Since its establishment, the company has fewer than 500 employees and annual sales of less than 50 million yuan. It is now integrating R&D, production, branding, and logistics. Its annual sales are nearly 5 billion yuan, and its comprehensive competitiveness ranks second in the knitting industry in China. , Jiangsu Dongdu Textile Group has gone through a leaping development process for more than 10 years.
In today's global industrial chain, the curve of added value in R&D, production, and circulation shows high-end and low-middle forms; R&D and circulation have high added value and are at both ends of the curve; manufacturing and processing links have low added value and are at the bottom of the curve. . This is the "smile curve" theory in economics.
From the past low-end OEM to the five modern manufacturing bases that currently have R&D institutions, core technologies, foreign trade centers, independent brands, and distribution at home and abroad, Dongdu Group has initially completed the layout of the industrial chain on the world's economic map. The industrial center of gravity also shifts from processing and manufacturing to R&D and circulation. Transformation and upgrading allowed Dongdu Group to spin its own "smile curve".
In order to explore the mysteries of the leaping development of Dongdu Group, the reporter recently came to this large-scale textile and clothing group headquarters in Zhangjiagang City, Jiangsu Province, to learn more about its development ideas and implementation path.
Focus on independent innovation
Relied on "unique skills" unique market
Into the product showroom of Dongdu Group, rows of colorful fabrics attracted the attention of reporters. “This is the latest product independently developed by us.†Xu Weimin, chairman of Dongdu Group, pointed to the reporter and said, “Wearing this kind of composite fabric with heat can increase the temperature of body temperature by 2 to 3 degrees Celsius; that kind of antibacterial fabric even Do not wash for a few days and there will be no odor; There are special functional fabrics such as anti-UV, antistatic, quick-drying, sweat-absorbing, single guide water, etc., which are mainly used for making outdoor sportswear and are very popular in the international market......†Xu Weimin The eyebrows are full of pride.
“Structural adjustments, transformations and upgrades are the key to achieving a leap-forward development of Dongdu Group. If we stick to the rules at the beginning, there will be no Dongdu Group or even Dongdu Group.†Xu Weimin said with emotion when he reviewed the history of the company.
In 1993, Xu Weimin took over the predecessor of Dongdu Group, the insolvent Zhangjiagang City Knitting Factory. In the first few years, despite unremitting efforts, due to backward equipment and lack of technology, only low-end OEM products can barely survive. Sometimes, even the orders for “second-hand†and “three-handed†orders can only be accessed. The profit is extremely small. “If you want your company to get out of its predicament, you must change the status of backward equipment and low technological content to achieve a transformation and upgrade as soon as possible.†Since the late 1990s, Dongdu Group has just emerged from the "survival crisis", that is, tightening its equipment to the waist.
In order to improve the equipment level, Dongdu Group has almost stopped investing in other areas and concentrated its funds on "birds * exchange guns." By 2002, Dongdu Group's textile equipment was completely renewed, and it reached a world-class, domestic-leading position, which caused a lot of repercussions in the industry and brought a brand-new production environment for Dongdu Group.
After China's accession to the WTO, it has accelerated its integration into the process of economic globalization. Looking at many of the world's multinational companies, either rely on strong capital to gallop the international market, or rely on the core technology to lead the global peers. “We cannot be satisfied with the introduction of advanced equipment. We must have our own core technology and continuously enhance our ability to independently innovate.†The new situation has given Xu Weimin new thinking.
Since 2005, Dongdu Group has invested tens of millions of yuan each year in R&D, successively established the “National Textile Material Testing Center†with the Tianjin Textile Materials Research Institute, and established cooperation with Jiangnan University. “Jiangnan University—Dongdu Research and Development center".
“The R&D department is the most important core division of Dongdu Group. Every year, dozens of professional talents are introduced. Now there are more than 200 undergraduates, over 7 doctors, and a strong R&D team brings to the company. The 'prominentness' of development." Xu Weimin said.
After five years of research, Dongdu Group has exclusively developed eco-friendly plant dyes in China. This kind of "eatable dye" is processed by natural flowers, grasses, and pigments extracted from the stems, leaves, and fruits of trees, which changes the defects of traditional fabric dyes that are seriously polluted and harmful to human health. Good biodegradability and environmental compatibility.
