Jiayuan Plastics Technology’s Multi-Dimensional Strategy to Tackle the US-China Trade Shifts
Global Trade Shifts: High Tariffs Impact Plastic Household Industry
Since the reintroduction of high tariffs by the Trump administration in 2025, the tariff rates on plastic household products imported from China to the US have generally increased to 22%-28%, with key categories like shower curtains and mattress protectors facing additional tariffs. Amid this backdrop, strategies of US retail giants have diverged significantly. Walmart has insisted that Chinese suppliers bear the full brunt of the tariff costs, leading to supply chain disruptions. Companies like Costco and Home Depot have instead partnered with suppliers to develop cost-reduction solutions. Meanwhile, brands like Ross and Bed Bath & Beyond have struggled with poor financial performance due to their inability to absorb the cost hikes.
As a leading manufacturer of plastic household products, with over 60% of its market share in the US, Jiayuan Plastics Technology Co., Ltd. (hereinafter "Jiayuan") has specialized in shower curtains, tablecloths, and mattress protectors for over 20 years. With advantages in polymer material R&D and a vertically integrated supply chain, Jiayuan was quick to adopt a “Global Manufacturing + Local Service” dual-engine strategy in 2024 to respond to industry disruptions.
Strategy I: Cambodia Factory Launch
In September 2024, Jiayuan launched its production facility in Cambodia's Grand Bokor Special Economic Zone, with the initial capacity covering 35% of US market orders. The move addresses three key industry challenges:
Tariff Barrier Breakthrough
Cambodia benefits from the US Generalized System of Preferences (GSP), along with the ASEAN-US trade agreement, effectively counteracting additional tariffs on Chinese goods.
Vertical Supply Chain Integration
With labor costs 40% lower than China’s Pearl River Delta, combined with policy incentives, overall production costs in Cambodia have decreased by 15%-18%. Leveraging local petrochemical raw material clusters, Jiayuan achieves integrated production from PE/PP pellets to finished products, reducing total costs by 12% compared to China.
Customer Demand Anticipation
Some large clients have requested suppliers to establish a "China + Southeast Asia" dual-source production capability to diversify geopolitical risks.
Liu Fang, General Manager of Jiayuan Technology, commented: “Our Cambodia facility not only features advanced production equipment but also adheres to stringent quality control systems, significantly improving production efficiency while ensuring our products meet the high standards required in the US and Europe."
Strategy II: Innovating B2B Models, Creating Win-Win Partnerships
In response to short-term retail strategies of shifting tariff costs, Jiayuan has promoted a “Cost Transparency and Shared Burden Mechanism” to avoid being passive in the face of pressure, and to foster deeper collaboration with customers:
Data-Driven Pricing
Jiayuan has opened up cost modules related to raw materials, logistics, and tariffs to customers, establishing a dynamic pricing model.
Joint Cost Reduction R&D
Collaborating with major retailers like Target and Amazon Top Sellers, Jiayuan has developed lightweight packaging and modular design products to reduce per-unit logistics costs.
Long-Term Agreements
Jiayuan offers preferential allocation of Cambodia-based production capacity and price protection clauses to clients with contracts longer than 3 years.
This model has effectively avoided the “forced price cuts leading to supply chain breakdown” scenario seen with Walmart, strengthening Jiayuan’s relationships with clients and fostering a mutually beneficial partnership.
Strategy III: A Global Perspective on Risk Hedging
Although Jiayuan’s Southeast Asian strategy is showing initial success, the company remains cautious about “single-source” risks and is aware of the following challenges:
Labor Market Limits
Cambodia’s total labor force is only 10 million, with the textile industry at 68% saturation, which means expansion into countries like Indonesia and Mexico will be necessary in the future.
Supply Chain Shortcomings
The local Southeast Asian home textile industry has a low localization rate of under 30%, and domestic dyeing and weaving technology still holds a competitive edge.
Policy Fluctuations
With the Trump administration proposing additional tariffs on third-country transshipment goods, Jiayuan has proactively prepared certified production capacity in other regions to mitigate potential risks.
Supply Chain Director, emphasized: “True globalization isn’t just about shifting production locations; it’s about enhancing our resource allocation capabilities.” Jiayuan has now established a "China R&D + Southeast Asia Production + Global Supply Chain" network, ensuring more efficient responses to demand from North America and other markets, optimizing delivery times, and increasing customer satisfaction.
Strategy IV: Expanding into the European Market and Advancing Globalization
To reduce its dependence on the US market and further diversify risks, Jiayuan Technology is intensifying its investment and expansion into the European market, particularly targeting the custom hotel and home goods sectors. Specific strategies include:
Market Penetration
Focusing on the custom needs of small European hotels and guesthouses, providing local retailers with small-volume, diverse, and customized products.
High-End Customization
Utilizing Jiayuan's strengths in eco-friendly materials, antibacterial, and anti-mold technologies, Jiayuan has launched high-end shower curtains and mattress protectors designed specifically for the European market, catering to the EU’s high standards for sustainability and functionality.
Future Outlook: Advancing Technology Innovation & Market Expansion
In response to potential trade policy changes, Jiayuan's 2025 strategy will focus on three key areas:
Deepening Technological Innovation
Jiayuan will increase investment in new materials and functional coating technologies, launching innovative products such as stain-resistant and antibacterial shower curtains and mattress protectors to meet the market’s demand for high-performance home products.
Regional Market Diversification
Jiayuan will continue expanding in the European market, particularly for small hotel and guesthouse customization, while increasing its share in the RCEP region, gradually reducing reliance on the US market.
Sustainable Development
Jiayuan will strengthen its environmental measures at the Cambodia facility, promoting the recycling and reuse of production waste to optimize resource efficiency, thus supporting customers’ sustainability goals.
About Jiayuan Plastics Technology Co., Ltd.
Jiayuan Plastics Technology is a leading provider of plastic household product solutions, specializing in the research and manufacture of Shower Curtains, Mattress Protectors, Tablecloths, and functional plastic materials. The company is ISO 9001 and BSCI certified and has 21 years of production experience. With an 82,700-square-meter production facility and a history of working with top retailers like Walmart and Target, Jiayuan ensures high quality, reliable partnerships, and fast replenishment services for customers around the world.
👩💼 Sarah
💼 Market Research and Operations Staff
🏢 Shandong Jiayuan Plastics Technology Co., Ltd.
📞 +86 19563016857
📧 salesvip@jnjiahe.com
