becomes the king”, which is mainly determined by the following aspects:

1: Innovation ability.

If Poyang diamond segment wants to continue to develop, innovation is the only way to go. From appearance innovation, system innovation to product structure innovation and sales innovation, we must constantly seek an innovative road that is in line with the times, and accelerate the elimination of old products, old products and low-profit products.

2: Change the inherent mode.

The traditional enterprise model can no longer meet the needs of talents. The introduction of project system，partnership system, and dividend system can encourage talents to join and retain talents to retain hope.



3: Speed up the establishment of independent brands.

Brand culture and corporate culture should be established quickly. This process must be accelerated, increased investment, find the positioning of the company through branding, influence talents with corporate culture, and manage employees through corporate systems.

4: Open source and reduce expenditure.

Give up part of the investment in the "Face Project", spend money on the most important investments, and invest with crisis awareness.

Summary: although Jiangxi Poyang diamond segment enterprises are currently under the influence of the general environment, there are still some companies that will grasp the lifeblood of the market, grasp the core of the market, continue to challenge, and finally surpass themselves and achieve growth against the trend. Crisis, there must be "Opportunity" in "Crisis"!