The Myth of Nitrile Glove's higher margin.

I was among those who think that nitrile glove always had a higher profit margin, hence it should be the better choice for a glove manufacturer...

only untill recently I realised that how wrong this concept is... 

Just like AirAsia making huge profit every year doesn't guarantee that other airlines could earn money in LCC business.... the fact that Hartalega had been maintaining better profit margin doesn't mean that anybody who venture into nitrile glove production will enjoy the same profitability...

Hartalega got its own advantages, e.g. strong R&D and highly automated factory... these factors bring down its cost, make the products competitive enough hence resulted in higher profit margin.... when other manufacturers like Topglov, Supermax or Kossan jump into nitrile glove production, it could be that they only earn ordinary profit (could even lower than NR gloves) if they don't have the high production efficiency as Harta.

following statement is extracted from Supermx 2013-Q1 reports:

"While we are increasing production output of Nitrile gloves, we have been maintaining our manufacturing margins of Nitrile Glove at between 11% - 13% to be in line with global market prices, especially Nitrile gloves from China & Thailand. This is in line with our objective to be globally competitive."

clearly, Supermx's manufacturing margin for Nitrile gloves is much lower that Hartalega, and seems not much superior (if any) compared to its own NR gloves manufacturing...

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Conclusion --

"higher margin of nitrile glove" is only a myth...

switching to nitrile glove alone doesn't guarantee higher profitability...
there are much more a company have to do for chasing a higher profit margin.

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