Ordos cashmere industry seeks global presence

The cashmere industry in Ordos, in North China's Inner Mongolia autonomous region, is embarking on a drive to expand business lines and deepen integration with the global market, said Erdenebileg, vice-mayor of Ordos, at the opening ceremony of the recent China (Ordos) International Cashmere and Wool Exhibition in the city's Dongsheng district.

Dubbed the "cashmere capital", Ordos is world's largest producer of high-quality raw cashmere, accounting for 13 percent of global output, and it also makes a quarter of the world's finished cashmere products.

The city's first cashmere sweater factory, a predecessor of cashmere giant Erdos Group, was established in 1969. It is now home to more than 360 cashmere enterprises, predominantly small to medium-sized.

Leveraging its rich supply of raw cashmere, most cashmere companies in Ordos have developed their own production capabilities, turning raw cashmere into intermediate products such as yarn and fabric, and final products including coats, sweaters, scarves, gloves and socks.

Shuangqi Cashmere Product is seizing new opportunities with international clients. Founded in 2006, the company began engaging with foreign markets only last year.

"Initially, we focused on the domestic market," said Cui Jingwan, the company's owner. "However, with increasing competition from both local and national players, expanding globally has become essential. Our company, like many local peers, excels in quality and production."

Cui has signed deals worth about 1 million yuan ($137,000) with foreign clients she has met at international expos and fairs. During the exhibition's first day on July 19, Russian and Mongolian buyers who had previously traded with her visited the company's booth, potentially bringing in new orders.

"Face-to-face interactions with foreign buyers are incredibly effective and practical," she said.

To enhance global connections, Shuangqi recently hired a seasoned international salesperson from Shanghai and plans to participate in more international fairs.

Mathilde Borredon, a French home interior designer who visited the expo, said: "I've seen so many incredibly beautiful and high-quality things and I tell every local exhibitor 'please come to Europe'. Our wool is scratchy, so we need this kind of soft and light material that can be used close to the skin, and I'm sure it will be a big hit."

Later this year, she will have the chance to buy Ordos cashmere products in Europe because Yang Runping, founder and CEO of Inner Mongolia Palandi Cashmere, is set to open his first brand shop overseas in Paris.

Yang, who started Palandi two decades ago, has shifted from supplying other manufacturers to branding. "With OEM profit margins shrinking, we are reinvesting in our brand and developing innovative cashmere products, including water and fire-resistant fabrics and anti-pilling techniques," he said.

Palandi's revenue reached 60 million yuan last year and is projected to double this year.

Ordos Ke'erqi Cashmere Clothing, which was established 26 years ago, is also innovating by incorporating Chinese embroidery into its cashmere products.

"We offer customized embroidery options on scarves and shawls, which has led to orders from over 20 cities," said owner Bai Yun. "This not only boosts sales but also creates job opportunities, particularly for women."

Laurent Ruhlmann, a professor from the University of Strasbourg and a special guest at the expo's French pavilion, encouraged Ordos businesses to engage in international fashion events. "This will significantly enhance the global presence and success of the Ordos cashmere industry," Ruhlmann said.