|Dachuang Bags & Suitcases Garments
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,
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.
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
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.
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
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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