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Whenever high-end costume tailoring is mentioned, people always think of places such as Milan and Paris.mini storage In fact, several Chinese companies have established fame in the sector, as Bao Chang reports from Beijing. From the moment President Xi Jinping’s special airplane touched down in Moscow in March, it was clear the Chinese fashion world would be sent into flux. The airplane’s door opened to reveal Peng Liyuan, Xi’s wife, dressed in a designer navy blue overcoat with matching handbag and a light turquoise silk scarf, marking her international debut as China’s first lady. All elements of her couture were scrutinized and raised public interest. Having no logos and no other design signs, Peng’s clothes were clearly no doubt tailored uniquely. Marking a sharp contrast with the Chinese rising taste for foreign brands, the first lady’s fashion choice was domestic production. Although officials strived to keep low-key about worldwide interest in her fashion tastes, the Chinese design and tailoring industry undoubtedly received a big boost. One State-owned enterprise made a move into tapping into the high-end costume-tailoring sector as part of the company’s developing module into transforming and upgrading its products. “We are providing one-on-one personal costume tailoring for Chinese chief executives who have robust demand for premium business dress, as more and more Chinese businessmen become active on the international stage, where they need a professional and decent image,” Li Xuecheng, general manager at Jihua Group Corp Ltd, said in an interview with China Daily. Combined with the 78-year-old service branches of the Chinese army, Xinxing Cathay International Group Co Ltd, the parent company of Jihua Group, engages business including metal smelting, textiles, mechanics, professional equipment and the rubber products sector. Jihua Group, the group’s textile and clothing subsidiary, is China’s largest army needs supplier and owns the biggest business suits and shoes production base in the country. The company has also been the main supplier of government leadership dressing supplies. The company no longer limits itself to being an army needs supplier but is seeking a new business mode and growth point in the huge and booming domestic consumer market. Jihua is launching products especially designed for businessmen, including handmade Western suits, Chinese tunic suits, shirts and coats. In a move to compete with foreign luxury dressing brands, Jihua invited a famous Italian fashion designer to train employees. All materials are selected from premium sources for business dressing worldwide. “With the same quality and unique design, our products are priced much lower than those of foreign luxury brands,” Li said. As an executive of central State-owned enterprises, self-marketing is his very useful measure to introduce products to target customers. “Many orders are made when I wear the new collections and show them to other State-owned executives during group meetings, business negotiations and career-training together,” said Li. Western suits are the most common dress for those businessmen and, once some clients accept the brand and products, they will bring more customers within the bloc, Li added. Mentioning high-end costume tailoring, people always think of places including Paris, Milan and Hong Kong. In recent years, more and more Chinese businessmen have begun to order and buy Chinese luxury business wear abroad. “The rising Chinese wealth group has begun to pursue freedom. They no longer adore the well-known brands, but pay more attention to the creativity and quality of products. The high-end, low-key and pure tailoring dressing is attracting more and more rich people,” said Kang Yan, senior partner at Roland Berger Strategy Consultants (Shanghai). The potential market is huge. There are 960,000 multimillionaires and more than 60,000 billionaires in China. They account for a small proportion of the total population, but own 80 percent of the total wealth in the society. Individualization is their pursuit. “It’s abnormal that we don’t have high-end costume tailoring in China where there is the most developed textile industry儲存in the world,” said Li. Apart from the one in Beijing, Jihua will open more high-end costume tailoring shops nationwide. The northwest region is its next target market where the company will increase investment and open shops. Li said strong brand awareness is still essential for high-end tailoring — and it will take a long period to promote Jihua brand awareness in the domestic market. Over the past decade, China’s exports of textiles and clothing have increased to more than one-third of the global number thanks to labor and production cost advantages. Meanwhile, as the labor-intensive industries transferred to more emerging economies, China’s domestic market is to be further explored as the new growth point for the industry, China National Textile and Apparel Council said in a report. Li said the company has been engaging in the foundry production for some internationally famous big and luxury brands. Now it plans to take advantage of its production techniques and develop independent brands with the mature techniques and production quality it has gained in the past. That’s the direction of the company’s industry upgrading. As a producer of many luxury clothes brands, Jihua is also planning to enter the terminal-end sales channel sector by setting up outlets in the Chinese market. The role conversion from original equipment manufacturer to terminal retailers combines the production and sales operation together of luxury brands. It is considered a key measure for Jihua to complete this strategy upgrading. Under cooperation with Italian outlet company Gestioni Arcotecnica S.r.l., Jihua plans to establish several outlet shopping malls in cities including Changchun, Shijiazhuang, Lanzhou, Nanjing and Qinhuangdao within the next 10 years. The two sides will establish a joint venture to operate the outlet projects. GA with its rich experience in the outlet industry will take charge of brand recruitment, guaranteeing the multiplicity of high-end labels. Each will have an investment of 1 billion yuan ($163.3 million). All projects will be located within a suburban area 50 to 100 kilometers away from downtown of the city, targeting middle-class buyers in the Chinese market. Construction of the first project will start by the end of this year. Engaging in commercial real estate and outlets operations with Italian business partners will help the company to gain international influence in the sector within the next 10 years. The outlet business is expected to become the major revenue resource of Jihua over the next 10 years, according to Li. Commercial real estate is to become the core business of the company as the labor-intensive industry is tending to slow down in China. The financial statement of the company shows that army products still dominated the revenue generation of Jihua last year. In 2012, Jihua Group generated revenues of 26.49 billion yuan, increasing by 16.99 percent from a year earlier. Total profits grew 26.15 percent to 1.054 billion yuan. The company will try to expand to the upstream and downstream of the civilian goods industry and step up an internationalization process, the statement said. The booming domestic market and rising high-end purchasing group have boosted the development outlet industry in China in recent years. European outlet brand McArthurGlen set up an office in China last year and launched a Chinese-version website in a move to seek more business opportunities. Shanghai-based Bailian Group plans to open no less than seven outlets within the next five years in Wuhan, Tianjin, Jiangsu and Zhejiang provinces. From 2002 when China’s first outlet was established in Beijing, the number of outlets in the country now exceeds more than 400. “Attracting the premium brands has been a challenge for outlet operators and, at present, few domestic outlets can attract true luxury brands,” said Wan Wenying, vice-president of the China General Chamber of Commerce. Contact the writer at baochang@chinadaily.com.cn Attracting the premium brands has been a challenge for outlet operators and, at present, few domestic outlets can attract true luxury brands.” Wan wenyingvice-president, china general chamber of commerce 儲存倉