In 2010, Dongdu Group obtained 4 invention patents and 459 appearance patents, 3 China Textile Industry Association “Textile Technology Innovation Awardsâ€, 3 “Jiangsu High-tech Productsâ€, and 1 Zhangjiagang Science and Technology Progress Award. Also won the "China Textile Industry Association Product Development Contribution Award."
Relying on eco-friendly plant dyes, this “unique skillâ€, Dongdu Group produces green eco-clothes and children's clothing in the domestic and international markets in short supply, many of the world's top brands have come to cooperate with Dongdu Group.
"Now we do not choose foreign trade companies, but we choose vendors, non-international top brand manufacturers do not." Xu Weimin's words reveal a bit of pride.
Develop your own brand
Strengthen international competitiveness
Directly facing the international trade market not only increases the profit level of Dongdu Group, but also broadens the company's international outlook, and in turn motivates them to move toward higher goals—developing independent brands. “Eco-children's clothing is the starting point for us to develop our own brand, which also relies on the core technology of our plant dyeing.†Xu Weimin said.
Over the past few years, Dongdu Group has successively developed ecological children's clothing brands such as “Esbetâ€, “Dongfengâ€, “Mengsiâ€, etc., among which “Esibide†has won Jiangsu Famous Brand, Jiangsu Famous Trademark, and National Inspection-free Products. , China's green fiber products and other honors.
Xu Weimin said that the so-called ecological children's clothing not only requires the use of plant dyes for dyeing, but also meets the growing requirements of children's body types for clothing. "Traditional children's clothing can be kept warm as long as it is. Now for children's healthy growth, there are more stringent requirements in the use of fabrics, layout design, etc. Isabed children's clothing covers all children's clothing needs."
Through the creation of the "Esbert" children's wear brand, Dongdu Group has also made new developments in its sales channels. “This year, we have increased 60 franchise (direct sales) stores throughout the country, and large and medium-sized cities such as Beijing, Tianjin and Chengdu have established brand distributors and specialty stores.†Xu Weimin said, “At the same time, we also adopted a three-dimensional sales model. Brand children's clothing must enter the mall, but also have franchise stores, and engage in network sales, but only take into account the low cost of network sales channels, our network sales of the brand and shopping malls and franchise stores and other main channel sales of the brand are different."
In order to expand the influence of Isbad in the domestic market, Dongdu Group has also organized a series of activities jointly with various media, such as organizing children's television costume shows and sponsoring national children's art activities, etc., not only for the promotion of children's clothing brands. The platform also brought joy to the children. “The brand is the image of the company. Not only must the company make profits, but it must also take the initiative to take its due social responsibilities.†Xu Weimin said.
In the past two years, the global financial crisis that has spread around the world has had a great impact on the manufacturing industry. Textile and garment companies are also in deep trouble. However, Dongdu Group’s children’s clothing exports are still increasing at a rate of 25% per year. In particular, the launch of the “Esibide†brand has maintained double-digit growth in sales in China. Xu Weimin said, “The profit margin of self-owned brands is several times higher than that of general foreign trade. We hope to make Yisibeide a national brand and allow Chinese infants and young children to choose more of our own brands. Children's healthy growth provides first-rate service, which is exactly the best means for Dongdu Group to enhance its international competitiveness.â€
Optimize the industrial layout
To make long-term vision with international perspective
For the layout of Dongdu Group's industry, Xu Weimin is full of confidence. “To take full advantage of the domestic and international markets in an international perspective to optimize resource allocation is an important path for the Group to transform and upgrade over the past 10 years.â€
As early as 2002, Dongdu Group made a strategic decision to transfer all foreign trade operations of the group company to Hong Kong and Singapore, and formed Dongdu Group’s own company through joint ventures, cooperation, and acquisition of foreign trading companies. International Trade "Global Business Order Center".
