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Trade Organizations Show Collective Strength.doc
Trade Organizations Show Collective Strength
IN China it is common that the company position of a businessperson is given a prime spot on their business card, but not in Wenzhou. Natives of this city reserve the conspicuous slot for their titles within an entire industry group, or guild. Guilds have shown themselves to be a vital structure for a booming local economy, and guild leaders are held in high esteem in the region. There are 34 such groups in Wenzhou at present, representing 20,000 or more enterprises, and covering all sectors of the local economy.
A Binding Force
Since he was elected chairman of the Wenzhou Fashion Association in 2006, Zheng Chen’ai, president of Zhejiang Aobenni Garments Co., Ltd., has had to set aside two thirds of his time for association affairs, but he’s not complaining. “The association exists at the pleasure of the enterprises,” he said. In the early 1990s local garment manufacturers felt strongly that they should forge recognizable brands, in the hope they could change the national prejudice against the city as a workshop of shoddy and cheap togs. This is no easy task for any single enterprise. So nine companies founded a garment industry association, the first private one of its kind in China.
“The success of Wenzhou’s garment industry owes much to the association. Enterprises found they had more to gain than lose by bringing down the walls between them,” said Zheng. When Baoxiniao, another leading garment company in the city, inaugurated its new facility in 1998, its president opened it to counterparts in other companies of the trade, a move that counters the common sense notion of guarding against competitors. Wenzhou people sensibly regard the judgment of their craft’s brethren as valuable advice on their own product lines.
With 2,500-plus garment companies generating a total production value in excess of RMB 40 billion, Wenzhou now has one of the most formidable garment industries in China. After Zhe
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