China Council for the Promotion of International Trade (ccpit) 2009 Preface

China's Leather and Fur Garment City-Xinji

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China's Leather and Fur Garment City-Xinji

With a long history of over 400 years, Xinji leather business in Hebei Province originated from Ming Dynasty and thrived in Qing Dynasty. Xinji leather industry has bloomed since 1978 when China Xinji Leather and Fur Garment City and Xinji Leather Industrial Zone were established with US$ 345 million and intensive scale operation was realized. There are totally 1,438 leather enterprises in the city employing 60,000 persons, among which 191 are scale enterprises. They are mainly engaged in the production and operation of over 200 varieties such as leather, fur, leatherwear, fur wear, nick garment, fashion cold protective clothing, case and bag, glove, fur collar. As the largest leather production and marketing center in China, Xinji has established industrial chains of production sales, marketing, raw hide trade, raw and auxiliary material, modern logistics, information service and auxiliary industry of leather, dressmaking, finished piece making, leather machining, fur material. The major products sheepskin clothing leather and clothes stand for the advanced level of China, widely sold all over China and exported to dozens of countries and regions such as Russia, Korea, Japan, Europe and America and East Asia etc. In 2001, Xinji won the title of China Leather and Fur Garment City issued by China Light Industry Council and China Leather Industry Association. In 2004, the overall industry generated sales revenue of US$ 928 million and foreign export exchange US$ 406 million. Leather industry has become the pillar industry in Xinji city.

Established in 1993, China Xinji Leather City is the largest leather garment production and trading center in China. It covers a total area of 100 hectares and a building area of 1.3 million m². The total fixed asset investment stood at US$ 170 million. It owns 975 garment making enterprises and 194 finished pieces making enterprises. In 2004, it produced 6 million leather garments, 17 million finished pieces and generated sales revenue of US$ 480 million. The major products vary in more than 100 types of 4 series including sheepskin garment, fur garment, nick garment, fashion cold protective clothing. Shulan leather garment won the title of China Famous Brand Product; Pilot and Yiluqi won the title of National Free-Inspection Product; Ximan and Shulan have reaped the laurel of China Genuine Leather Mark for 4 consecutive years. 30 leather garment enterprises with 32 brands are allowed to wear China Genuine Mark, accounting for 25% of total accessible enterprises in China. 18 enterprises have obtained ISO90000 serial product certification. The Leather City was awarded as Top 10 Specialized Markets and Famous Market to Promote Feature Industry by Hebei Provincial Government, and Demonstration Plot of China Township Enterprises by Ministry of Agriculture.

Founded in 1997, Xinji Leather Industrial Zone is an environment-friendly industrial processing zone built with the help of United Nations. It covers a total area of 110 hectares and a building area of 900,000 m². The total fixed asset investment stood at US$ 160 million. It owns103 garment making enterprises, among which, 79 are large scale enterprises. In 2004, it produced 36 million all kinds of sheepskin leather pieces and generated an output value of US$ 448 million. Recently it has developed cow leather, sofa leather and luggage leather. Dongming Group, Pilot, Hongsihai and Tengyue company have been allowed to wear Genuine Leather Mark Eco-Leather, accounting for 23.5% of whole China. 5 enterprises obtained ISO9000 serial product certification. Leather making zone has invested US$ 22 million to build up leather making sewage treatment facility at of factory, zone and municipal levels, with sewage up to discharge standard. With dewatered sludge firing pavement bricks, its sewage treatment level tops China. This zone has become leather making environment-friendly base with the largest scale, top quality, complete varieties and the best sewage treatment.

8.3 China Sports Shoes Production Base-Jinjiang, Fujian

Jinjiang City in Fujian Province is an important walking shoes and sports shoes production base in China. Some shoe-making enterprises in Jinjiang put emphasis on creating self-owned brands and promote product quality. They take technology progress as a lead, pay attention to technology upgrading investment and introduce senior talents and advanced technology to promote upgrading and updating of products.

20 years ago, Jinjiang shoe-making industry seized the opportunity of international industrial transfer, obtained competing advantages depending on local labor resources and created a miracle of fast development. At present, shoes industry has become a trump card among Jinjiang serial industries. There are more than 3000 shoes enterprises in the city, 445 shoes export enterprises. More than 350,000 employees in total produce over 700 million pairs of all kinds of shoes every year with an annual output value over 20 billion yuan. Walking and sports shoes output accounts for 40% of China and 20% of the world. 60% of the products are sold internationally in over 80 countries and regions. A set of competitive products, such as Anta, Athletic, Airo, 361° and Xtep etc., enjoy a large market share and have become leading brands in this industry.

It's not exaggerating for all Jinjiang visitors to say to know Jinjiang from shoes. Entering Chendai Town, the major production base of Jinjiang shoe-making industry, you are in a world of shoes. Businessmen are everywhere at shoes shops in great numbers. Four main streets in shape of井 are filled with 600 shoes shops, forming miles-long market integrating retails of shoes and materials, storage and transportation shoe machine exhibition and sales. Chendai shoe material market, together with Dongguan in Guangzhou and Wenzhou in Zhejiang are China's top three markets of shoe materials. Nothing related to shoes is wanting here, from shoe machine to spikes and buttons. Various shoes advertisement everywhere on the house roof or the wayside etc. dazzles the walker's eyes. This market has attracted shoe machine and material businessmen from over 30 countries and regions to run business here. With an annual transaction volume exceeding 8 billion yuan, Chendai Town has become the largest shoe material market in east China.

In 1980s, Jinjiang people made shoes with traditional tools such as sinkers, scissors and sewing machine etc. They produced bead slippers and vulcanized shoes which required small investment and common technology mainly in home workshops in an extensive production manner, and, generated low benefits. Since 1990s, Jinjiang shoe-making industry introduced advanced production equipment at home and abroad in joint venture manner and stepped into the fast lane by increasing investment, enlarging operation scale. As long as brand becomes the main consumption orientation, some strong and insightful enterprises in Jinjiang give priority to creating self-owned brands and promote product quality. They take technology progress as a lead, pay attention to technology upgrading investment and introduce senior talents and advanced technology to promote upgrading and updating of products. By the end of 2003, Jinjiang set up a State Key Laboratory for Shoes Inspection.

The awakening of brand awareness brought about the brand creation upsurge in Jinjiang shoes industry. The brand strategy promoted by the city served as a foundation for its industry to transfer from product operation to brand operation. At present, the industry in Jinjiang owns 32 China Famous Trademarks and China Famous Brand Products, accounting for more than half of China's sports shoes industry. There are also over 60 brands selected as Fujian Famous Brands and Trademarks. More than 30 enterprises established over 100 business branches in over 20 countries and regions like USA and Russia. Enterprises such as Anta own thousands sales outlets and exclusive stores in large and medium cities in China. In 2003, Jinjiang brand gave a collective shot to global market and set up China Shoes City Jinjiang Street in Asian Center, Budapest, Hungary, where more than 30 shoes-making enterprises in Jinjiang opened production and sales alliance relationships with internationally well-known brands.

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