The central Chinese province of Henan has over 100 million people. Many traditional industries had once thrived there. But the changing times have also forced many companies out of business.
Matches used to be a daily necessity for many Chinese families until they were replaced by lighters. Some producers have managed to stay in the game, however.
Zhao Changxin, who started his first job at the Anyang match factory in 1981 until it was shut down in 2000, now is the head of a gift match company.
“I've always felt deeply attached to that job,” said the director of Fangzhou Matches Factory.
The Anyang match factory was one of the biggest in the sector in the '80s. At its prime, it had over 3,000 employees. But the tides turned when the demand for matches dropped. After that, there was a gradual rise in labor costs.
VCG Photo
“In the past 40 years, China has greatly benefited from its large population. That is mainly reflected in its cheap labor,” said Xu Hongcai, deputy chief economist of the China Center for International Economic Exchanges.
“However, the dividend is shrinking as the country moves closer to an aging society,” he added.
Henan's large population has been a great benefit for the province's economic development. But experts say this momentum will only continue for about another ten years.
“Henan needs to transform its population into a large pool of talents with an emphasis on education. So this group of people can make more innovated products with higher quality to meet demand,” Xu said.
Take Zhao's product, for example, it is no longer a simple box of matches, but a creative and personalized gift. Every day the factory ships out over 800 thousand boxes to countries around the world.
“Our employees are not simply making matches. They also design original elements on the boxes. We are also cultivating talents to do independent research and development in match production, including finding ingredients that meet international standards,” said Zhao.
Xu believes this province of over 100 million people will spur new impetus into the international market. Through industrial transformation and upgrading, and innovation in products and services, this densely populated province will be more competitive, in the new round of global economic development.