For nearly two decades, Bowen Tsui's family business in China has made garments to order for foreign clients to sell overseas under their own labels. Now, he believes the company's survival depends on whether it can design, brand and distribute clothing by itself.
About a year ago, the company began using two of its factory's assembly lines to make men's trousers, T-shirts and yoga pants stamped with its own name, Goodways Group. It purchased a new facility to use as a design studio, as well as a 30% stake in a Cambodian factory to manufacture both men's and women's activewear. To sell his goods in China and Europe, Tsui hired live-stream hosts to showcase products in the way of QVC and U.S. shopping channels, and he's looking for online merchants to reach American consumers.
The transition from simply manufacturing goods to conceptualizing and branding them is a result of China's changing economic landscape. Although the country maintains its status as the world's factory floor, accounting for more than a quarter of global manufacturing, lower costs in places like Vietnam and India are steadily luring operations away. At the same time, improved product quality and e-commerce channels have given manufacturers greater access to shoppers at home and overseas.
