Guangdong-based Anhua Zhouli produces midrange to high-end bags, cosmetic items and bathroom products for export. Established in 1997, the company was initially involved in import-export trading, but in 2001 it built a manufacturing plant in Shenzhen. Mass production of computer bags started early 2004, with more than half of products now exported to the United States and Canada, 25 percent to Europe, and the rest to Asia and the Middle East. Wal-Mart is one of the company's OEM customers.

Products
Anhua Zhouli offers a wide range of bags, from travel bags and backpacks, to business bags, tool kits and computer bags. Both softside models made from nylon, PVC and PU, and hardside models made of aluminum and ABS are available. Production of softside models is done in-house while hardside versions are subcontracted.

Classic models dominate the line, accounting for 70 percent of total computer bag output. Prices range from US$3 to US$6. Shells are made from nylon, polyester, PVC, PU, cowhide and sheepskin leather. Lining is made of satin.

Since early 2004, prices of raw materials have risen by more than 10 percent, resulting in a 10 percent increase in computer bag prices. The company expects prices to remain stable in the coming year and is in the process of developing lower-priced substitutes for nylon and polyester fabrics.

Fifteen in-house designers and 20 technicians comprise the R&D and design center. The company has employed an American designer, who has developed a durable fabric made from bamboo that features a soft hand. This fabric can be dyed in various patterns and colors. The company recently acquired a US patent for this innovative fabric and intends to use it as a substitute for polyester and nylon in making computer bags. Aside from improving features of textiles used in bag production, the team releases between 10 and 30 new styles each month.

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