In 2003, Dongdu Group established a factory in Malaysia, which opened the prelude to the transfer of manufacturing bases. In 2004, it invested 150 million yuan to build a new clothing production base in Nantong. In 2005, it passed the form of equity participation and cooperation in Cambodia. Another overseas production base has been set up. At present, it has tens of thousands of employees; in 2010, it also established a new production base in the Central and Northern Jiangsu Provinces. Xu Weimin stated that this year the company has further consolidated and improved the "trade advancement" and "production transfer", and continued to increase cooperation with Australia and the United States and expand new trade cooperation relations. “Australian industrial transfer project has settled in Dongdu Group. Equipment is now in place. Product R&D institutions are also fighting for it. The acquisition of the second factory in Cambodia is negotiating and signing contracts, and it will be put into operation in the first quarter of next year.â€
At present, Dongdu Group has formed an internationalized pattern of “headquarters, R&D, brand organization and high-tech fabric manufacturing in Zhangjiagang, foreign trade centers in Singapore, manufacturing bases at home and abroad, and sales markets in the United States, European Union, and Japanâ€.
While adjusting the market structure, Dongdu Group also lost no time in adjusting the product structure. "Differentiation" management is one of the company's business strategies." Xu Weimin said that R & D and marketing are the two major priorities of the company's current product upgrade, "fabric focuses on R & D, with emphasis on the development of industrial textiles, the application of high-tech fiber industry, The increase in value-added products and the export of fabrics will strive for new breakthroughs in technological innovation, product innovation and technological innovation."
Xu Weimin believes that "the use of environmental costs in exchange for economic benefits can not be sustained." While focusing on promoting the development of production, Dongdu Group also actively promote energy-saving emission reduction. The Dongfang Textile Technology Industrial Co., Ltd., a fabric production base established by the Group in the Zhangjiagang Free Trade Zone, has adopted 10,000-ton sewage recycling equipment, and its reuse rate has exceeded 50%. The sludge produced during the production process can be used to burn and provide the heat energy required by the factory.
Adhering to the Zhangjiagang spirit of “unity, hard work, self-advancement, self-inflicted pressure, and daring to be the first to competeâ€, Dongdu Group also put forward the entrepreneurial spirit of “striving, leading, and pioneering.†Xu Weimin said, “Although our sales never reach 5000 Ten thousand yuan has grown to nearly 5 billion yuan, but the development path of the company has only just begun. We must look at the world and come up with the momentum of 'everything for the first', and strive to be the vanguard of the industry!"
In today's global industrial chain, the curve of added value in R&D, production, and circulation shows high-end and low-middle forms; R&D and circulation have high added value and are at both ends of the curve; manufacturing and processing links have low added value and are at the bottom of the curve. . This is the "smile curve" theory in economics.
From the past low-end OEM to the five modern manufacturing bases that currently have R&D institutions, core technologies, foreign trade centers, independent brands, and distribution at home and abroad, Dongdu Group has initially completed the layout of the industrial chain on the world's economic map. The industrial center of gravity also shifts from processing and manufacturing to R&D and circulation. Transformation and upgrading allowed Dongdu Group to spin its own "smile curve".
In order to explore the mysteries of the leaping development of Dongdu Group, the reporter recently came to this large-scale textile and clothing group headquarters in Zhangjiagang City, Jiangsu Province, to learn more about its development ideas and implementation path.
Focus on independent innovation
Relied on "unique skills" unique market
Into the product showroom of Dongdu Group, rows of colorful fabrics attracted the attention of reporters. “This is the latest product independently developed by us.†Xu Weimin, chairman of Dongdu Group, pointed to the reporter and said, “Wearing this kind of composite fabric with heat can increase the temperature of body temperature by 2 to 3 degrees Celsius; that kind of antibacterial fabric even Do not wash for a few days and there will be no odor; There are special functional fabrics such as anti-UV, antistatic, quick-drying, sweat-absorbing, single guide water, etc., which are mainly used for making outdoor sportswear and are very popular in the international market......†Xu Weimin The eyebrows are full of pride.
“Structural adjustments, transformations and upgrades are the key to achieving a leap-forward development of Dongdu Group. If we stick to the rules at the beginning, there will be no Dongdu Group or even Dongdu Group.†Xu Weimin said with emotion when he reviewed the history of the company.
