102 projects have been introduced; 116 enterprises in the industrial chain have poured in; a number of well-known bag & leatherware enterprises such as Neoent and Leaves King have settled; a development pattern spanning the entire industrial chain has basically formed, from finished products, pull rods, wheels, linings, masterbatches, zippers, webbings and packaging to foreign trade and e-commerce; and an “international city of bag & suitcase” has taken shape...
In less than two years, the bag & leatherware industry in Huaihua has grown from scratch and delivered outstanding performance, becoming an important pole of bag & suitcase industrial clusters in China and even the world. On November 18, the 2024 Bag & Leatherware Industry High-quality Development Conference was held in Huaihua, which brought together over 150 experts, scholars and entrepreneur representatives from all over the country. They offered constructive suggestions on the high-quality development of the bag & leatherware industry.
(At the conference Industrial leaders gather to advise on industrial development)
After years of development, the bag & leatherware industry in China has accounted for more than 70% of the global market share. China is not only a global manufacturing center, but also the world’s largest consumer market.
Huaihua has seized the opportunity of the central and western regions to absorb the relocated bag & suitcase industry. By leveraging smooth customs clearance for export, abundant human resources, low logistics and express delivery costs, and sufficient land and plant supply at Huaihua International Land Port, the city has moved faster to develop the bag & leatherware industry as one of its 10 key industrial chains and one of the three characteristic industrial clusters since last year. It has also worked to incorporate the industry into the “4×4” modern industrial system of Hunan Province and introduced several policies in support of the high-quality development of the bag & leatherware industry.
In just over a year, more than 100 companies including Xiangtong Industry and Leaves King, finished product manufacturers of trolley cases, backpacks, boxes and leather goods, and supporting enterprises in pull rods, wheels, linings, masterbatches, zippers, webbings, packaging, foreign trade and e-commerce established presence in Huaihua. From zero to over one hundred enterprises, from one to all sectors in the industrial chain, Huaihua’s bag & leatherware industry has witnessed impressive development, and its products have been exported to Europe, America, ASEAN, Japan, South Korea and other countries.
How can the bag & leatherware industry harness the momentum to achieve high-quality development? The experts, scholars and industrial leaders offered constructive suggestions at the conference.
Li Wenfeng, Vice President of China Chamber of Commerce for Import and Export of Light Industrial Products and Arts-Crafts (CCCLA), believes that efforts should be made in technological innovation and restructuring. It is imperative to establish technological innovation platforms led by enterprises, move faster to foster individual manufacturing champions and “little giant” enterprises that use special and sophisticated technologies to produce novel and unique products, enhance the risk resistance of the industrial chain and supply chain, and facilitate the transformation of the bag & suitcase industry from traditional to digital and intelligent manufacturing, and from manufacturing to intelligent services.
Liu Jiejiao, a level II research fellow and doctoral supervisor at the Institute of Industrial Economics of Chinese Academy of Social Sciences, holds that Huaihua should encourage enterprises to create independent brands and enhance the added value and reputation of products through technology improvement, brand building and market promotion, in addition to advancing the development of upstream and downstream supporting enterprises and clusters, expanding domestic and foreign markets and sales channels, stepping up cooperation with eastern coastal regions, and strengthening government support and industrial collaboration.
Liu Xiangrong, Chairman of the Central China Headquarters of China Certification & Inspection Group Hunan Co., Ltd., deems that the high-quality development of the bag & leatherware industry is inseparable from industrial inspection, testing and certification. Huaihua should redouble efforts to build the quality standard system and public quality service platform, introduce environmental protection technologies, and guide the green, low-carbon and sustainable development of the bag & leatherware industry.
(The guests make a field visit)
27 projects were signed, building momentum for industrial development
“Upon arrival in Huaihua, I could feel the determination of the local Party Committee and government to grow and expand the bag & leatherware industry, which lighted my passion for starting business again,” said Peng Chunru, President of the Huaihua Bag & Leatherware Industrial Association. Peng comes from Jiangxi. Seeing Huaihua’s vast potential for developing the bag & leatherware industry, Peng decided to build factories there. “Huaihua boasts great potential. We are confident in running a prosperous business,” Peng said.
“As a native of Huaihua, I have a special feeling about returning to Huaihua and starting a business. Relevant municipal departments have offered considerate services to investors, to enable enterprises to settle and start production quickly,” said Mou Xiaofeng, head of Shanghai Neoent Industrial Co., Ltd.
Neoent is a globally renowned bag manufacturer. In August 2022, the company invested RMB500 million in a project in Huitong Lianshan Industrial Park in Huaihua, which is expected to produce five million bags per year. Then, in less than two years, the company made three investments. Specifically, in March 2023 the company invested RMB1 billion in a project with an annual output of 10 million bags in Huitong; three months later, the company further invested RMB500 million in a project with an annual output of five million bags in Huaihua International Land Port Economic Development Zone; in January this year, the company invested another RMB100 million in the bag metal zipper production project in Huaihua High-tech Industrial Development Zone.
At the project signing ceremony held on the same day, Neoent signed a contract with Chenxi County of Huaihua City, to jointly build a bag metal accessories production project.
In recent years, Huaihua has put investment promotion and improvement of business environment on the top of the agenda. To develop a low-cost business environment, the city has formulated and implemented 12 measures to upgrade the business environment and eight measures to attract investment and expand opening up; established the “Entrepreneurs’ Day”; opened green channels to address enterprises’ demands; and made ongoing efforts to streamline business handling procedures, in a bid to foster a first-class, market-oriented, law-based and international business environment. Thanks to these efforts, financial capital and social capital owners are optimistic about Huaihua and willing to invest there.
(The signing ceremony)
On the same day, 27 projects of the bag & leatherware industry were signed, involving the construction of the bag and leatherware quality inspection and testing laboratories and production base, design and R&D, accessory production, and import and export.
Specifically, the People’s Government of Huaihua City signed a strategic cooperation agreement with CCCLA. Under this agreement, the two parties will leverage their advantages and take concrete measures in policies, funds, technologies and talents to support industrial development, advance the high-quality development of the bag & leatherware industry, and develop Huaihua into an “international city of bag & suitcase”. The authority also signed a strategic cooperation agreement with China Certification & Inspection Group Hunan Co., Ltd. to jointly build the laboratories, certification service mechanism, and measurement and calibration service mechanisms, so as to improve Huaihua’s overall inspection, testing and certification capabilities and serve the development of the “5+10” modern industrial system.
The guests make a field visit
(Translated by Professor Yu Jie)