Like many successful factory directors and managers, Yang Yijun is smart, capable, and honest. Recently, I had the opportunity to interview this 40-year-old factory head during his visit to Beijing with a client. Highly articulate and engaging, he consistently steers any conversation back to his true passions: his products and the market.
Long before this interview, Yang and his groundbreaking equipment had already made a name for themselves. After five years of rigorous development, Yang successfully integrated the best features of domestic and foreign pharmaceutical packaging machinery to invent the “Jianghua” DGB-250 Multi-Functional Roller-Plate Automatic Blister Packing Machine. This innovative device combines both roller and plate mechanisms (earning a national patent for its unique synchronizing mechanism) and features advanced indentation capabilities along with “close-end” automatic intaglio foil printing. Outperforming similar foreign products, it has earned widespread popularity among pharmaceutical enterprises and high praise from industry experts, securing a dominant market position.
Implementing the Joint-Stock System and Driving Growth
A few years ago, Yang introduced a joint-stock system to the factory, propelling the company into the highly competitive commodity economy. Since 1990, demand for their machines has consistently outpaced supply, with purchase contracts currently booked well into next January. The company has achieved an impressive per capita output value of 150,000 RMB, and domestic competitors highly respect its growth potential. However, when tracing the roots of his success, I discovered that his true secret lies in a highly unconventional management and competitive strategy.
Identifying a Market Gap
In the spring of 1985, Yang attended the National Pharmaceutical Machinery Order Fair in Wuhan. He observed that Chinese pharmaceutical enterprises faced a dilemma when selecting packaging machines:
Imported machines were prohibitively expensive, poorly suited to the operational realities of Chinese factories, and difficult to maintain—making them unfeasible for small and medium-sized enterprises.
Domestic machines were scarce. The available roller-type and semi-automatic plate-type models on the market had their merits but lacked essential functions, meaning the technology was not yet mature.
Determined to understand the market’s trajectory, Yang consulted with the State Medicine Administration, the Shanghai Pharmaceutical Design Institute, the Shanghai Chinese Medicine No.1 Factory, and the Shanghai Sine Pharmaceutical Factory. He learned that the State Medicine Administration planned to mandate and standardize aluminum-plastic blister packaging for pharmaceuticals. Recognizing that this industry was on the rise in China, Yang saw a tremendous opportunity.
Five Years of Relentless Innovation
Seizing the moment, Yang pursued his goal with unwavering determination. Over the next five years, he pored over technical data, comprehensively analyzed numerous domestic and foreign machines, and drafted hundreds of blueprints. Finally, in October 1989, after countless experiments, he unveiled the prototype of the DGB-250. Inspired by the imported Italian FA3 plate-type machine, Yang’s design ingeniously integrated elements of roller-type and printing machines.
The prototype garnered immense acclaim at the National Autumn Pharmaceutical Machine Order Fair in Shanghai and was designated a “Key Technological Development Project of Zhejiang Province” the following year.
By 1991, Yang had achieved even greater breakthroughs:
Indentation Function: The new machine could score medicinal boards into smaller sections, offering greater convenience for hospitals and patients.
“Close-End” Intaglio Printing: This equipment not only eliminated chemical pollution during the packaging process but also enabled synchronized printing on the medicine packages. This breakthrough moved the industry past the outdated “scattered pattern” printing mode, surpassing the performance of comparable foreign machines.
These innovations successfully secured national patents. In July of that year, the machine passed the provincial technical evaluation for new products, was named a “Zhejiang Quality Good” in the autumn, and won the Gold Award at the “3rd National New Products and Technologies Trade Fair” hosted by the State Scientific and Technological Commission.
A Bold Strategy: Fostering the Competition
Just as Yang was preparing to execute his grand expansion plans, he encountered a significant hurdle: five key employees announced their intention to leave and start competing pharmaceutical machinery factories. When persuasion failed, Yang had a sudden epiphany. Rather than engaging in internal conflict, it would be better to let them leave and actively foster them as competitors.
“Foster competitors? Is it a joke?” I asked, looking at him in confusion.
Yang offered a profound perspective: “The market cannot be monopolized. Developing a new product does not guarantee an enterprise’s long-term success. We only succeed if we continuously improve and evolve. Competition is inevitable, whether intentional or not. There are at least two distinct advantages to fostering our own competitors: first, it stimulates the broader economy; second, it forces us to relentlessly improve our product quality and after-sales service. I even provided them with our current drawings and technology. But while they build on our original foundation, we are already innovating and perfecting the next generation of products, ensuring they will always be following our lead. Isn’t that a powerful counteracting force?”
Unusual! Brave! Pioneering! This is the bold vision and competitive mindset of a modern entrepreneur.
Looking to the Future
As the interview concluded, Mr. Yang shared his blueprint for the future. The company is currently expanding its production scale and preparing to relocate to a new facility. Furthermore, a next-generation blister packing machine is already in development, inspired by the latest imported models. As Jiangnan Packaging Machinery Factory continues to grow, it promises to provide pharmaceutical enterprises with even better products and superior service.
Author: Tang Jun, Reporter
Source: Excerpted from China Pharmaceutical News, October 25, 1992