In 1993, Xu Weimin took over the predecessor of Dongdu Group, the insolvent Zhangjiagang City Knitting Factory. In the first few years, despite unremitting efforts, due to backward equipment and lack of technology, only low-end OEM products can barely survive. Sometimes, even the orders for “second-hand†and “three-handed†orders can only be accessed. The profit is extremely small. “If you want your company to get out of its predicament, you must change the status of backward equipment and low technological content to achieve a transformation and upgrade as soon as possible.†Since the late 1990s, Dongdu Group has just emerged from the "survival crisis", that is, tightening its equipment to the waist.
In order to improve the equipment level, Dongdu Group has almost stopped investing in other areas and concentrated its funds on "birds * exchange guns." By 2002, Dongdu Group's textile equipment was completely renewed, and it reached a world-class, domestic-leading position, which caused a lot of repercussions in the industry and brought a brand-new production environment for Dongdu Group.
After China's accession to the WTO, it has accelerated its integration into the process of economic globalization. Looking at many of the world's multinational companies, either rely on strong capital to gallop the international market, or rely on the core technology to lead the global peers. “We cannot be satisfied with the introduction of advanced equipment. We must have our own core technology and continuously enhance our ability to independently innovate.†The new situation has given Xu Weimin new thinking.
Since 2005, Dongdu Group has invested tens of millions of yuan each year in R&D, successively established the “National Textile Material Testing Center†with the Tianjin Textile Materials Research Institute, and established cooperation with Jiangnan University. “Jiangnan University—Dongdu Research and Development center".
“The R&D department is the most important core division of Dongdu Group. Every year, dozens of professional talents are introduced. Now there are more than 200 undergraduates, over 7 doctors, and a strong R&D team brings to the company. The 'prominentness' of development." Xu Weimin said.
After five years of research, Dongdu Group has exclusively developed eco-friendly plant dyes in China. This kind of "eatable dye" is processed by natural flowers, grasses, and pigments extracted from the stems, leaves, and fruits of trees, which changes the defects of traditional fabric dyes that are seriously polluted and harmful to human health. Good biodegradability and environmental compatibility.
In 2010, Dongdu Group obtained 4 invention patents and 459 appearance patents, 3 China Textile Industry Association “Textile Technology Innovation Awardsâ€, 3 “Jiangsu High-tech Productsâ€, and 1 Zhangjiagang Science and Technology Progress Award. Also won the "China Textile Industry Association Product Development Contribution Award."
Relying on eco-friendly plant dyes, this “unique skillâ€, Dongdu Group produces green eco-clothes and children's clothing in the domestic and international markets in short supply, many of the world's top brands have come to cooperate with Dongdu Group.
"Now we do not choose foreign trade companies, but we choose vendors, non-international top brand manufacturers do not." Xu Weimin's words reveal a bit of pride.
Develop your own brand
Strengthen international competitiveness
Directly facing the international trade market not only increases the profit level of Dongdu Group, but also broadens the company's international outlook, and in turn motivates them to move toward higher goals—developing independent brands. “Eco-children's clothing is the starting point for us to develop our own brand, which also relies on the core technology of our plant dyeing.†Xu Weimin said.
Over the past few years, Dongdu Group has successively developed ecological children's clothing brands such as “Esbetâ€, “Dongfengâ€, “Mengsiâ€, etc., among which “Esibide†has won Jiangsu Famous Brand, Jiangsu Famous Trademark, and National Inspection-free Products. , China's green fiber products and other honors.
Xu Weimin said that the so-called ecological children's clothing not only requires the use of plant dyes for dyeing, but also meets the growing requirements of children's body types for clothing. "Traditional children's clothing can be kept warm as long as it is. Now for children's healthy growth, there are more stringent requirements in the use of fabrics, layout design, etc. Isabed children's clothing covers all children's clothing needs."
Through the creation of the "Esbert" children's wear brand, Dongdu Group has also made new developments in its sales channels. “This year, we have increased 60 franchise (direct sales) stores throughout the country, and large and medium-sized cities such as Beijing, Tianjin and Chengdu have established brand distributors and specialty stores.†Xu Weimin said, “At the same time, we also adopted a three-dimensional sales model. Brand children's clothing must enter the mall, but also have franchise stores, and engage in network sales, but only take into account the low cost of network sales channels, our network sales of the brand and shopping malls and franchise stores and other main channel sales of the brand are different."
