Big changes sweep across biz clusters

An Peng, general manager of a hanfu manufacturer in Caoxian, said the company purchased six jacquard looms to weave complicated patterns — a key procedure in the creation of hanfu garments. Along with four old ones, these machines have been operating continuously, with workers operating in two shifts to maximize production efficiency, he said.

Walk down any street, and it is hard not to miss the storefronts dedicated to different stages of hanfu production, An said.

These workshops, featuring embroidery, pattern-making, pleating, ironing, packaging and more, have divided each aspect of hanfu production into separate work disciplines, he added.

The hanfu industrial clusters in Caoxian are flourishing, thanks to e-commerce platforms that have revolutionized the way businesses engage with consumers and showcase their products.

The platforms' abilities to attract a vast audience, create immersive shopping experiences, and facilitate direct interactions between producers and consumers have been instrumental in the success of the industry, resulting in the establishment of a comprehensive value chain that encompasses every aspect of hanfu production, said Zhu Keli, founding director of the China Institute of New Economy.

The rapid development of the industrial cluster in Caoxian has boosted e-commerce startups and job creating ventures. The e-commerce sector alone has given rise to 350,000 jobs, among which more than 50,000 are returnees who have chosen to start businesses in their hometowns.

The shift toward e-commerce within the industrial belt is a response to the changing market dynamics and the evolving consumer preferences, said Zhang Zhouping, a senior analyst on business-to-business and cross-border activities at the Internet Economy Institute.

As e-commerce platforms continue to gain traction in various sectors, traditional brick-and-mortar factories have experienced a decline in their offline sales. The convenience and accessibility of e-commerce platforms provide a viable solution for factories within the industrial belt to expand their market reach and increase sales, Zhang said.

By embracing e-commerce, factories can overcome geographical limitations, tap into new markets, and cater to the evolving demands of online consumers. This transition enables them to diversify their distribution channels and remain competitive in an increasingly digital marketplace, Zhang added.

During this year's June 18 shopping carnival, which kicked off on May 31, businesses within industrial clusters operating on JD experienced a 260 percent increase in order volume compared to the same period in the previous month.

Moreover, e-commerce platforms have been actively introducing a range of incentives and support measures to encourage industrial-cluster businesses to facilitate their entry into the e-commerce arena, Zhang said.

From logistics support to marketing guidance, the supportive policies and assistance provided by e-commerce platforms have empowered industrial belt businesses to overcome challenges associated with online operations and maximize their online potential, Zhang added.

Contrary to the perception of the industrial belt as a hub for cheap manufacturing and outsourcing, it has emerged as an opportunity-filled landscape for domestic entrepreneurship and brand creation. The industrial belt has become the largest source of new brands on Tmall, accounting for over 40 percent of the platform's new merchants, according to a report by Taobao and Tmall Group.