Fashion Industry Resilience: How Manufacturers Thrive Amidst The Pandemic

The pandemic has us all housebound and our clothing of choice overwhelmingly skews towards athleisure these days. So it’s strange to discuss people and companies in the fashion space who are thriving this year. However, the reality is quite different. Instead of brands like Uniqlo celebrating a successful year, it’s the manufacturers who spin cotton thread into clothing that are finding opportunities amidst the challenges. A prime example is Ma Jianrong, the founder of Shenzhou International Group Holdings, which is the largest knitwear maker in the world. Shenzhou supplies fabric to major brands like Nike, Adidas, Puma, and Uniqlo. Remarkably, Jianrong's estimated net worth has risen to $2.6 billion, with a 17% increase in company shares this year.

There are multiple avenues to generate revenue in the fashion industry. One can build a brand like Michael Kors or Tory Burch, own the malls or e-commerce sites that sell fashion, or produce the raw materials that form the fabric for clothing. The dynamic nature of this industry allows for various players to succeed depending on their focus and innovation.

In a similar vein, Alibaba's founder Jack Ma has launched the Luxury Pavilion on his e-commerce platform, while Pony Ma has created a comparable offering on Tencent's Tmall platform. These platforms have attracted high-end brands such as Cartier and Versace, showcasing their products effectively. Jack Ma also owns the Intime Department Stores and the Southeast Asian e-commerce giant Lazada. In contrast, Pony Ma is a significant investor in Wanda Commercial Properties, the largest shopping mall operator in China, along with interests in menswear retailer Heilan and the fashion e-commerce site Vipshop.com.

Moreover, Chen Jianhua and his wife Fan Hongwei own Hengli Group, which ranks among the world’s largest polyester manufacturers. Their net worth stands at $1.5 billion, and they are currently exploring the innovative business of converting coal into clothing. They have committed $20 billion to develop this initiative, with an expected launch by late 2025. This venture emphasizes the creativity and resourcefulness of industry leaders in adapting to market demands.

Shen Guojun, chairman of Intime Retail, operates one of China’s largest retail chains, featuring 27 department stores and five shopping malls. As a leading investor in retail and real estate, Shen has played a crucial role in developing the Yintai Center in central Beijing. He has collaborated with Alibaba to expand Intime's reach, especially during ongoing challenges faced by brick-and-mortar stores.

If there's a lesson learned from the pandemic, it’s that traditional brick-and-mortar retailing is becoming less viable. Instead, embracing e-commerce offers a broader customer base and provides constant access to goods, underscoring the necessity of adaptability in the current retail environment.