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Dachuang Bags & Suitcases Garments Co. Ltd

Dachuang, a privately owned company established in 2000, has recorded steady annual growth of 15 percent, with sales of all products including casual backpacks, school bags and computer backpacks reaching US$6 million in 2004. This midsize ISO 9001:2000-certified manufacturer employs 600 workers at a 13,000sqm production facility in Quanzhou, Fujian province.

Dachuang exports all of output, with OEM and ODM business sharing equally in the production. It has introduced an in-house brand, Dafeng, to the domestic market but seldom uses it for export. Main markets are the United States (25 percent of shipments), the European Union (60 percent) and Asia (15 percent). Customers include Skechers of the US and Pro-X of Germany.

Products
Dachuang's backpack products include casual knapsacks in trendy and multifunctional designs (45 percent of output), school bags and children's bags in cartoon themes (20 percent) and specialty backpacks with laptop compartments, cooler compartments or designed for mountaineering purpose (35 percent). Latest designs come with padded bottoms, expandable panels for extra room and CD/MP3 player pocket with earphone ports. Some models are designed with skateboard or bicycle-helmet holders.

Prices range from US$2 to US$15 each. Mountaineering backpacks are the most expensive models. Casual knapsacks in sizes 19 to 22 inches are US$3 to US$7.50, while school bags go for US$2.50 to US$4 each. Special purpose backpacks usually range from US$6 to US$14 or higher.

The company has held prices steady for long-standing customers so far this year, with quotes for other buyers increasing by 8 percent at most. This is despite a 20 percent increase in the company's material costs.

Nylon and polyester fabrics are the main materials used, mostly in counts of 300, 600, 420, 1200 and 1680d with PU backing. Checked and jacquard patterns are best sellers. Lining is made of 190 and 210d nylon and polyester. Cardboard, EVA, PE and wood board are used as stuffing or base.

About 20 percent of materials are imported from Hong Kong and Taiwan, and the rest is locally sourced.

Dachuang has an 18-member R&D team that uses a CAD/CAM system, Photoshop and CorelDraw to design new products and create buyers' samples. The team spends US$300,000 annually on research and sampling, frequently attending professional trade shows such as ISPO and US Outdoor Retailer. Directed by three designers, 600 new styles are launched each year. The team is able to develop buyers' ideas and can accommodate special requirements such as logos, labels, printing and embroidery.

Dachuang's models are generally lightweight and cushioned for ease of use. The development of a new series consisting of three models takes almost one month. The company's designers provide new models to mountaineering clubs in Quanzhou and Beijing and incorporate the users' feedback into new designs.

Manufacturing
Dachuang's factory is located in two buildings with eight sewing lines that have a monthly capacity of 200,000 bags. Embroidery, silk-screening and EVA laminating are subcontracted to four workshops in Quanzhou.

Equipment includes 450 mechanical sewing machines and five computerized sewing machines with SunStar brand from South Korea. Lines have 60 to 70 workers who handle each sewing step and monitor the quality. There are 24 Juki post-bed lockstitch sewing machines, four zigzag machines, six riveting machines and four cutting machines.
 

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Capability  

Production checklist
 
Sewing Lines 8
R&D staff 18
QC staff 25
Cutting machines 4
Mechanical sewing machines 450
Computerized sewing machines 5
In-house lamination No

Exports by product
 
Knapsacks 45%
School/children's backpacks 20%
Speciality backpacks 35%
Fashion backpacks

Exports by market
 
United States 25%
European Union 60%
Eastern Europe
Middle East
Asia 15%
 

 
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Casual Backpacks & Schoolbags

Report on Casual Backpacks & Schoolbags
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Escalating raw material costs
coupled with a labor shortage
caused production costs of China-made school and casual backpacks to jump by almost 20% in 2004.

Due to intense competition, manufacturers have not passed all these additional costs on to buyers. But the situation is expected to change, if rising oil prices push nylon-fabric costs up.

The profiles of key manufacturers in this report will help you choose which makers are best equipped to deal with your requirements and with the challenges ahead.

Plus, the industry analysis, product comparisons and practical advice contained in this one-of-a-kind publication will let you develop the most effective sourcing strategies possible.

  Suppliers: 83 Products: 107 Pages: 114 Published: Apr 05 Price: US$395

All information contained in China Sourcing Reports is the result of original, independent and impartial research conducted by Global Sources analysts.    Apparel Search is working in association with Global Sources to help promote this sourcing report to the international fashion community.  If you have questions about the report or status of your orders, please e-mail Xue Mei for further assistance.
The Casual Backpacks and Schoolbags report has been developed and maintained by Global Sources.  Apparel Search is working in association with Global Sources to help promote this sourcing report to the international fashion community.

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