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Sourcing Center
Shandong benefits from local support
Posted : January 30, 2008

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Baby romper
  This baby romper from Clever Baby comes in cotton and polyester. Price is 2.80.

Experienced manpower and government assistance bolster this major hub's growth.

Shandong has developed into one of China's top manufacturing centers of baby rompers, with growth fueled by a skilled local workforce and strong government support. In 2006, about 20 million baby rompers valued at $27 million were produced in this province.

An estimated 100 suppliers are clustered in Shandong. The bulk of production takes place in the cities of Qingdao and Yantai.

Privately owned enterprises make up 80 percent of the supplier base. The rest are state-owned companies and joint ventures between local and foreign investors.

This coastal province boasts a large pool of skilled workers from which makers can draw. Many of these have undergone training in academic institutions such as Shandong University.

Companies also benefit from local government support.Several economic and technological development zones were established with the aim of attracting more foreign investors.

Shandong's baby rompers industry, which generated shipments worth $22.5 million in 2006 or 15 percent of the country's export sales, is also bolstered by a well-developed transportation system.

Apart from Jinan's flight connections to every major city in China, Qingdao, Yantai and Weihai likewise have international airports with flights to domestic and overseas destinations.

In addition, Shandong boasts one of the best provincial-level highway systems in the country, including a considerable number of expressways.

Shandong suppliers are maintaining their hold on the low-end and midrange markets while increasing the quality of their products. Aside from baby rompers, they also offer bibs, blankets and clothing sets.


Export business
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Export business

Contract work dominates the export business in Shandong, with more than 90 percent of shipments under OEM and ODM.

Qingdao Horse Vista Co. Ltd is among the hub's OEM-oriented suppliers. All of its exports go to OEM and ODM clients. The US, Canada and the EU are the major destinations.

Qingdao Horse Vista expects sales to grow 20 percent in the next 12 months.

OEM orders constitute 100 percent of shipments from Qingdao Yijia Huayi Imp. & Exp. Co. Ltd. The trading company caters primarily to the EU. About 15,000 baby rompers are exported each month.

At Shandong Haiyue Import & Export Co. Ltd, all shipments are on an OEM or ODM basis. Other than rompers, it also offers baby and children's clothing sets.

A trading company with manufacturing capability, Shandong Haiyue exports to the US, the Netherlands, Belgium, the UK and Australia.

Sierra International Co. Ltd is another OEM supplier that ships baby clothes and soft toys, children's wear and promotional textile products to the US and Europe.

Ninety-eight percent of exports from Clever Baby Co. Ltd are under OEM contracts. Europe, Japan, the US, Canada and Australia are the destinations.

Some Shandong makers are now turning their attention to nontraditional markets, expanding their business in the

Middle East, South America, Australia and New Zealand.

Baby romper makers in Shandong are implementing stringent quality measures at all stages of production to ensure that products meet the requirements of key export markets.

A number of companies are investing in strict QC systems in order to perform safety and toxicity tests in-house. The majority of factories are equipped with production lines dedicated entirely to quality checks.

Raw materials, sourced mainly from ISO-compliant vendors, are inspected thoroughly prior to production to ensure they are free of or have minimal lead, nickel, chlorine, azo and formaldehyde content. Aside from being nontoxic, the fabric used should also be gentle on babies' skin.

Most suppliers in Shandong have set-up in-house laboratories to conduct tests on flammability and colorfastness.

To make certain that buttons, hooks and other small parts do not come off easily, finished products also go through pull tests.

Some makers, however, still send samples to third-party institutions such as SGS for further inspection.

Most baby rompers from Shandong are made of cotton or polyester, which are preferred for their flame-resistant properties. Designs range from simple white models to colorful embroidered types.

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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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