Taiwanese Textile Suppliers Target Domestic Brand-name Garment Market

Some Taiwanese textile manufacturers are hoping to emulate the increasing popularity of two foreign brands in the local market—Uniqlo from Japan and Zara from Spain—by promoting their own existing brands or establishing new ones.

Uniqlo made its Taiwan debut in the fall of 2010 by opening its first store in Taipei’s Uni-President Hankyu Department Store; there are now seven Uniqlo outlets on the island, and the company plans to follow up its initial success by adding 14 more in the first half of this year.

Zara, the inexpensive Spanish brand, inaugurated its first Taiwan store in Taipei in November 2011, drawing intense attention from the island’s young shoppers. A second store was opened the following month, and more are on the way.

Taiwanese textile suppliers have long worked to establish their own brands both at home and abroad, including the Tainan Enterprise Co., Everest Textile Co., Lea Lea Enterprise Co., New Wide Enterprise Co., and Texma International Co.

Tainan Enterprise was established in 1961 and started out as an OEM manufacturer for leading international brands such as GAP, Ann Taylor, Macy’s, and Talbots. Today, the company’s Tony Wear and Emely brands have become popular in both Taiwan and mainland China.

“Taiwanese firms already have a strong presence in the mainland Chinese market for men’s, women’s, and children’s clothing,” comments a senior Taiwan Enterprises executive. “Indeed, several top brands have become widely popular and now have the opportunity to turn themselves into international fashion labels.”

Tony Wear was introduced a decade ago and today has about 200 outlets scattered across China, making it one of that country’s leading men’s clothing brands.

Everest, an affiliate of the Far Eastern Group, one of Taiwan’s top conglomerates, primarily supplies functional cloth under the EU’s “bluesign” certification to leading international garment brands such as Nike, North Face, and Columbia.

In recent years the company has expanded into recycled cloth. Last year it began receiving orders from the Swedish leisure garment brand Hagloes and the prominent Canadian brand Lululemon.

Everest recently decided to make garments for the domestic market under its own “EverSmile” brand. It began promoting the brand on the Internet in early October 2011 and predicts that it may generate revenues of NT$600 million (US$20 million) in its first year.

“We hope that EverSmile can follow the footsteps of foreign bargain-price brands here and gain increasing popularity among our young consumers,” says C.L. Yeh, the company’s president. “Our quality and design are as good as, or even better than, those of the foreign brands on Taiwan’s market.

“We’ve sold our cloth to more than 50 leading garment brands around the world, so we’re confident that the garments we produce will be accepted by consumers at home and overseas. We plan to expand our garment operations and, initially, sell branded garments through both the Internet and real channels in the domestic market.” Yeh believes that this new endeavor will create 3,000 jobs, 2,000 in manufacturing and 1,000 in sales.

Lea Lea, a leading supplier of polyester yarn, nylon, and synthetic fabrics, extended its operations to include outdoor products last year by acquiring the “go-hiking” brand. It has opened nine “go-hiking” stores around the island so far, and more are in the offing this year. The company also plans to hold a large fashion show within a couple of months, and to inaugurate its own leisure sportswear brand this February.

New Wide, established in 1975, focuses on the production of knitted fabrics and today operates several knitting and dyeing factories in China. It has also set up garment production bases in China, Lesotho, Kenya, and Cambodia.

The firm has, in recent times, supplied garments to Spain’s “Zara” brand on an OEM basis; in 2009 it brought a stake in “easyyoga,” and is now that brand’s general sales agent in China. “We’re not satisfied with being just a manufacturer,” stresses a senior New Wide official, “so we intend to turn out our own garments. As an international textile and garment supplier, New Wide insists on maintaining a high level of quality in its products and is eager to build up its own brand.”

With a store of experience built up over more than three decades, Texma is now a leading maker of flat woven women’s garments with production bases in the Philippines, Indonesia, Vietnam, Cambodia, and China. Its garments are marketed globally to major clients including JC Penny, Wal-Mart, Seas, Mango, Poly, and Ralph Lauren.

Texma has been developing eco-friendly multifunctional cloth for several years and recently worked out garments made of recycled materials in cooperation with Tzu Chi, Taiwan’s largest Buddhist charity group. Over 50 stores around Taiwan are now selling the garments, and the company is mulling the possibility of seeing them in Chinese communities overseas in the future.