What are the secrets of these two groups to break the "curse" of the Covid-19?

The 2020 Covid-19 sweeps the world, and the global textile industry has experienced unprecedented global supply and demand shocks. According to the International Textile Federation's Covid-19 impact survey, companies around the world expect their turnover in 2020 to drop by about 30% on average compared to 2019. Chinese textile and apparel companies will be greatly affected in the domestic and foreign markets.

In this market environment, can any company break the "curse" of market shrinking and performance decline?

At the beginning of 2021, the author visited these two factories and learned that they did not experience layoffs or work stoppages during the Covid-19 period. Instead, they accelerated their cooperation with major domestic and foreign companies through strong alliances. They are SUNTAK INDUSTRIES GROUP LIMITED (hereinafter referred to as SUNTAK GROUP), a factory specializing in the production of clothing and underwear accessories, and Sun Hing Industries Holding Limited (hereinafter referred to as Sun Hing Group), a material manufacturer that produces high-quality underwear, swimwear and casual sportswear textiles.

SUNTAK GROUP office building in Shenzhen

SUNTAK GROUP was born in 1980. It is a production-oriented enterprise specializing in the research and development, design, production and sales of woven belts, knitted belts, hooks, woven labels and printed labels. The group has developed for more than 40 years, has been focusing on product development and production, focusing on testing of various international standards, and long-term commitment to green environmental protection issues. It is the first choice for many foreign brands in the market. (About SUNTAK GROUP more detailed reports, the stamp is recalled hereWhy did H&M, Victoria's Secret and Wacoal choose to cooperate with this factory for a long time?)

SUNTAK GROUP's factory in Shenzhen

Keith Chan, the sales director of SUNTAK GROUP, has been responsible for the international business of SUNTAK GROUP for more than ten years. According to him, with deep market accumulation, last year Covid-19 did not have a great impact on SUNTAK GROUP. For many years, SUNTAK GROUP has maintained long-term friendly cooperation with many big brands. Even in the most severe period of Covid-19, customers are as always confident in the production of SUNTAK GROUP. Many customers have informed the brand's development plan in the next 1-2 years in advance. SUNTAK GROUP can plan to make future products of the brand during Covid-19, and it will be ahead of many companies in the industry in this link alone. At the same time, the Group strives to tap market demand and obtain new orders while guaranteeing normal business. Since mid-July, factory orders have achieved new growth.

Keith Chan, Sales Director of SUNTAK GROUP

At the beginning of 2021, the chairman of the company put forward the development strategy of "reform, opening up, and innovation". The Group will strengthen internal control and strive to reduce costs. Optimize the internal management process and resource allocation of the enterprise, strengthen inventory management, capital chain management, improve operational quality and efficiency, cost and expenditure control, etc.; focus on innovation, increase investment in research and development, and apply for more patented products. At the same time, it will more actively expand the domestic market and implement the "walking on two legs" strategy. One of the most important measures is to join forces with the sister company Sun Hing Group to step up cooperation.

Sun Hing Group, another "invisible" industry giant

The brother unit that SUNTAK GROUP will cooperate with-Sun Hing Group, was founded in Hong Kong in 1968, mainly producing high-quality underwear, swimwear and casual sportswear knitted textiles. Eddy, the general manager of Sun Hing Group, recalled that the group started with a rubber root machine, and it took more than 50 years to become one of the best fabric manufacturers in the world.

Eddy, General Manager of Sun Hing Group

Sun Hing Group and SUNTAK GROUP are in the same park in Shenzhen, only a five-minute walk away. The total area of ​​the group is 650,000 square meters. The Group utilizes the most advanced machinery and equipment and professional technical team to cater to the market’s needs for rapid response and different preferences. Although the group has always been "low-key" in terms of publicity, in fact, its business has spread to most regions such as Asia, Europe, and North America. The customers except for the established industry giants such as H&M, Victoria's Secret, Uniqlo, Wacoal, Aimer, Manifen, etc., last year's Double Eleven Ubras, the underwear brand that has topped the Tmall sales list, is also one of the important customers of Sun Hing Group.

