Specialist
Former Director at Ningbo Shenzhou Knitting Co Ltd
Agenda
- China’s clothing OEM industry – market size, growth rate and competitive landscape
- Shenzhou International (HKG: 2313) – cooperation models, R&D process, production cycle and respective sales profit margins by clothing product categories
- Shenzhou International’s H2 2020 outlook – business opportunities and challenges due to the coronavirus pandemic
Questions
1.
At the beginning of the Interview, can you tell us about the development history of China’s clothing OEM industry, the competitive landscape dynamics and the changes in the way of production?
2.
You said that there is a game between Shenzhou International and its clients, namely clothing brands. Can you give some examples of this? What are the impacts of the game? You also mentioned that large clothing brands will start to pay attention to some small and differentiated orders. Can you detail the game between Shenzhou International and clothing brands such as Adidas, Nike, Uniqlo and Zara with examples?
3.
In China, some large foreign brands, such as Zara and Adidas, have encountered a sluggish market even though the sales volumes haven’t declined remarkably. We’re concerned about their stocks. How has these brands’ reducing market performance affected their upstream OEMs? How could these OEMs avoid any risks arising therefrom?
4.
Many factories have been relocated to some Southeast Asian countries. In terms of factory operations and costs, how many factories will be transferred to Southeast Asian countries in the future?
5.
In addition to the large scale, which competitive advantages does Shenzhou International have? How are its R&D capability and collaborative capability? What are the competitive barriers between Shenzhou International and other clothing OEMs?
6.
Can you talk on the important information related to Shenzhou International and China’s clothing OEM industry that is not mentioned above?