In order to expand the influence of Isbad in the domestic market, Dongdu Group has also organized a series of activities jointly with various media, such as organizing children's television costume shows and sponsoring national children's art activities, etc., not only for the promotion of children's clothing brands. The platform also brought joy to the children. “The brand is the image of the company. Not only must the company make profits, but it must also take the initiative to take its due social responsibilities.†Xu Weimin said.
In the past two years, the global financial crisis that has spread around the world has had a great impact on the manufacturing industry. Textile and garment companies are also in deep trouble. However, Dongdu Group’s children’s clothing exports are still increasing at a rate of 25% per year. In particular, the launch of the “Esibide†brand has maintained double-digit growth in sales in China. Xu Weimin said, “The profit margin of self-owned brands is several times higher than that of general foreign trade. We hope to make Yisibeide a national brand and allow Chinese infants and young children to choose more of our own brands. Children's healthy growth provides first-rate service, which is exactly the best means for Dongdu Group to enhance its international competitiveness.â€
Optimize the industrial layout
To make long-term vision with international perspective
For the layout of Dongdu Group's industry, Xu Weimin is full of confidence. “To take full advantage of the domestic and international markets in an international perspective to optimize resource allocation is an important path for the Group to transform and upgrade over the past 10 years.â€
As early as 2002, Dongdu Group made a strategic decision to transfer all foreign trade operations of the group company to Hong Kong and Singapore, and formed Dongdu Group’s own company through joint ventures, cooperation, and acquisition of foreign trading companies. International Trade "Global Business Order Center".
In 2003, Dongdu Group established a factory in Malaysia, which opened the prelude to the transfer of manufacturing bases. In 2004, it invested 150 million yuan to build a new clothing production base in Nantong. In 2005, it passed the form of equity participation and cooperation in Cambodia. Another overseas production base has been set up. At present, it has tens of thousands of employees; in 2010, it also established a new production base in the Central and Northern Jiangsu Provinces. Xu Weimin stated that this year the company has further consolidated and improved the "trade advancement" and "production transfer", and continued to increase cooperation with Australia and the United States and expand new trade cooperation relations. “Australian industrial transfer project has settled in Dongdu Group. Equipment is now in place. Product R&D institutions are also fighting for it. The acquisition of the second factory in Cambodia is negotiating and signing contracts, and it will be put into operation in the first quarter of next year.â€
At present, Dongdu Group has formed an internationalized pattern of “headquarters, R&D, brand organization and high-tech fabric manufacturing in Zhangjiagang, foreign trade centers in Singapore, manufacturing bases at home and abroad, and sales markets in the United States, European Union, and Japanâ€.
While adjusting the market structure, Dongdu Group also lost no time in adjusting the product structure. "Differentiation" management is one of the company's business strategies." Xu Weimin said that R & D and marketing are the two major priorities of the company's current product upgrade, "fabric focuses on R & D, with emphasis on the development of industrial textiles, the application of high-tech fiber industry, The increase in value-added products and the export of fabrics will strive for new breakthroughs in technological innovation, product innovation and technological innovation."
Xu Weimin believes that "the use of environmental costs in exchange for economic benefits can not be sustained." While focusing on promoting the development of production, Dongdu Group also actively promote energy-saving emission reduction. The Dongfang Textile Technology Industrial Co., Ltd., a fabric production base established by the Group in the Zhangjiagang Free Trade Zone, has adopted 10,000-ton sewage recycling equipment, and its reuse rate has exceeded 50%. The sludge produced during the production process can be used to burn and provide the heat energy required by the factory.
Adhering to the Zhangjiagang spirit of “unity, hard work, self-advancement, self-inflicted pressure, and daring to be the first to competeâ€, Dongdu Group also put forward the entrepreneurial spirit of “striving, leading, and pioneering.†Xu Weimin said, “Although our sales never reach 5000 Ten thousand yuan has grown to nearly 5 billion yuan, but the development path of the company has only just begun. We must look at the world and come up with the momentum of 'everything for the first', and strive to be the vanguard of the industry!"
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