Decoding The Mystery Of Datang Hosiery Industry'S "Puppy Economy" Conquering The World

There is an American city called Penn castle, which once produced 8 pairs of socks in the world.

However, after the rapid growth of hurricane force in Datang Town, Zhuji City, Zhejiang Province, the world's socks trading center has been pferred to Datang without controversy.

As the famous economist Zhong Pengrong said, the Datang socks industry and the whole Zhejiang's economic model are all "puppy economy". Compared with zebra, a small dog's strength is weak and not its opponent. However, a group of puppies work together, some bite the zebra's legs, others bite their throat, and eventually they will kill the zebra.

The advantage of "puppy economy" is division of labor.

The Tenth China International hosiery Fair opened in Datang.

The information conveyed by this sock Expo is: in the 1-8 month of this year, the socks industry in Zhuji realized output value of 37 billion yuan, an increase of 22.55% over the same period last year, and realized sales revenue of 34 billion 400 million yuan, an increase of 21.20% over the same period last year, producing 12 billion 500 million pairs of socks.

The production of Datang socks accounts for 65% of the whole country and 1/3 of the world's socks.

In International

Go out to understand the rules of the world game

In the 70s of last century, I didn't know who sold socks for the first time in the market on the road side of Datang town.

The village women put a pair of nylon stockings into the bamboo basket, holding socks on the road beside the road, with a desire to get rich.

Now, in WAL-MART supermarkets around the world, one pair of socks has been taken away from the shelves. The column of origin says: China, Datang.

Such metamorphosis, in Zhuji Datang town Party committee secretary Yuan Zhigang, this is derived from: "go out and understand the rules of the game of the world."

In the international textile industry, the Las Vegas international clothing and fabrics exhibition, founded in 1933, has a strong market appeal.

In August 2010, a special stand appeared on the exhibition, which was covered with "ZHEJIANGZHUJI" logo.

The booth was organized by the government of Datang town of Zhuji. The exhibitors were 41 Local socks enterprises.

This is the largest overseas exhibition group organized by the government so far.

After coming back from the US exhibition, many socks enterprises in Zhuji have opened their feet.

Zhejiang Sanet socks Co., Ltd. is the largest stocking export enterprise in Zhuji, and more than 95% of its products are exported to the US market.

Luo Jida, chairman of the board, visits the United States every year to discuss business.

Speaking of this exhibition, Luo Jida said: "41 enterprises participating in the exhibition can improve the international popularity of Datang Hosiery Industry."

The initiative to move towards the international arena is the function of attracting the public.

"On the two day, it became a 100 million yuan order.

Many international customers have come to Datang continuously.

The Datang Hosiery Industry has circumvent the international middlemen and has directly grasped the subdivision demand of the international market.

Yuan Zhigang, who arrived in 2008, told reporters that in recent years, Datang's export-oriented economy has made breakthroughs, with more than 40 million dollars of contracted foreign capital being introduced each year.

Nowadays, in the streets of Datang, we can see the factories and service points of the famous socks and raw materials enterprises in the world such as DuPont, Germany Bayer, Japan and Itochu.

There are also "international profiteers" of all kinds of skin color. Pakistan people NDR, JB, JR and ALB, the oldest 36 years old, the youngest 24 years old, can speak Chinese.

From 3 years ago, they came to the Tang Dynasty every year for many times. In their view, Datang socks were cheap and well received by the people of Pakistan.

"It's good here."

At the same time Datang

Datang socks and the world market are in an unprecedented honeymoon period.

Farewell to the era of "dressing for others"

In international and domestic markets, there is no doubt that strong brands are needed.

At present, the Datang Hosiery Industry has 3 Chinese brands, 2 Chinese exemption products, and 11 Chinese brand names.

Lu Changquan, a professor and marketing expert of Peking University, once worked with the Zhejiang Qingyi socks industry Co., Ltd., which is located in Datang. He said: "the slogan of" a pair of love socks and 99 new cotton "is widely spread in China.

