Textile city weaves a success story

Companies bank on quality to consolidate gains in domestic market, expand overseas

You cannot mention Nantong without mentioning its textile industry. The city, which is in the central part of East China's Jiangsu province, has China's largest number of textile companies. Nantong Home Textile Market, also known as Zhihao market, mainly supplies fabrics. Located in Nantong's Tongzhou district, it has attracted more than 200,000 people to work for its 2,800 textile companies.

"In 1987, 21 local farmers raised 10,500 yuan ($1,680; 1230 euros) and founded the market," says Shi Yaxing, who works in the market's administration office. "After years of development, now 200,000 people are working for the textile industry in Tongzhou district. Sales in the market in 2013 reached 55 billion yuan.

"Customers can find the right goods, no matter what materials and patterns they want, in Zhihao market."

Shen Jiandong, manager of Gold Sun Textile, which produces fabrics, says the company has established a professional team, including experts from the United States, to design patterns and research the market.

"Besides ordinary fabrics, customers may also expect to see those with special functions, such as fire-resistant and mite-proof products," Shen says.

The intellectual property protection system established by the market has contributed to its healthy development.

"The designs of the patterns are very easy to pirate," Shen says. "Since more than 30,000 patterns are designed in our textile industry every year, a strict protection system had to be established to protect the work and creativity of the workers."

In March 1997, the local government formed a copyright management office to protect intellectual property. In 17 years, the office has dealt with more than 2,500 cases and settled 2,100 of them.

An intellectual property rights protection court has also been established inside Zhihao market. Its five judges deal with infringement cases in an hour after receiving reports and materials.

"To upgrade the textile industry, the market has invited professionals and experts nationwide to form a textile industry research institute, which will be established by 2015," Shen says.

Also, the market's administration office has held a pattern exchange fair for professionals to communicate every year since 2008. More than 180,000 patterns have been shown at the fair.

In 2013, 288 design companies attended the fair, 40 of which came from foreign countries such as Italy, France and Japan.

The market also provides a professional logistics company, Flying Crane, to deliver goods. The company delivered 2.8 million tons of goods to all the provinces in China and foreign countries in 2013.

China Dieshiqiao International Home Textile City, which is in Haimen, a county-level city in Nantong, is currently China's largest textile market for end products.

As early as the Qing Dynasty (1644-1911), people started to sell and buy embroideries in the Dieshiqiao area. The local government officially established the market in 1982.

Now people from more than 350 large and medium-sized Chinese cities and 130 countries and regions have become customers of the Dieshiqiao market.

Pan Chunhua, a salesman for Lanfu Home Textiles, says the Dieshiqiao market is well managed and provides various services, such as offering exhibition information, for its merchants.

"The market, which is listed as a national tourist attraction, also provides a pleasant and neat environment for both workers and customers."

The Dieshiqiao market now occupies 1 million square meters and has attracted more than 700,000 people to work for the 2,500 local textile enterprises there.

"About 100 of those 2,500 enterprises have reached 100 million yuan in sales," says Yu Xinmei, a worker from Haimen's publicity department. "The market now houses more than 10,000 stores selling ordinary and high-end products from about 600 brands.

"Customers can also choose their favorite goods in the exhibition area that occupies 100,000 square meters."

Qin Peng, general manager of Meiluo Home Textiles Company in Haimen, says his company provides more than 100 new styles every year.

"Customers, both domestic and foreign, can find the right products in our factory," Qin says. "We provide more than 1,000 kinds of products with different material and patterns for customers to choose from. The techniques we use are the world's most advanced."

According to Qin, Meiluo is one of the many companies that are seeking opportunities in foreign markets.

"Our company's annual sales have surpassed 100 million yuan, but only 10 percent is from foreign markets," he says. "Now we participate in exhibitions in Germany, Russia and Brazil to learn from others and attract more customers.

"The quality of our products meets the requirements of all countries. We can also make products according to the customers' demands."

Dong Lei, a salesman for Mingchao Home Textile, says his company's products are as good as those from other countries but are cheaper.

"Our sales in foreign markets have reached 300 million yuan, which is triple those in the domestic market," he says.

"Our company provides about 2,000 kinds of products with new patterns and materials every year."

Also, more than 60 percent of the companies in Dieshiqiao have e-commerce sites, which now account for 30 percent of total sales.

"It makes it more convenient for foreign customers to buy high-quality goods from Dieshiqiao market," says Yu from Haimen's publicity department.

Though the Dieshiqiao market has almost 100 hotels and restaurants, it plans to establish a 150,000-square meter central business district, which will include four-star hotels, high-end residential buildings and shopping malls.

cangwei@chinadaily.com.cn

(China Daily European Weekly 05/23/2014 page16)