Cluster of wicker workshops transformed into stainless steel titan

What began as a modest cluster of roadside workshops in rural Shandong province's Xingfu town has evolved into a powerhouse of private enterprises. Today, Xingfu town is home to 2,800 commercial kitchen equipment manufacturers, a thriving industrial hub built on a foundation of "reverse engineering" that has matured into high-tech innovation.

The town's transformation from a producer of wicker products to a stainless steel titan highlights a broader shift in China's private sector: the move from low-end imitation to brand-driven, specialized growth.

Known for their industrious spirit, people of Xingfu town in Boxing county once traveled to other regions to produce and sell their wicker products. During their journeys, they came across stainless steel kitchen equipment, a discovery that would reshape their hometown's future.

In the 1990s, they returned and began manufacturing similar products locally. At the time, the town had already become a major stainless steel raw material market in northern China.

"Our company started in 1996 as the Boxing kitchen equipment factory, named after the county," said Wang Tongxian, 40, general manager of Shandong Kingbetter Commercial Kitchen Equipment Co.

"Back then, it was what we'd call a first-generation entrepreneurial venture," he said.

In those early years, local businesses learned by imitation. Entrepreneurs brought products back to Xingfu town, reverse-engineering them to start production.

"The profit margins were decent, so it became an attractive business in the village," Wang said.

From 1996 to 2005, the industry was in survival mode. Factories took whatever work came their way, such as household items and kitchen cabinets, without the luxury of specialization.

"We didn't have the freedom to choose. If there was demand, we met it. Survival came first," Wang said.

The turning point came in 2006, when the current chairman of Kingbetter returned from Beijing.

There, he had seen firsthand how kitchen equipment manufacturers from the north were perceived.

"Northern products were seen as low-quality imitations," Wang said. "Our chairman, then in his early twenties, dreamed of changing that."

Determined to elevate the local industry, he spent six months in Guangdong province studying advanced production techniques and product positioning used by southern manufacturers. After returning, he founded Kingbetter as a new brand, brought in technical talent from the south, and built a modern factory.

In 2007, the company made a bold move by acquiring a laser cutting machine, the only one in the industry at the time.

"It dramatically improved our efficiency and precision," Wang said. "We positioned ourselves in the mid-tier market, a major step up from traditional local products."

The strategy paid off. In 2008, Kingbetter's sales exceeded 80 million yuan ($11.72 million).

"Major corporations began choosing our products," said Wang.

In 2010, the company introduced a partnership model, creating divisions focused on specific product lines, like stainless steel equipment, electromagnetic appliances, dishwashers, insulated tables and range hoods. Each division operates under its own investment structure, with 60 percent from the chairman and 40 percent from the team.

"Kingbetter has become a platform for shared entrepreneurship," Wang said.

Wang credits much of the company's success to the local environment. "Xingfu town doesn't exclude outsiders. It values competence. I came here straight from university with no connections, yet I've reached my current position because Kingbetter shares its success and the town embraces talent," he said.

He also acknowledged the role of the local government. "They've fostered a supportive business environment and promoted local industries."

Reflecting on the broader private sector in Xingfu town, Wang said the private economy has thrived here because the people are hardworking, open-minded and eager to learn.

"Many business owners are local, but their vision is global. They may not have formal degrees, but through continuous learning, they've gained deep practical wisdom," said Wang.