Wanchen Plastic Products (Shanghai) Co., Ltd. Exits In Sadness

It is learned that cooperative customers include L'Oreal, Estee Lauder LVMH、 Wanchen Plastic Products (Shanghai) Co., Ltd., a beauty brand both at home and abroad, such as Praia, announced that it officially stopped operation on December 1 and went into bankruptcy.

Since its establishment in Hong Kong in 1988, Wanchen Plastic Products (Shanghai) Co., Ltd. has made a breakthrough in the field of cosmetics packaging materials with its excellent product quality and exquisite technology. In 1994, Wanchen set up a factory in Shanghai, further expanding its production scale and market share. For many years, the company has focused on the research, development and production of medium and high grade cosmetics, personal skin care products, and cosmetics plastic packaging, especially in the fields of extrusion hoses, sheet hoses, and thermal fixing materials, such as plastic packaging covers. With its excellent product performance and high-quality services, the company has won the favor and trust of many beauty brands at home and abroad.

However, such an enterprise, which plays an important role in the industry, failed to escape the fate of bankruptcy. According to the analysis of insiders, Wanchen's bankruptcy may involve many factors. On the one hand, with the intensification of competition in the cosmetics industry, consumers' requirements for product packaging are increasing day by day. While facing the pressure of rising raw material costs and labor costs, Wanchen also needs to continue to invest in technology research and development and product innovation to maintain its market competitiveness.

On the other hand, with the rise of e-commerce and the change of consumers' shopping habits, the sales channels of beauty products have also changed. With the rise of online sales platforms, traditional cosmetic packaging suppliers need to pay more attention to product personalization, customization and rapid response. However, Wanchen may have a certain lag in adapting to this change, resulting in its market share in emerging channels being constantly eroded.

In addition, the continuous impact of the global epidemic has also had a big impact on Wanchen's business. The epidemic has led to a slowdown in the global economy, a decline in consumer purchasing power, and a downturn in the beauty industry as a whole. In this context, Wanchen's order volume may decline significantly and the capital chain may be strained.

The bankruptcy of Wanchen Plastic Products (Shanghai) Co., Ltd. is a heavy blow to itself and a profound wake-up call to the entire cosmetics packaging industry. It reminds us that in the fierce market competition, enterprises must always maintain keen market insight and crisis awareness, and constantly innovate and change to adapt to the changing market environment and consumer demand. At the same time, enterprises also need to strengthen cost control and risk management to ensure steady progress in adversity.