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Hiking backpacks

Optimal resource usage offsets effects of crisis
Posted : May 08, 2009
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Hiking backpack
  Quanzhou Hexiang makes backpack model HX354, which has an 840d polyester shell and 210t nylon lining.

Makers enhance efficiency by using fabric more economically and training workers to integrate similar production processes.

China’s backpack industry is embarking on a series of efficiency upgrades meant to help suppliers survive the impact of the global financial crisis.

A number of companies have seen exports drop as a result of slowing economies in major markets. Many of the smaller makers, particularly those that handled subcontracted work for larger factories, have closed down.

Even some of the big companies felt the effects of the worldwide crunch, and are now left with unutilized cutting and sewing lines.

Given the current economic climate, many suppliers are planning to invest in advanced equipment such as computerized sewing machines to boost efficiency and productivity.

They are also following the lead of midsize and large makers that were able to achieve modest export growth in 2008. These companies restructured their sewing and packaging workshops to maximize manpower and minimize production processes. Similar steps that used to be done separately are now integrated and carried out by one worker.

Moreover, suppliers have become increasingly conscious about fabric usage. Patterns are set closer to each other and laid out in a more logical and economical manner to minimize wastage. Workers are being trained to improve cutting skills or use automatic equipment to eliminate the number of flawed pieces.

To generate improved sales, many companies are providing better service to buyers. Free samples used to be offered to existing clients only, but these are now made available even for new customers.

Sampling time is reduced from the typical one week to just three to five days. A few makers can even finish prototypes in one day.

Further, suppliers are increasing their participation in international trade shows such as those in Hong Kong and Germany.


Casual, fashion backpacks prevail
Ancillary industries bolster exports
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Hiking backpack
  Model SP-B0915 from Skyport features a 2L water bottle compartment. It measures 28x5x49cm.
Casual, fashion backpacks prevail

China makers offer casual, fashion, laptop, hiking and wheeled backpacks. Casual or fashion models dominate exports.

In general, backpack makers in China have weak R&D capability. Small companies typically do not have in-house designers, while midsize suppliers have between five and 10. Although the majority have CAD/CAM systems specific to bags, the facilities are used mainly to expedite buyers’ designs and samples and not for creating original, in-house styles.

Even so, in-house teams continue to carry out R&D work. The emphasis is on producing bags that are colorful, multifunctional, lightweight, durable, comfortable and ergonomic. The latest models come in black, red, navy or sapphire blue, orange, or apple green. Two-tone versions or those with color-contrast piping are available as well.

The packs are fitted with multiple compartments to increase capacity. Most come with main and secondary compartments or pockets. Many have mesh side pockets for drinking bottles.

There are also rubber patched outlets for the earpieces of mobile phones or portable media devices. The compartments for various electronic gadgets are padded for shock resistance. Many are water-resistant as well.

Laptop models have detachable and padded sleeves.

Rucksacks come with as many as six pockets. Recent releases have thermal compartments for food and beverages.

In addition, makers are introducing hiking and rugged backpacks that feature built-in hydration pouches or water bladders that have leak-resistant drinking tubes. Reservoirs may be insulated to keep the water cold.

Moreover, models are fitted with bungee cords, equipment straps or a combination of both that can be used to fix equipment to the outside of the pack.

Further, companies are enhancing the functionality of hiking backpacks by launching designs with solar-powered chargers for personal electronics.

Suppliers are also highlighting comfort, especially on large models for sports and travel. Hiking backpacks feature slim and lightweight aluminum and molded PE internal frames that provide greater flexibility and balance.

Padded straps and sternum belts help allocate load evenly as well. Padded shoulder harnesses ensure ease of movement and avert underarm chafing. The sternum straps help prevent the shoulders from being pulled backward.

Back panels are padded and covered with mesh to promote air circulation. In addition, sandwich mesh is used at the backs of the bags for increased breathability.

Extra-soft materials are used for improved comfort. For example, a new type of 230d polyester twill, which can be folded without wrinkling, is adopted for the shell.

Durability is enhanced with the use of nylon or polyester ripstop with PU coating. Some models incorporate the material to a thickness of as much as 65mm for the shell. Further, denser stitches are employed and webbing joints are bar-tacked as an added precaution.

Models also come with more-rigid handles and wider straps to avoid sudden breaks and arm strain.

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Ancillary industries bolster exports

China is one of the world’s largest producers of backpacks, supplying at least one-third of global output. The country is home to more than 1,500 suppliers, 70 percent of which are private businesses. More than 20 percent are funded by investors, including those from South Korea, Japan, Hong Kong and Taiwan.

The US, the EU and Asia are the main export destinations. Slowing economies in these areas have led a number of companies to increase shipments to emerging markets such as Eastern Europe, the Middle East, Africa and South America.

OEM orders account for about two-thirds of exports.

Thirty percent of outbound shipments are under ODM and the rest are OBM.

Production is concentrated in the coastal provinces of Fujian, Zhejiang and Guangdong. Backpacks made in these hubs exceed 60 percent of national output and exports.

Fujian accounts for approximately one-third of the country’s overall supply, with manufacturing centered in the cities of Quanzhou, Fuzhou and Xiamen.

Quanzhou alone contributes 90 percent of the province’s exports. The hub is home to nearly 500 backpack manufacturers, 90 percent of which have export capability.

Fujian makers generally offer midrange backpacks, although low-end and upscale models are also available.

In Zhejiang, low-end and midrange designs dominate output. Most of the factories are based in Yiwu, Dongyang, Jiaxing, Ningbo and Wenzhou.

There is a well-established network of ancillary industries within the province, giving suppliers convenient access to raw materials and specialized processes. Lower labor and real estate costs, as compared with other hubs, are secondary advantages.

Overhead expenses are a lot higher in Guangdong than in Fujian or Zhejiang, and this is why many companies have shifted their focus to high-end models.

Key production hubs include the cities of Guangzhou, Dongguan, Shenzhen, Zhongshan and Foshan.

Guangdong has a full range of support facilities, including fabric mills, materials and components factories, R&D centers, and quality control and testing laboratories.

Makers enjoy the advantages of having easy access to raw materials and skilled labor. The province’s proximity to Hong Kong provides companies extra leverage against competitors in other hubs as well.

Suppliers in Guangdong, for instance, are able to benefit from the SAR’s R&D strengths. Additionally, proximity to Hong Kong makes it easier for companies to cull industry insights from major buyers.


Quanzhou Hexiang makes backpack model HX354, which has an 840d polyester shell and 210t nylon lining.

Note: All price quotes in this report are in US dollars unless otherwise specified. FOB prices were provided by the companies interviewed only as reference prices at the time of interview and may have changed.
Disclaimer: All product images are provided by the companies interviewed and are for reference purposes only. Those product images featuring products with trademarks, brand names or logos are not intended for sale. We, our affiliates, and our affiliates' respective directors, officers, employees, representatives, agents or contractors, do not accept and will not have any responsibility or liability for product images (or any part thereof) which infringe on any intellectual property or other rights of a third party.
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