Companies in the GBA | The "King of Chinese knife", hidden in a small town in the GBA

南方财经全媒体记者杨雨莱 广州报道

A knife that is unable to “practice” many times is hardly a good knife. A good knife not only smashes garlic but also promotes the economy in a region.

When referring to good knives, German Zwilling and Japanese Shun are often the first models that come to mind. However, China also has good knives – such as Yangjiang Shibazi, “China’s First Knife.” 

Why is Shibazi so confident in its product? It begins with the blade’s origin. Yangjiang, the city of knives and scissors, has a history of making knives for over 1000 years.  It is the first industrial cluster that reached an annual output of over 50 billion yuan in Yangjiang, accounting for about 70% of the country and 85% of national export volume, selling in 160 countries and regions, and leading companies play an important role in this feat.

Shibazi, founded in 1983, is one of these exporters. Unlike Zhang Xiaoquan, which made its name in the capital markets, Shibazi’s incumbunt GM Li Jihui believes the craft industry benefits from family inheritance. “We would rather borrow than invest, let alone go public.” This is the rule set by founder Li Lianghui.

Li Lianghui, first generation leader, is the inheritor of “Yangjiang Knife” intangible cultural heritage. He who focused on craftmanship led Shibazi to carry out five technological revolutions. From improving forging skills to launching multi-functional and set knives, and forming an upstream and downstream integrated production technology chain,Yangjiang Shibazi has laid a solid foundation to enter Chinese kitchens.

Li Jihui, the second generation leader, unlike his father didn’t know how to make a knife. Instead, his focus lies on building up the brand. Li Jihui came up with the idea of building a sound system museum, which was a hobby of his, to enhance brand awareness. Though met with many doubters, it soon brought added value to the brand, which blossomed into economic benefits. Shibazi is now a powerful leading private enterprise, with operating revenue reaching 620 million yuan in 2023.

After a brand is established, it is time to grow steadily with the trend of times. Li Jihui’s niece, Li Mengshi, has a keen “sense of internet” like her generation. From Taobao to Pinduoduo, from selling products on short videos and social media platforms, she found new ways to promote the family brand.

Based on unique regional advantages, Shibazi’s leaders also invoke the Cantonese entrepreneurial spirit to lead the way and aim for a larger overseas market. Since 2016, Shibazi has started to go abroad and entered markets in “Belt and Road” countries. In 2021, its overseas turnover reached 150 million yuan, as Chinese knives enter households in Poland, Austria, Czech and other countries.

As a knife factory, Shibazi insists on “making a good knife with good steel” to impress its consumers, and has remained the biggest producer and seller of knives in China for over 30 years. However, it also faces concerns of low technical barriers. Li Jihui once stated, “We will be easily replaced if we don’t improve our technical abilities and form national brands like Japan and Germany.”

Therefore, it is time for “Shibazi” to innovate in this traditional industry. In recent years, Shibazi has welcomed postdoctoral candidates and academicians to guide the production of its knives through theoretical innovation. This year, Shibazi moved to a new factory, eliminated 30% of its old equipment, and is expected to increase its workforce by 50%.

With upgraded equipment, personnel, technology, and concept models, the capacity of the new plant is 50% greater than that of the previous one. The first generation engaged in technology, the second generation created brands, and the third generation pursued innovation. Yangjiang Shibazi, a family business in traditinal manufacturing appears to be old-fashioned in the modern market, but it is thanks to Shibazi, and many private enterprises like it that Guangdong is filled with both heritage and vitality.

出品：南财国际传播中心 21新媒体中心 创意互动中心

策划统筹：于晓娜 丁青云

内容统筹：谭婷

责任编辑：李香香

执行统筹：黄欣然 

设计统筹：林军明

视频统筹：白宇航

监制：施诗

英文翻译&配音：李莹亮

海外运营监制: 黄燕淑

海外运营内容统筹: 张伟韬

运营支持：曾静娇

审校：魏雯静 黄志明