Qingdao Kute: Establish a Smart Production Chain
“We take pride in being the designated garment supplier for the China Pavilion of the Expo 2017. We will provide the quality and tailored services as always and showcase the charm of working staff of the China Pavilion.” said the personnel of brand center of Qingdao Kute Smart Co., Ltd., which has become the designated garment supplier for the China Pavilion of the Expo 2017.
The focus on smart, flexible and personalized production has become the main reason for Qingdao Kute to become the cooperation partner of China Pavilion of Expo 2017 Astana. The company’s C2M (Customer-to-manufactory) model has become the study case for other companies and research institutions.
Consumers could get access to Kute’s website through computer and mobile app, to select the style, design and raw materials of the product, place orders and settle the payment online. So the product order, transaction, payment, design, manufacturing, logistics and after-sales services could be finished on the internet through digitization. “Our factory will not start production until the customers place orders. So we don’t have liquidity issue in terms of capital and inventory. The cost of tailored productions has 10% higher than normal mass production, but the profits will double,” said working staff of brand center of Qingdao Kute.
“Now the Kute Smart is not only a garment production company and it has a comprehensive approach and model to transform traditional manufacturing through big data and smart production.” The starter of Qingdao Kute Zhang Daili said that the smart transformation of traditional factories is a large niche market. Qingdao Kute has incorporated scale production and tailored services into solutions that could also apply to other industries. It is said that Qingdao Kute has signed contracts with about 100 companies in jeans product, hat, show, furniture, making and electrical product industries, for enterprise upgrading and transformations. After three months of work, the enterprise efficiency picked up 30% and the costs re-
duced by 20%.
Now some Southeast Asian enterprises are coming to learn and introduce the smart production model of Qingdao Kute. Qingdao Kute said that the company is building an international business group to establish direct contacts with end customers, to avoid business intermediaries. After years of transformation and upgrading, Qingdao Kute’s smart production capacity could meet tailored demands of the European and U.S. Markets. The OEM model with low added value has been replaced and the company’s product structure keeps improving with higher added value products. Take Q1, 2016 for example, the revenue coming from OEM business has reduced to zero and the company only produced tailored products. The corporate profits have risen markedly.
Qingdao Kute has received various customers from the U. S., Germany, Australia, Japan, S. Korea, Thailand, Taiwan and Hong Kong. “Besides those mature markets of the U.S., Canada, the U.K., Germany and France, Qingdao Kute is striving to enter more overseas countries and regions,” said working staff of the brand center of Qingdao Kute.