Jinjiang puts its best foot forward as companies expand global reach

With about 1,300 sportswear companies, the city is already known as "the capital of sports shoes in China" and accounts for nearly half of China's output and 20 percent of the global shoe output. The city also produces one-fifth of the world's branded jackets and one-fifth of China's candy output, according to official statistics.

"No economist, perhaps, could have envisioned 20 years ago that China would become the world's second-largest economy. Likewise, who can foresee that we in Jinjiang won't be able to develop top global brands in five to 10 years?" the mayor said.

The passion for going global and brand recognition is now entrenched more than ever among the city's entrepreneurs, Liu said.

Shi Meimei, president of Daliya Group Co, said her company of 3,000 employees is trying to develop a brand of its own, K&T, after having been an original equipment manufacturer for Septwolves and other local apparel makers for several years.

Shi said she had sent her son and daughter to study design and finance in Singapore, in the hope that the duo will one day make the family business more prosperous and take the brand global.

Last year, Septwolves bought Kenna Hangzhou, an international agency for luxury goods in China; and Anta bought Belle International's sportswear brand Fila franchises for at least 357.7 million yuan ($53.4 million) in 2009. The acquisition partly contributed to Anta's income of 8.9 billion yuan in 2011, a rise of 20.2 percent year-on-year, despite the global economic slowdown.

Ding Shizhong, Anta chairman of the board and chief executive officer, said his company, one of China's sportswear leaders, has sales that pale in comparison to those of Nike Inc.

In fact, Nike's $24.1 billion revenues for fiscal 2012 were greater than those of all the sportswear businesses in Jinjiang, Liu said.

"International recognition is the key factor for Nike's success," Ding said. "Anta will work to become a globally known business. We will develop foreign markets, even though that means we may not be making profits there in three to five years."

The mayor said the United States still remains the top priority for most Jinjiang firms. "It is the barometer of the world market, and if you can successfully explore the US market, it is safe to say that you are successful in the global market."

Liu said that he was surprised that many business executives and federal officials he met in New York during a recent US trip had not even heard of Jinjiang or its brands. The only exception was Anta, which had already signed several endorsement contracts with leading basketball stars.

According to Liu, Jinjiang companies' expansion will rely largely on having direct contacts with businesses and officials rather than piggybacking on overseas chambers of commerce. To start the process, the mayor has initiated the establishment of a sister-city relationship with Brooklyn in New York.

Liu said Jinjiang will also offer preferential policies, including financial support, to encourage firms to set up more sales outlets or design companies in overseas markets.

Many of the companies have already started to take advantage of these opportunities, he said. Peak, for instance, has established research centers in South Korea and Italy to keep abreast of global fashion designs.

The city also encourages companies to have a say in formulating international standards for some industries, the mayor said. Four Jinjiang firms, including Anta and Xtep, have just participated in the making of international standards for sports shoes, the first time for Chinese shoemakers, Liu said.

Jinjiang enterprises are also making their presence felt at the London Olympics, and promoting their products aggressively.

Under a sponsor contract, medal winners from China's national teams are wearing sportswear provided by Anta. 361, on the other hand, is the official sponsor of the national Olympic committees of Belarus, Latvia and the Maldives, in addition to sponsoring six Chinese teams, according to sources with the Jinjiang city government office.

"There are currently no Chinese brands showcased on Fifth Avenue in New York, most of the dealerships are from Europe," Liu said. "I hope one day we'll make it."

Contact the writers at wangximin@chinadaily.com.cn and zhaohuanxin@chinadaily.com.cn