Sanmen jacket industry remains robust

Stable employment, enhanced design capabilities and a comprehensive industrial chain have propelled the outdoor jacket industry in Sanmen county, Zhejiang province, according to industry leaders and local government officials.

Public data reveals that approximately 60 percent of China's outdoor jackets are produced in Sanmen county, located on the east coast of Zhejiang. With a population of 387,000, the county spans 1,510 square kilometers and is home to more than 400 outdoor jacket companies employing over 30,000 people. These companies, boasting over 40 independently developed brands, collectively sold around 80 million outdoor jackets last year, generating an annual industrial output of 12 billion yuan ($1.7 billion).

Lantu Outdoor is a prominent player in Sanmen's outdoor jacket industry. Initially an original equipment manufacturer for overseas outdoor jackets and sports brands, Lantu now produces about 3 million jackets annually, employing 1,600 people. Its three major business segments include school uniforms, professional clothing for large corporations, and orders from established brands.

Currently, 70 percent of Lantu's products are sold to domestic clients in China, which has boosted profit margins to around 20 percent, according to Zhang Yu, deputy general manager of Lantu Outdoor.

The company allocates approximately 20 percent of its annual sales revenue to research and development. Zhang emphasized that innovation is critical, especially amid relatively low consumer demand during the current economic slowdown.

"One of our clients placed an annual order for 150,000 jackets this year, only half the volume of last year," Zhang explained.

"However, another brand we work with experienced a 200 percent sales surge this year because its designs resonated strongly with consumers."

To maintain fresh and appealing designs, Lantu collaborates with the School of Fashion Design and Engineering at Zhejiang Sci-Tech University. "Getting input from young university students keeps our designs innovative," Zhang said.

Despite the industry's growth, automation in outdoor jacket production remains limited. "The clothing industry is still labor-intensive," Zhang noted. "Additionally, recruiting skilled technicians in county-level areas like Sanmen is challenging, even with salaries 25 percent higher than those in higher-tier cities."

However, Sanmen boasts a high workforce retention rate, especially at Lantu. Among its 26 sales professionals, 25 have been with the company for at least seven years.

Another unique aspect of the local workforce is their preference for jobs within a 15-minute walk or e-bike ride from home. To accommodate this, Lantu has established multiple workshops across the county, each staffed with 50 to 100 workers, a director and a quality control inspector.

An outdoor jacket industrial park covering 230,000 square meters began construction in November last year. Funded by Sanmen's national capital operating company with an investment of 680 million yuan, the park is set to be operational by the end of this year. It will house 30 outdoor jacket companies.

"The industrial park is designed to create a complete, multi-level ecosystem for outdoor jacket manufacturers," said Ye Minsong, deputy general manager of Sanmen's national capital operating company. "This will enhance the recognition of Sanmen-made outdoor jackets and attract more talent to the region."

shijing@chinadaily.com.cn