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Huarui: New Products To Seize Market Opportunities

2008/11/13 11:23:00 21

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"Clothing enterprises usually need 1-2 months to design and produce a new product, and our company only needs 1-2 weeks. This not only reduces the cost, but also reduces the market risk of foreign customers."

Kang Yihua, chairman of Jiangsu Huarui international group.

In the 1-10 month of this year, Huarui group exported $120 million, an increase of 35% and a gross profit of 14.4%, much higher than that of the same industry in China.

"The financial crisis will obviously affect the growth of the industry, but on the other hand, it also enables Chinese textile and garment enterprises to enhance their sense of risk."

Kang Yihua said.

As early as the late 90s of last century, after experiencing the downturn of the textile industry, Hua Rui began to adjust its structure and grade voluntarily, so as to prepare for the next industrial downturn.

Hua Rui is an early textile enterprise.

In 1999, 2 branches were set up in Vietnam and Kampuchea, and the number of employees abroad reached more than 2000.

According to the principle of comparative advantage, Hua Rui chose to set up production and processing workshops at low labor cost. In 2001, Huarui pferred some of its production bases from Nanjing to Chuzhou, Anhui. Recently, several branches were set up in Fengyang, Anhui, and small workshops were opened to farmers' doorways.

Because the logistics industry in Nanjing and Suzhou has high efficiency, abundant human resources and complete supply chain, Huarui has set up R & D and sales headquarters in these two places, with only a few dozen designers.

At present, there are more than 6000 employees in Huarui group.

Kang Yihua believes that the international market has shrunk this year, and the demand for Chinese textile and garment products has declined.

Recently, the domestic production cost has risen significantly. At the same time, there is a market crisis. Under the influence of multiple negative factors, the simple processing enterprises are bankrupt first.

Such enterprises lack core competitiveness, lack of R & D capabilities and market channels, and are very difficult to cope with.

"The most important thing for garment enterprises is the production time."

Kang Yihua said.

As an independent brand clothing export enterprise, Huarui often thinks about what products the market needs in the next period of time, and then develops a new style through cost accounting, design samples, fabric selection, customer identification and so on, which takes 1-2 months.

Such a development cycle is not a problem in the period of good market sales, but there is no advantage in the downturn of the market, because the operational risk of foreign customers has also increased, and it is difficult for conventional practice to adapt to the changing situation.

For this reason, Hua Rui employed fashion designers to keep track of trends abroad, including fabrics, styles, and so on, and analyzed costs. At the same time, he actively explored the possible styles with foreign designers, and quickly produced samples for foreign customers.

Through efforts, Huarui's new production cycle has been reduced to 1-2 weeks this year, and the number of new varieties has also increased greatly.

This is equivalent to providing a larger choice for foreign customers. At the same time, new products can get higher profits and reduce the market risk of customers.

Recently, a famous Canadian clothing brand named "Huarui" as the sole supplier of leisure brands.

At present, the export products of Huarui group account for 50% of the total export products, and 1/3 of the export garments are independent brands.

"With the gradual loss of cost advantage, enterprises with independent innovation capability and sales channels are more likely to get through the crisis."

Kang Yihua said.