Fabric handbags

	Model SEI-0242-B from Shanghai Everest is a knitted acrylic bag with 190t polyester lining.

As part of efforts to maintain viability, suppliers turn to low MOQ, faster shipping, targeted releases and value-added models.

China suppliers of fabric bags are implementing diverse strategies to offset the negative effects of the global financial crunch and help ensure profitability.

In an effort to stimulate orders and give a boost to dwindling sales, many companies have lowered their MOQ. This setup benefits new clients with small purchasing needs.

Among suppliers interviewed for this update, Yiwu Zhongnan Portfolio Co. Ltd has decreased its minimum order requirement for fabric bags to 1,000 pieces. Two years ago, the typical MOQ ranged between 3,000 and 5,000 pieces.

Other manufacturers such as Shenzhen Hongfulang Handbags Co. Ltd, Wenzhou Everstar Import & Export Co. Ltd and Zhongshan Goodbe Handbags Industrial Co. Ltd now accept orders as small as 500 pieces.

Aside from reducing the MOQ, shipping time is being significantly shortened. At some companies, for instance, it has been cut to 20 days from the usual 40.

To stimulate buyer interest further, suppliers are launching models that are directed at specific users or groups.

Targeting mainly young, female consumers, some fabric bags come with bright colors and active designs. Such releases are priced much lower than versions for other types of clients.

Companies are also investing more in product development and introducing models faster. Innovations involve the shape, color, trimmings and surface treatments.

Adding value, releases come with extra compartments for mobile phones, MP3 players, cameras and toiletries. Moreover, some suppliers are pairing fabric bags with cosmetic cases by producing them in coordinated materials.

As part of efforts to stay afl oat, a number of makers are expanding their export reach. Because of the slowdown in key markets, some makers are exploring business opportunities in less-saturated regions such as the Middle East and Asia.

	Yiwu Zhongnan produces model ZP651, a handbag with a canvas body and synthetic leather straps.

Among the materials used in the production of fashion bags, fabric is the most commonly adopted by China suppliers. Aside from being cost-effective, a wide range of design variations is available for fabric. Different textures can be achieved with the material as well.

In terms of fiber, polyester is the most widely adopted type, particularly those with densities between 210 and 1680d. It may be used alone or blended with other materials.

Cotton is also frequently employed. It usually comes in a canvas or twill construction, with the former available in weights of 8, 10 and 12oz.

As for bag components and trimmings, most companies adopt iron, steel, aluminum, alloy, brass or copper. These are electroplated in a silver or golden color, or fine-blasted.

To minimize expenses, makers generally utilize locally sourced materials and accessories. Components from Taiwan, Japan or South Korea are used mainly on highend models, on request or when there is insufficient local supply.

Moreover, under efforts to expand the design range and develop price fl exibility, makers are releasing models that combine fabric, leather, plastic and natural materials such as straw. Fabric bags, for example, can command a premium price if they come with genuine leather trimmings.

With approximately 6,000 suppliers in the line, China is the world’s largest production base for fabric bags. About 70 percent of makers have direct export capability while the rest course shipments through agents.

The US and the EU are the major destinations, absorbing more than half of exports. The Asia-Pacific region and the Middle East are also key markets.

Private locally owned companies dominate the industry, accounting for about 80 percent of suppliers. Hong Kong- and Taiwan-invested enterprises, and state-owned businesses constitute the rest.

Due to the financial crunch, the manufacturing base for fabric bags is expected to shrink 5 to 10 percent in the next 12 months. While a spate of factory closures already took place earlier this year, a significant number of plants are still projected to shut down because of slowing exports and fierce competition in the line.

The majority of suppliers are small and midsize operations that offer low-end and midrange designs. Large companies, capable of turning out more than 1 million pieces each month, represent about 10 percent of the industry. Most focus on the high end.

Small, midsize and large plants usually house similar production facilities. The number and origin of their equipment are what differentiates larger companies from the smaller ones.

In general, small and midsize suppliers perform only cutting and sewing in-house. Printing, embroidery and handcrafted work are often subcontracted to local specialists. In contrast, larger makers usually have their own printing facilities.

In terms of QC, midsize and large enterprises can carry out physical examinations in-house. These include inspections on yarn count, colorfastness and tear strength.

Chemical tests, on the other hand, are typically performed at third-party laboratories such as SGS, Intertek and BV.

Regardless of size, most makers offer other types of fashion bags, including models in genuine and synthetic leather, PVC, EVA, straw, raffia and cornhusk.

The provinces of Guangdong, Shandong, Zhejiang and Fujian are the major sourcing hubs for fabric bags, accounting for more than 70 percent of China’s outbound shipments.

Guangdong is the largest production center, offering an extensive selection of fashion bags in different types of fabric. About 40 percent of the country’s exports originate from this province. It is also the primary sourcing hub for synthetic and genuine leather bags in China.

There are at least 2,000 fabric bag suppliers in Guangdong and they are based mainly in Shenzhen and Guangzhou.

Companies in Shandong are thriving on a mature manufacturing base for cotton, making this province one of China’s leading hubs.

Shandong’s fabric bag exports go primarily to Japan and South Korea. Makers also offer models in synthetic and genuine leather, straw, cornhusk, raffia and rattan.

Accounting for about 15 percent of the country’s shipments, Zhejiang produces mainly low-end and midrange fashion bags in fabric, synthetic leather and PVC.

Manufacturers in the hub benefit from an abundant supply of raw materials and a well-established network of auxiliary industries.

Suppliers in Fujian focus on midrange fabric bags that are made of nylon, polyester and canvas. Releases in EVA, PVC and PU leather are offered as well.