Growing with the flow in swimsuit business

By Yao Jing and Liu Ce (China Daily) Updated: 2012-07-21 11:23

Unlike other industries, the swimsuit industry was not affected by the economic crisis. Instead exports have grown from $50 million in 2008 to more than $100 million now. According to Yu, the penchant for customers to frequently change their swimming gear and the fact that a large number of swimsuit makers in South China have exited the business have helped companies in Huludao.

"But we earn a profit of just 10 yuan from each swimsuit," Wang said.

Though the number of orders is growing, Wang said she has to reduce customers to keep up with the load. She says it is easier for workers to execute repeat orders, while another option to reduce risks is to accept orders from big companies.

Recently, Wang bought a new 10,000 sq m workshop not far from the present one to improve the company's productivity.

But the export company with an annual income of 40 million yuan, has also made the significant move up the ladder by becoming the co-owner of a swimsuit brand, Bonishi, in Italy and France.

"The nine owners will jointly produce for the brand. I think the profit from the brand will be largely improved compared with original equipment manufacturing," Wang said.

Zhang Cun, another second-generation entrepreneur took over his father's company, EC Garment Manufacture Co Ltd, when it was on the verge of collapse seven years ago. He is looking to strike an independent path with his own brands.

"Labor costs are rising in China, and we will lose the advantage of cheap manufacturing in the near future," Zhang said. He registered a brand, Balneaire, in Paris in 2009. It is now sold in France, Italy and Spain.

"I am just testing the market, but I know I have to do this no matter how difficult it is," Zhang said.

Fortunately, he has scented some success as the brand now accounts for 5 percent of the company's total income of 30 million yuan.

Most of the swimsuits are first sold in European countries, as it is easier to make inroads due to the common culture and similar market characteristics, he said. His swimsuits are sold for $10 on the wholesale market. In order to better position the brand, he also regulates the lowest retail price at $30.

"I don't know how long it will take to nurture the brand, but I am prepared to go through tough times," he says.

Apart from developing the industry platform, Li is also looking to further expand his business in overseas markets.

Li's company spent $5 million to buy the US-based Ingear Corp, a supplier of swimsuits, holiday clothing, and leisure clothing, along with Huludao Stava Sportswear Co Ltd, in 2009. To tap the markets in Eastern Europe and Russia, the company completed the acquisition of Russian company Gilitskiy Igor, mainly engaged in research and development, distribution and retail of garments, in 2010.

"We are also trying to attract international buyers and distributors by joining Mode City, one of the world's largest intimates, swimwear and wellbeing trade show in Paris," Li said.

Contact the writers at yaojing@chinadaily.com.cn and liuce@chinadaily.com.cn.