Zhe­jiang Huachen rais­ing cur­tain on new era

China Daily (USA) - - BUSINESS - By ZHONGNAN in Guangzhou zhongnan@chi­nadaily.com.cn

The ex­port vol­umes of Zhe­jiang Huachen New Ma­te­rial Co Ltd, one of China’s big­gest cur­tain ex­porters by mar­ket share, will grow by 8 per­cent year-onyear to $13 mil­lion by the end of this year, thanks to its grow­ing in­vest­ment in the re­search and de­vel­op­ment of high value-added prod­ucts.

The Hangzhou-based com­pany is a typ­i­cal ex­am­ple of how tex­tile and gar­ment mak­ers in China are re­spond­ing to weak de­mand in de­vel­oped mar­kets and mov­ing up the value chain with high-end prod­ucts, as well as re­duc­ing their de­pen­dence on the orig­i­nal equip­ment man­u­fac­turer busi­ness model to en­sure their global mar­ket share.

It de­cided in 2014 to in­vest more than 7 mil­lion yuan ($1.04 mil­lion) an­nu­ally in the re­search and de­vel­op­ment of home tex­tile prod­ucts such as fire-re­tar­dant, heat-in­su­la­tion, anti-bac­te­rial and de­odor­ant high-end cur­tain prod­ucts.

The fast growth of China’s mid­dle class ... will boost do­mes­tic con­sump­tion.”

chair­woman of Zhe­jiang Huachen New Ma­te­rial Co Ltd

Sun Yue­hua,

Sun Yue­hua, chair­woman of Zhe­jiang Huachen, said as func­tional home tex­tile prod­ucts have been used in de­vel­oped coun­tries for more than seven decades, they have be­come in­creas­ingly pop­u­lar in South­east Asia, the Mid­dle East and South Amer­ica, as well as in China.

“The tex­tile in­dus­try will en­ter a new era as it has al­ready been raised as a new growth strat­egy in many de­vel­oped coun­tries,” said Sun. “It has up­graded with new in­dus­trial ma­te­ri­als, en­ergy sav­ing and in­tel­li­gent home prod­ucts to cre­ate new sales chan­nels and re­lated ser­vices.”

The com­pany ex­ported $8 mil­lion of its goods to more than 30 coun­tries and re­gions in the first three quar­ters of this year.

Zhe­jiang Huachen shifted its fo­cus to mar­kets in North Africa, the Mid­dle East, Cen­tral Asia and South­east Asia as eco­nomic growth in th­ese re­gions of­fer prospects for in­creased pur­chases of tex­tile prod­ucts.

“The fast growth of China’s mid­dle class and their grow­ing ex­pec­ta­tions for bet­ter qual­ity home tex­tile prod­ucts and new pur­chas­ing plat­forms such as e-com­merce, will boost do­mes­tic con­sump­tion,” she said.

The China Na­tional Tex­tile and Ap­parel Coun­cil has set a tar­get for do­mes­tic man­u­fac­tur­ers to achieve an av­er­age an­nual growth rate of 3.2 per­cent dur­ing the 13th Five-Year Plan (2016-20).

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