Qingyi socks industry has broken through the bottle strength, stepped out of the vicious price competition, and rose to a new brand height.

But Lu Long's worries also sounded the alarm for the Datang socks industry. He said: "the Datang socks industry has given me the impression that there are many factories and few brands of products.

Mention of Zhuji is the capital of China's socks industry, but the big brands are rare.

Most of them are processed by generation, so it is easy to fall into the whirlpool of price war and cost war.

Therefore, the Datang socks industry should upgrade and pform from the processing base of the world socks industry to the world hosiery brand base. Once the upgrade is completed, the Datang socks industry will truly have the market competitiveness.

Reporters learned that the Datang socks industry is accelerating the farewell to the era of "dressing for others" and accelerating the creation of the regional brand of Datang Hosiery Industry.

At present, Zhejiang Quality Supervision Bureau recommends Datang socks industrial cluster to declare the establishment of the national famous brand demonstration area.

At the same time, we should actively support enterprises to create brand, and strive to make Datang a collection of well-known brands of hosiery industry.

Yuan Zhigang also revealed that Datang socks Co., Ltd. is being formed, including 9 socks enterprises and Datang socks city in China.

Under the platform of the newly opened "China Datang socks city", the brand carrier is becoming more and more shaped.

An efficient industrial chain from a cotton to a pair of socks

Out of the country, brand effect can not really make "Datang hosiery machine ring, the world a pair of socks".

The core competitiveness here lies in the high efficiency industry chain.

There is a widely circulated story that if the Italy hosiery machine of a stocking factory in Penn fort is broken, it may take two months to get the new parts. In Datang, it will take only one hour to solve the problem.

In another story, some Japanese and Koreans rooted in Datang, where they invested in stocking factories, because in this world, only in the name of Datang, they can get all the raw materials they need in half an hour.

These stories explain why Datang can conquer other regions and become the secret of international socks.

From a sock to a pair of socks, who is the most efficient, who can conquer the world.

In remote Xinjiang, the farmer picked off the first cotton in the season. The cotton was pported to Datang. After the Tang Dynasty, it was processed into cotton thread. After dyeing and adding, it was entered into the production line of a certain socks and was woven into socks.

The stockings after being set are adhered to labels of various languages and sent to

The efficient industrial chain has been formed since the 80s of last century.

Yuan Zhigang, Secretary of Datang town Party committee, briefed reporters about the industrial structure advantage of the town. He said: "the horizontal division and vertical division of labor in Datang Hosiery Industry Cluster is very obvious. Now it has formed a very complete industrial chain, including the production of socks manufacturing machinery to all kinds of raw materials, and then to the production, dyeing and finishing, stereotype, packaging, marketing and logistics of socks."

"It can be said that any advanced socks and accessories can be bought in Datang. Any socks can be produced and any main material can be produced and configured.

Because of the integrity of the industrial chain, the factors of stocking production are highly concentrated, and the cost of resource allocation has been greatly reduced, and the competitiveness has been greatly enhanced.

It is estimated that Datang can reduce the cost by 1/4 to 1/3 because of the advantages of industrial clusters and industrial chains, thus becoming an inexhaustible motive force and a magic weapon for the development of socks industry.

Yuan added.

Therefore, a reporter who came from the US commented: China's advantages in the global market are far more than cheap equipment, raw materials and labor. Its use of industrial clustering is totally unacceptable to the United States.

Reporters learned that by 2015, Zhuji socks output reached 20 billion pairs, an average annual increase of 3.5%, the output accounted for 65% of the country; industrial output value of more than 64 billion yuan, an average annual increase of more than 10%.

It can be said that in the era of business, economy and globalization in twenty-first Century, the small town represented the rise of a Chinese way.

However, in China, there are many small cities like Datang which extend their own channels to the world.

These small towns defeated the powerful Americans and Europeans and gradually penetrated into every corner of the global market with firm and lasting power.