The home textile industry has become the third trillion-level industry that Pinduoduo’s new brand plans to enter after the beauty and furniture industries.
On November 24, Pinduoduo announced a new brand plan for the northern home textile industry in Shijiazhuang, Hebei. It is planned that in the next five years, we will support the development of Hebei home textile industry clusters such as Gaoyang Towels, Shenze Fabrics, and Langfang Door Curtains, cultivate a number of brands with annual sales of 1 billion, promote the upgrading of local industries, and help form a northern home textile industry highland.
Compared with the industry-famous Nantong Dieshiqiao and Shaoxing Keqiao home textile industry belts, the development level of Hebei’s home textile industry lags behind that of Jiangsu and Zhejiang, but it benefits from the cost of labor, land, taxation and other resource factors. Advantages: Hebei’s home textile products are much more cost-effective than their counterparts in the south.
This is highly consistent with Pinduoduo, which focuses on cost-effectiveness. According to statistics from the Hebei Provincial E-commerce Association, as of June 30, 2020, there were more than 50,000 Hebei merchants on the Pinduoduo platform with more than 200,000 stores, including more than 12,000 home textile merchants and more than 15,000 stores. Hebei merchants occupy the top positions in many home textile subcategories such as towels, pillows, toilet mats, bedspreads, and sofa cushions.
On November 24, Lu Jian, Deputy Director of the Hebei Provincial Department of Commerce, expressed at the Beijing-Tianjin-Hebei Home Textile Industry Belt New Brand Planning Conference that he hopes to fight for Duoduo helps Hebei enterprises strive for quality, high quality and low price, and brand. (Photography: Yang Zi)
“Hebei is one of the important sources of goods for the platform’s home textile category. In the context of building a ‘dual cycle’, Pinduoduo will not only help southeastern coastal companies turn inward, We should support the development of small and medium-sized enterprises in Hebei and other northern provinces,” said Chen Qiu, vice president of Pinduoduo.
In the past two years, with the implementation of Pinduoduo’s new brand plan, a number of new Hebei home textile brand companies have emerged on the platform, represented by Zhenjian Liangpin, Yongsheng Plastic Industry, and Mujie Home. .
Catch the new e-commerce express
Zhenjian Liangpin is a dark horse in the home textile industry on the Pinduoduo platform. This year’s “Double Eleven” has become the home textile brand of Pinduoduo. Category sales champion. It was co-founded by three young merchants on the advice of Pinduoduo’s industry assistant. These three merchants were previously the top 1 merchants in the platform’s towel, pillow and cushion categories.
Since the official flagship store launched on the Pinduoduo platform in September this year, Zhenjian Liangpin’s sales have exceeded 25 million yuan, showing amazing explosive power. Founder Tao Zilong predicts that by the end of 2021, sales will exceed 5 million yuan. billion.
The two industrial belts of Gaoyang towels and Shenze Fabric are the main industrial bases of Zhenjian Liangpin. One-third of the towels in China are produced in Gaoyang, and Shenze Fabric’s products are famous for their cost-effectiveness.
▲Gaoyang has become the largest textile manufacturing base in China. The picture shows workers monitoring equipment in the workshop. (Photography: Yang Zi)
Mujie’s Home is also a new home textile brand backed by Gaoyang’s towel industry. It is the best-selling toilet mat on the Pinduoduo platform. Its founder Cheng Xiaotian said that if the toilet mats he sold on Pinduoduo were connected, “it can be spread from Beijing to Hainan.” Since late November, the store’s daily sales orders have exceeded 60,000.
Yongsheng Plastic Industry started its business relying on the door curtain industry in Langfang. The local production of plastic door curtains and cotton curtains has a history of more than 20 years. Since Yongsheng Plastic went online on the Pinduoduo platform in 2017, its factory production capacity has continued to expand and it has developed into a leading local enterprise.
What these new e-commerce brands in Hebei have in common is that their founders almost all started on Taobao and then moved to Pinduoduo. “Pinduoduo’s traffic is roaring like a flood, and it is getting bigger every year.” Cheng Xiaotian, founder of Mujie Home, believes that Pinduoduo’s continuously growing traffic dividend provides Chinese manufacturing companies with new historical opportunities.
