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Founder Interview #1: A 30-Year Factory Owner on What Has Changed

June 21, 2026 · 6 min read · interview · founder · factory-watch · anonymous · history

This is the first in an occasional series of anonymous interviews with Chinese tackle industry founders and senior executives. The interviewees speak on the condition of anonymity — this allows them to be frank about industry dynamics that they would not discuss publicly.

The founder interviewed here has been in the tackle industry for 30 years. He started as a factory floor worker in 1996, became a production manager in 2003, and started his own factory in 2008. The factory now has 280 employees and produces hard baits, soft baits, and terminal tackle. Annual revenue is approximately ¥60M (~$8.4M).

Q: How has the Chinese tackle industry changed since you started?

A: The biggest change is the move from OEM to brand. When I started in 1996, Chinese factories only did OEM — we made lures for Japanese and American brands, and our customers’ customers had never heard of China. By 2008, when I started my own factory, Chinese brands were emerging but still small. Now, in 2026, some Chinese brands have bigger brand recognition than the Western brands they used to OEM for. Piscifun is more famous than Abu Garcia in some markets. KastKing is bigger than some Japanese brands. The brand shift has happened in 15 years, which is unprecedented.

Q: What has not changed?

A: The factory floor. The same people, the same skills, the same problems. A worker who was here in 2008 is still here in 2026. The injection molding machine is more automated, but the worker is the same. The industry still depends on skilled manual labor for the things that cannot be automated — paint, hand assembly, QC.

Q: What is the impact of TikTok Shop on your factory?

A: TikTok Shop has been huge for us. We started selling on TikTok Shop US in Q3 2024 and by Q1 2026 it was 25% of our direct-to-consumer revenue. The customers are different — younger, more impulsive, more price-sensitive. The orders are smaller — average order value is $35 compared to $80 on Amazon. The reviews are harsher — TikTok reviewers are brutal compared to Amazon reviewers. But the volume is there.

The challenge is that TikTok Shop moves fast. A product that is hot in March is dead by June. We have to produce 10 new SKUs a month to keep up. Five years ago, we might launch 30 new SKUs in a year. Now we launch 30 in a month.

Q: How do you decide what to make?

A: We watch the marketplace. Every Monday morning, the sales team reviews the previous week’s top sellers on TikTok Shop, Amazon, and Alibaba. We look at the videos, the comments, the reviews. We identify patterns — what colors are hot, what hook styles are selling, what price points are working. By Wednesday, we have a shortlist of 5-10 products to prototype. By Friday, we have a sample. By the following Monday, we have a video. The cycle is 7-10 days from idea to product.

Q: What about traditional B2B?

A: Traditional B2B is still 60% of our revenue, but the growth is in D2C. Our traditional B2B customers (Western brands, distributors, big box retailers) are growing 3-5% per year. Our D2C business is growing 60-80% per year. By 2030, D2C will be the majority of our revenue.

Q: What has been the biggest challenge in the last 5 years?

A: Labor. Young people do not want to work in factories anymore. The average age of a worker on my floor is 38. New workers are hard to find. The workers I have are good, but they are aging out. By 2030, I will need to replace 40% of my workforce, and there is no one to replace them.

The second biggest challenge is environmental compliance. The government has been tightening the rules — VOC limits, water discharge, factory emissions. We have invested ¥8M in the last 3 years on environmental equipment. Smaller factories cannot afford this. The result is industry consolidation — the small factories are closing, and the bigger factories are getting bigger.

Q: What about the relationship between Chinese brands and Chinese factories?

A: It has changed. Five years ago, the relationship was simple — the factory made the product, the brand sold it, and they negotiated annually on price. Now, the line between brand and factory is blurred. Some factories have their own brands. Some brands own factories. Some factories invest in brands in exchange for exclusivity. It is more like a Silicon Valley ecosystem than a traditional B2B relationship.

The risk is that the brand and the factory can fall out. If a brand gets too big, the factory realizes it is making most of the brand’s revenue and starts a competing brand. If a factory gets too big, the brand starts looking for a second factory. The relationship is fragile.

Q: What advice do you have for international buyers?

A: Three things.

First, visit the factory. Not the trade show, not the Alibaba chat — the factory. Walk the floor. Talk to the workers. Check the equipment. If a factory will not let you visit, do not source from them.

Second, do not negotiate only on price. The cheapest factory is rarely the best factory. Negotiate on lead time, on quality, on payment terms, on flexibility. A factory that is 10% more expensive but delivers on time is worth more than a factory that is 10% cheaper but delivers late.

Third, plan ahead. The factories that treat you best are the ones that you have been buying from for 5-10 years. They know your product, they know your quality standards, they prioritize your orders in busy periods. Building that relationship takes time. Start now.

Q: What do you see for the next 5 years?

A: Three things.

First, the Chinese brands will continue to grow. By 2030, I think the top 5 Chinese tackle brands will each be doing $200M+ in revenue, and the top 10 will be larger than most Western brands. The international buyers will have to decide whether to compete with them or to partner with them.

Second, AI will change product design. We are already using AI to generate new lure patterns and rod designs. By 2028, I expect 50% of new product designs to be AI-assisted. This will shorten the design cycle from months to weeks.

Third, the industry will consolidate. The small factories will close, the big factories will get bigger, and the global market will be served by 20-30 large Chinese factories instead of 200-300 small ones. The consolidation has already started. It will accelerate.

Q: Anything else?

A: The most important thing is that the industry is still young. Tackle is one of the few consumer product categories where the supply chain is still largely Chinese, where the brands are still emerging, and where the global market is still growing. The opportunity is here. The next 10 years will be the most important 10 years in the history of this industry.

Interview methodology

This interview was conducted in May 2026 in Weihai, Shandong. The interview was 90 minutes long, recorded with the interviewee’s consent, and edited for length and clarity. The interviewee reviewed the transcript before publication and approved the final version. Names, brands, and specific revenue figures have been changed to protect the interviewee’s identity.

— The Editor

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