Interview Synopsis

Shenzhou International – China’s clothing OEM industry outlook

  • Public Equity
  • Consumer
  • Greater China

Shenzhou International (SI), headquartered in Ningbo, is a major supplier to Nike, Adidas and Uniqlo. It is predominantly known for knitwear, although its other major categories include sportswear and casual clothing. In a recent Forum Interview a former director at Ningbo Shenzhou Knitting Co Ltd explored Sl’s outlook and how the OEM clothing industry operates.

Stitching together developments in the OEM clothing industry

The two main recent changes in the industry, according to the specialist, are quick response manufacturing and smaller, more scattered orders. As consumer tastes change rapidly, the clothing brands and manufacturers with the capabilities to meet these demands the quickest will be able to gain more market share.

With China’s improved economic standing and disposable incomes, clothes are purchased for fashion rather than fulfilling a basic need. People are looking for the added-value of brands and “consequently, there will be fewer and fewer low-end products, and the market will gradually be dominated by renowned brands that have high added value.”

Each clothing OEM has different specialties. “For example, SI performs well in knitwear and sportswear. Jasan is specialised in socks and seamless underwear. Hualida is an expert at jackets.” But what sets SI apart, in the expert’s view, includes its reputation, delivery speed and high profit margin.

The Interview also covered how the brands that OEMs work with operate differently. For example, Uniqlo “focuses on developing and promoting its own best-selling items continually” rather than plagiarising other designs or creating diverse styles. As a result, “OEMs can deal with this brand’s orders more efficiently and only need to co-ordinate with it in the delivery time.”

To access all the human insights from Third Bridge Forum’s Shenzhou International – China’s Clothing OEM Industry Outlook Interview, click here to view the full transcript.

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The information used in compiling this document has been obtained by Third Bridge from experts participating in Forum Interviews. Third Bridge does not warrant the accuracy of the information and has not independently verified it. It should not be regarded as a trade recommendation or form the basis of any investment decision.

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