“Profits in the home textile industry are thin. For factories with annual sales of 30 million yuan, the net profit is sometimes less than 1 million yuan. Compared with the high commissions and service fees of other platforms, Pinduoduo’s zero commission and zero annual fees have reduced The threshold for manufacturing companies to engage in e-commerce,” said Zhao Liangliang, president of the Hebei E-commerce Association.
Industrial Difficulties
According to statistics from the Hebei Provincial E-commerce Association, there are 43 industrial clusters in Hebei suitable for the development of e-commerce, including Gaoyang towels and Qinghe cashmere. , Xinji Leather, Xianghe Furniture, etc., their common advantages are rich industrial varieties and high cost performance, but at the same time they face three major problems: overcapacity, low industry profits and lack of brand.
Gaoyang County, Baoding City, is the largest textile production base in the country. It is known as “there are no stray trees on the mountains of Guilin, and Gaoyang’s floral fabrics are fresh all year round”. There are 4,000 local textile companies with an annual output of 500,000 tons of fabrics, accounting for 30% of the national total. Annual sales have reached 35 billion yuan. However, the local industry also faces the problem of “strong production, weak sales; strong manufacturing, weak branding” Constraints.
In Shenze County, Shijiazhuang City, home dust covers and other fabric products account for more than 70% of the national production and sales. Categories include sofa covers, bedside covers, air conditioning covers, craft tablecloths, tablecloths, chair covers, and sofa cushions, etc. , products are sold all over the country, and some are exported to Japan and South Korea. However, local enterprises are dominated by family factories, and the industry has not yet emerged from the development stage of being small, scattered and with low added value.
▲The Shenze Fabric Industry Belt has more than 800 family factories. The picture shows workers sewing sofa covers. (Photography: Yang Zi)
“Hebei’s home textile industry focuses on mid- to low-price positioning. With the help of Pinduoduo channels, it effectively meets the consumer needs of people in lower-tier cities. How can we achieve leapfrog development and move towards the industry next? Climbing to the top of the smile curve is the key,” said Liu Yanfei, vice president of the Home Textiles and Furnishings Committee of the China Textile Business Association.
Overtaking on corners
On November 24, Pinduoduo Vice President Chen Qiu said that with the implementation of the new brand plan, the platform will focus on helping Hebei The home textile industry brings outstanding manufacturing companies to incubate new brands, and drives supply-side reform and achieves industrial upgrading through the model of data leadership, sales bottoming, and brand leadership.
With the support of the new brand plan, Hebei’s outstanding home textile manufacturing companies have expanded production capacity and improved production and manufacturing levels after receiving continued growth in orders and stable cash flow.
In 2019, after Yongsheng Plastic became the first in the door curtain category on Pinduoduo platform, it used machines on a large scale to replace manual work in cutting door curtains, expanding its two units to 14 units, and its output increased from 200 tons. is 2200 tons. Mujie Home has introduced top production lines from abroad and expanded its production equipment from 40 units in 2018 to 360 units today.
▲The production line of Mujie Home, the machine directly spins various types of toilet mats. The picture shows a worker debugging the machine. (Photography: Yang Zi)
For companies that join the new brand plan, their product research and development efficiency and market response speed have also been improved. Tao Zilong, the founder of Zhenjian Liangpin, said that based on the consumption data provided by Pinduoduo, the company’s new product development cycle has been shortened to 6 days, while the fastest time for its southern counterparts is 14 days. Yongsheng Plastic Industry has subdivided consumers’ differentiated purchasing needs into 462 standardized needs, determined production schedules based on historical sales data, and achieved 48-hour delivery of customized products.
According to Tao Zilong, Zhenjian Liangpin is opening up brand authorization to manufacturing companies in Hebei’s home textile industry, providing agency operation services, helping outstanding manufacturing companies gain the wings of e-commerce and jointly develop new brands.” “Zhen Jian is a good product”.
“Pinduoduo has helped Hebei’s home textile industry gain new opportunities for e-commerce development, and the new brand plan may help manufacturing companies overtake the curve and move from traditional production into the era of digital production.” Textile College of Donghua University Professor Xue Wenliang said. </p