Sun Hing Group's factory has more than 1,000 weft knitting machines, in addition to warp knitting machines, lacquer machines, printing machines, fabric forming machines, and cup forming machines. According to Mr. Wu, there are more than 500 kinds of weft knitting products, with an annual output of more than 30 million yards. There are more than 200 different warp knitting products, with an annual output of more than 25 million yards. The company covers almost all underwear and sports knitted fabric products on the market. Customers who visit Sun Hing Group can basically find any products the company needs.

Sun Hing Group's factory in Shenzhen is equipped with professional machinery and equipment.

Attaches great importance to environmental protection and sustainable development issues

Like SUNTAK GROUP, Sun Hing Group attaches great importance to environmental protection and sustainable development. The group started to develop its dyeing and finishing business in 1991, and faced the problem of large amounts of water and wastewater discharge. In order to reduce the impact on the environment, the group invested heavily in building a unique water treatment system. Today, the area of ​​water treatment, green areas and dormitories is about 290,000 square meters.

Downstream of the sewage treatment system, the discharge water quality is much higher than the national discharge standard

Sun Hing Group's sewage discharge water quality is even better than the national discharge standards, and has won the Shenzhen "Green Enterprise" and the Hong Kong "Hang Seng Pearl River Delta Environmental Award" and other awards for the company. In 2012, Sun Hing Group was awarded "the Oeko-Tex Company of the Month" "August 2012" "August 2012". On June 12, 2013, he was awarded the OEKO-TEX Sustainability Award in Frankfurt, Germany. These heavyweight awards in international and domestic professional fields have made the group a model in the industry.

Some heavyweight awards awarded by Sun Hing Group

In addition to promoting the environmental protection development in the industry, the Group has also continuously improved its technology and developed a series of distinctive products over the years. Whether it is in the field of sustainable development or innovation, it has been recognized by the market for many years. Mr. Wu said that the group will always adhere to the original intention of green at heart, continue to promote the sustainable development of the industry, and develop more beautiful and unique new products, and integrate textiles into fashion and environmental protection.

Join forces to truly realize the "one-stop solution"

The Covid-19 in 2020 has made the industry's shortcomings in the relatively fragmented industry of flour and auxiliary materials more prominent. Since the two major groups of SUNTAK GROUP and Sun Hing Group have cooperated, the professional operation teams and customer resources of both parties have been able to achieve sharing. Both teams can communicate in time with the demands of customers of any party, which maximizes work efficiency. Mr. Chen of SUNTAK GROUP introduced that the fabrics purchased from Sun Hing Group can develop absolutely matching accessories in SUNTAK GROUP, eliminating the need for customers to find other related products. In terms of raw materials, yarns, fabrics, and production processes, the two parties have truly enabled customers to achieve a "one-stop solution." Mr. Chen revealed that since the cooperation between the two parties, many customers have expressed their satisfaction with SUNTAK GROUP and Sun Hing Group's new operating mode.

The forward-looking group strategy, strong and stable corporate operation capabilities and competitiveness have enabled the two groups to grasp the recovery period after the improvement of the Covid-19 prevention and control situation, and even found a new market space in the Covid-19, leading the way. The macroeconomic situation began to pick up.

On April 19, 2021, SUNTAK GROUP and Sun Hing Group will join hands to exhibit at booth 2C01 of the 16th China (Shenzhen) International Brand Underwear Exhibition. At the 96-square-meter booth, the two groups will exhibit many functional patented products. Mr. Chen of SUNTAK GROUP expressed that he hopes that more outstanding domestic enterprises can understand the two groups through the exhibition, and he also hopes to bring the group's decades of experience in the high-end market in the international market to the country and grow together with domestic brands.

In the post-Covid-19 era, the global textile and apparel industry is expected to usher in a golden recovery period in the second half of 2021, especially China’s relatively stable social and market environment. The economic trend in the second half of the year is more optimistic, and the industry will usher in a period of retaliatory growth. . Covid-19 has brought a new round of reshuffle in the industry, and enterprises' demand for high-quality, functional products will usher in a high growth trend. Green regeneration is a major trend in recent years, and brands and consumers will pay more attention to environmental issues. Covid-19 further promotes the market to rethink about green, environmentally friendly, renewable and sustainable lifestyles. The two major groups, SUNTAK GROUP and Sun Hing Group, have unique advantages in the market in these aspects, and look forward to working with outstanding underwear companies after nirvana to make a comeback and jointly explore new business opportunities in the textile and fashion industries in the "post-Covid-19" era.