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Ningxia Cashmere Taps Overseas Market from Hong Kong

Ningxia Zhongyin Cashmere’s Hong Kong subsidiary will act as a bridgehead to oversee all overseas operations.

Cashmere, also known as “soft gold” in the textile industry, is obtained from goats bred on high-altitude grasslands. Mainland China is the world’s largest supplier of raw cashmere, and goat farms in Mongolia supply some of the finest cashmere for export to overseas markets.

Based in northwestern China, Ningxia Zhongyin Cashmere Co Ltd is one of the country’s largest cashmere materials and knitwear manufacturers and exporters. The Shenzhen-listed company acquired Oriental Cashmere Corporation Ltd in 2008 in order to tap into Hong Kong’s talent and expertise in cashmere exporting, especially to the European market. The company recently moved to a 6,100 square-foot office in Kwun Tong and added new staff to further support its global expansion plan.

Ningxia Cashmere Taps Overseas Market from Hong Kong

“Hong Kong is a cosmopolitan city with plenty of experience in international trade. With Chinese and English as the official languages, Hong Kong people can communicate better with clients in terms of language ability. They are also very familiar with international trade best practices and regimes, have an international mindset and a good understanding of western culture,” Ma Feng, Deputy General Manager, Ningxia Zhongyin Cashmere Co Ltd, said.

“The free flow of information in the city also allows us to obtain global market information and insights quickly,” he added.

Hong Kong as a Trade Window

Zhongyin purchases cashmere from Mongolia and other best origins in China, and produces high-quality cashmere materials, yarns, knitwear and fabrics in the Eco Textile Industrial Park in Ningxia. Its other production sites are located in Jiangyin, the UK and Cambodia. Zhongyin also creates and manages its own cashmere fashion brands, including Todd & Duncan, Brown Allan and Philosofie, which are sold to department stores worldwide, and through many of its own flagship stores in Mainland China and two online stores.

“Cashmere production is a capital and labour intensive industry. To meet the company’s global development plan for the cashmere, yarn, fabric and fashion markets, Hong Kong will act as a trade window for our European markets and oversee the UK, Cambodia and Japan subsidiaries. Setting up in Hong Kong helps accelerate our business growth. The city is also a perfect sourcing, financing and RMB settlement platform,” Ma said.

The company made an initial investment of HK$20 million in the Hong Kong subsidiary, Oriental Cashmere Corporation Ltd, in 2008. Sales turnover reached HK$540 million in 2013.

“Mainland companies should fully utilise Hong Kong people’s strengths in international sales and marketing, sourcing and financing to establish a firm foundation to drive overall development,” Ma concluded.

Wednesday, March 11, 2015

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Fast Facts

  • Established in Ningxia in September 1998
  • Mainland China’s largest exporter of cashmere yarn and cashmere sweater in 2013
  • Also produces OEM, white label and self-branded cashmere clothing

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