The supplier is boosting visual appeal and increasing original designs.
Aiming to stimulate sales, Zhejiang Textiles Import & Export (Group) Co. Ltd is directing the in-house R&D team to upgrade garment aesthetics. At the same time, the parent business' manufactories and partner plants are allotting more capacity to ODM styles.
In Global Sources' interview with the supplier's president Jin Gang, he discusses initiatives taken to enhance products and strengthen company viability. Below are the excerpts.
In coming months, our company will continue to improve our garment and textiles lines. Visual appeal will be the key objective for apparel. Further, our product development team is now creating original designs.
Businesses should not depend solely on OEM orders. Considering other countries have begun developing their own manufacturing industry, China suppliers should start building their in-house brands. This will not be easy, however, as establishing a trademark within a few years is not realistic. The process should be implemented step by step.
Although many of our partner factories are located in Zhejiang and Jiangsu provinces, we are increasingly tying up with plants in the interior regions to be more cost-effective. When choosing suppliers, we consider their output quality, delivery time, stability, prices and environmental consciousness. The size is not important, but small factories are usually more flexible when accepting low-quantity orders.
We've heard that many businesses in Zhejiang province suffered power cuts this summer. Fortunately, we have not yet received any information from our subcontracting companies regarding the issue. But even if it were to affect us, we believe that our partner factories will coordinate production efficiently. For example, they will adjust the working schedule and adopt generators. Either way, we will continue to guarantee on-time delivery and quality.
Yes, we think this is possible in certain industries, considering the increase in material and labor expenses. In addition, other countries are now creating policies to encourage manufacture. We've read in the news that Vietnam currently produces 37 percent of Nike's shoes, surpassing China's output.
News of the issue circulated in May, but has now quieted down. It is said that rebates would drop from 16 percent to 11 percent. We don't think this will be implemented in the short term as the move is harmful to the entire textiles and garment industry. One likely effect would be a decline in orders.
In 2010, our export revenue totaled $350 million. This year, we hope to increase this by 15 percent. To reach this goal, we intend to cultivate sales in other markets apart from Europe.
Established in 1980, Zhejiang Textiles is a member of the Zhejiang International Trade Group and one of the major and earliest players in the country's fabric and apparel sector.
The company currently manages more than 11 subsidiaries, including Zhejiang Richtex and Zhejiang Richarvest. The supplier also has four manufactories and two large warehouses apart from its subcontracting partners.
For more information on Zhejiang Textiles, visit www.globalsources.com/zjtex.co.
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